FTSE makes gains
Gains for commodity stocks put the London market in positive territory today despite pressure on retailers in the wake of Woolworths’ closing-down sale.
The FTSE 100 Index was 24 points up at 4391.3 by mid morning as miners gained ground and crude oil ticked higher, lifting the likes of giant BP.
The advances offset earlier losses for retailers as Tesco announced a 50% off sale and an update from high street music and books chain HMV disappointed markets.
The firm’s half-year results did little for confidence after it reported a weakening in recent sales, particularly in its books division, as shares fell 0.75p to 110.25p.
Other retailers under pressure included Marks & Spencer, down 2.25p to 229p, while supermarket Tesco was off 2.8p at 331.5p after it confirmed plans for a half-price sale.
The industry has been shaken by the demise of Woolworths and the firesale of its products in the closing down sale.
In the FTSE 250, Argos owner Home Retail Group clawed back earlier losses to stand 0.25p better at 226.25p and Debenhams also bucked the gloom with a rise of 1.75p to 24.5p. But Game Group – another potential victim of the Woolies’ closing down sale – stood 7.25p lower at 116.25p, or 6%.
In the top flight, oil prices rising above 45 US dollars a barrel on anticipation of an Opec production cut underpinned the Footsie’s modest gains, with BP up 3% or 15.5p to 528p and BG Group 48p better at 987p.
The leading Footsie riser was Tullow Oil, up more than 15% or 75.5p to 571p after new finds in Ghana and Uganda.
But insurers had a difficult session after Goldman Sachs dropped Aviva from its conviction “buy” list. Aviva shed 11.5p to 399.25p, while Standard Life was the worst top-flight performer as shares fell 16.75p to 270.25p, or 6%.
