US boost helps FTSE close on the up
Significant gains by retailers and upbeat sentiment from the US helped the London market close in positive territory today.
Data from the UK's Office for National Statistics (ONS) showed that higher demand for clothing and footwear helped sales rise by 0.6% in August.
Although the ONS data also raised the prospect of higher interest rates, the FTSE 100 Index closed 8.1 points higher at 4556.5.
Traders said a smaller-than-expected rise in US weekly jobless claims helped lift the Footsie late in the session.
By closing time in London, New York’s Dow Jones Industrial Average was some 40 points above its opening mark as it recovered from factors such as yesterday’s profits warning from Coca-Cola.
In London, shares in Kingfisher lifted 9.5p to 299.5p after it announced a 6% hike in sales at B&Q and said half-year profits had risen 18.4%.
Other retailers to benefit from the positive news flow in the sector were Boots, adding 11p to 694p, Tesco up 2.25p at 272.75p and Dixons 2.25p stronger at 165.25p.
However, Cadbury Schweppes suffered in the wake of the profits warning from Coca-Cola, off 5p at 436p. Around 25% of Cadbury’s turnover is generated by drinks sales in the United States.
The highest risers in the Footsie today were Amvescap up 11.75p to 320.25p, Kingfisher adding 9.5p to 299.5p, mmO2 up 2.25p to 94.75p and InterContinental Hotels adding 14p to 650p.
The heaviest fallers were Reckitt Benckiser off 43p to 1422p, Man Group down 28p to 1344p, British Land off 13.5p to 764p and Allied Domecq falling 6.25p to 457.75p.
