Decent climb for FTSE
10/12/2009 - 11:30:53The FTSE 100 Index made steady progress today as investors shrugged off a poor session in Tokyo and persistent worries over Europe’s debt burden.
Japan’s Nikkei 225 index fell 1.4% after core machinery orders slumped in October in a further sign that companies are cutting back on spending.
And a move by ratings agency Standard & Poor’s to lower its outlook on Spain to negative stoked general debt fears following warnings earlier in the week about the health of finances in the UK and the United States.
The Footsie climbed 26.3 points to 5230.2 by mid-morning, with banks high on the risers’ board despite a 50% tax on bankers’ bonuses announced in the Pre-Budget Report.
Royal Bank of Scotland shares, which took a battering earlier in the week, were up 1.3p to 31.6p, while Lloyds Banking Group added 2.4p to 57p.
As well as another poor session for miners, water company United Utilities fell 0.8p to 492.3p after it said chief financial officer Tim Weller had agreed to take on the same role at Cable & Wireless Worldwide.
Outside the top flight, shares in luxury goods firm Mulberry made impressive progress as the company bucked the recession with a 46% rise in sales in the 10 weeks to December 5.
With Mulberry also forecasting results well ahead of expectations, shares jumped 16% or 20p to 144p.
Packaging and office products firm DS Smith was another firm to lift guidance after a better than expected first half of its financial year. Profits fell by £10m (€11m) to £44.1m (€48.9m) but the company said action taken at the start of the year meant it was well placed to make progress.
Shares jumped 10% or 12p to 125.5p as DS Smith reached the top of the FTSE 250 Index risers board.
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