Rates decision hits share prices

The FTSE-100 Index has lost ground following the Bank of England's decision to keep interest rates on hold at 6% - having been at a 45-point session high moments before the midday announcement.

The FTSE-100 Index has lost ground following the Bank of England's decision to keep interest rates on hold at 6% - having been at a 45-point session high moments before the midday announcement.

The Footsie is now up 27.2 points at 6087.1, with a combination of tech, telecom, bank and petroleum stocks offsetting heavy falls among retailers.

Heavyweights BP Amoco and Shell have made strong gains - up 20p to 547p and 22.50p at 547.50p respectively - on the back of higher oil prices.

Telecoms and tech stocks also added their weight, with Vodafone up 7p at 224p, Telewest Communications ahead 5p at 126p and telecoms equipment group Energis 14p higher at 529p, while software group Autonomy is 82p higher at £16.82.

Among banking stocks, Barclays is up 20p at £21.00, Abbey National is ahead 13p at £12.22, while Bank of Scotland has lifted 9p at 738p.

But it is retailers that are suffering, with shares in Great Universal Stores, Next and Matalan plunging after the groups issued their updates, leading to falls in rivals including Marks & Spencer, Peacocks, Kingfisher, Debenhams and New Look.

GUS is the largest faller in the FTSE-100, off 14% despite publishing an upbeat Christmas trading statement for its Argos stores. The group has plunged 75p at 469.50p after traders worried about an update on its business information service Experian, which said the division had seen reduced activity in recent weeks in North America as clients reacted to the slowing US economy.

Kingfisher, the Woolworths-to-Comet group gas also seen its shares affected, off 16p at 500p while Next fell 16.50p to 780p after shocking the market by saying Christmas sales had fallen below its hopes. The slide impacted on rival Marks & Spencer, which is down 4% - off 9.25p at 201p and Debenhams, 27.50p lower at 295p.

The discount retailers are also in troubled water, with Matalan off a massive 37% - 267p lower at 460p. The fall came after Matalan said Christmas sales had jumped ahead, but margins for the 19 weeks since the half year were slightly lower. Peacock Group has fallen in response, off 10p at 94.50p, while New Look is down 6.50p at 72p.

Among the smaller stocks, the housebuilding sector has sparked into life after Taylor Woodrow unveiled plans to gatecrash Bryant and Beazer Homes' planned merger, with a potential takeover offer for Bryant.

Bryant confirmed it had received an approach from Taylor of 189p-a-share, and shares shot up 13p to 176.50p. Taylor Woodrow is off 7% - down 13.50p at 168p - while Beazer is unchanged on 163.50p.

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