FTSE on the up
London’s blue-chip stocks were firmly in positive territory today, more than recouping losses from yesterday’s 1% fall.
The FTSE 100 Index rose 78.8 points to 6212.9 by mid-morning, boosted by a modest advance on Wall Street overnight and further hopes that the US Federal Reserve will cut US interest rates later in the month.
Plumbing and heating group Wolseley jumped to the top of the leaders’ board after it announced it had spent £87m on five acquisitions, which should add £100m to annual revenues. The stock was 34p higher at 962p.
Fashion retailer Next was another strong performer after it posted forecast-beating results. Profits rose 11% in the first half of the year, boosting shares 3%, or 49p to 1910p, even as the firm warned it remained cautious over the outlook for the rest of the year.
Banking group Barclays lifted 17p to 597p after it said its investment banking division, Barclays Capital, had remained profitable during August, despite the market turmoil. The group came under the credit spotlight last month after it was revealed that it had borrowed £1.6bn from the Bank of England’s emergency lending facility.
Another casualty of the recent credit crisis, mortgage bank Northern Rock, also enjoyed a rally, climbing nearly 3%, or 18.5p to 664.5p.
Currys owner DSG International was the only faller following a broker downgrade from Morgan Stanley. The stock was 0.7p lower at 146.5p.
In the second tier, a profits warning from JJB Sports saw shares fall 29.25p to 171.5p – a drop of almost 15%. Analysts cut their forecasts as the firm said tough trading conditions amid higher interest rates would hurt profits in the second half of the year.
Sports World owner Sports Direct followed the stock, declining 5%, or 7.25p to 130p.
