Late US boost for FTSE
London’s blue chip share index received a late session boost after Wall Street rose on the back of better than feared US economic output figures.
Official figures from America showed the US economy shrank at its fastest rate for a quarter of a century, but the 6.3% contraction at the end of 2008 was not as bad as experts had expected.
The Dow Jones Industrial Average lifted by more than 1% in early trade, helping the FTSE 100 Index into positive territory, closing up 25 points at 3925, after struggling for direction earlier in the session.
Among London stocks, retailers were in the spotlight as news of a worse-than-forecast slide in February sales added to plunging profits from Next and Kingfisher.
Official figures revealed sales volumes dropped 1.9% between January and February, with non-food stores suffering the most.
This weighed against a rally in the banking sector, with Barclays one of the leading risers, up 16.7p at 140.1p, with sentiment still positive amid hopes of an imminent iShares sale. Lloyds Banking Group followed with a hike of 7.2p to 69p.
Miners rising on demand hopes after the US economic data also provided some upside for the Footsie. Eurasian Natural Resources led the way, ahead 69.5p to 480p.
Insurer Legal & General fought back from yesterday’s decline after slashing its dividend and reporting hefty annual losses with a gain of 4.8p to 44.5p.
Aviva also clawed its way out of the red after early morning losses, later closing up 9p at 245p.
But B&Q owner Kingfisher was a heavy faller, down 3.3p to 139p, after it posted a £25m (€26.6m) slump in full-year profits at the UK DIY chain.
Like-for-like sales declined 6.1% in the year to January 31, it said.
A 14% slide in annual profits at Next and forecasts for worsening sales also sent the fashion chain into negative territory, off 20p to 1274p.
Elsewhere struggling sports fashion group JJB Sports lost initial gains as high as 30% after staving off collapse with the sale of its fitness clubs and an agreement with lenders.
Shares eased back to stand 0.75p lower at 13.25p.
FTSE 250 firm and Fox’s biscuits maker Northern Foods was another riser, up 4p at 49p, after reassuring investors it was on course to meet profit expectations on strong demand for new value pizza and sandwich ranges.
It posted an 8.8% increase in underlying revenues for the 13 weeks to March 28, a big improvement on the 3% reported for the previous quarter.
And menswear chain Moss Bros soared 33% after it said sales of suits were up 20% on last year.
The biggest Footsie risers were Eurasian Natural Resources ahead 69.5p at 480p, Barclays up 16.7p at 140.1p, Legal & General ahead 4.8p at 44.5p and Lloyds Banking Group up 7.2p at 69p.
The biggest Footsie fallers were British Land down 16.75p at 352.75p, BAE Systems off 15p at 328p, Centrica down 10.25p at 224.75p and Icap down 12.25p at 302p.
