Footsie edges past 4800 mark
Takeover talk in the media sector helped the FTSE 100 Index hold its own above the 4800 threshold today.
After dipping above and below the key barrier throughout the day, the Footsie closed the session 16.7 points ahead at 4800.3.
Media stocks grabbed the limelight from the retail sector after shares in blue-chip companies ITV and Reuters both achieved healthy rises.
The 2% improvement by news and information group Reuters came after it said the recent recovery in its revenues would continue in the first quarter of this year. Shares were up 9.5p at 391.25p and helped FT publisher Pearson improve 4.5p to 627.5p and magazine specialist Emap rise 6p to 800p.
ITV also benefited from the improved sentiment, although its 4% share price gain was mainly down to talk of possible bid interest from US venture capital group Kohlberg Kravis Roberts. That elevated shares to the top of the Footsie risers board, up 4.5p at 111.5p.
The improvement by ITV bettered a 2% surge from GUS after the Argos-to-Homebase retailer posted its Christmas sales figures.
The performance of Argos revealed slower growth but investors took more notice of a better-than-expected showing by the company’s credit checking business Experian. Shares were 26p stronger at 931p as analysts summed up the third quarter update as “reassuring”.
Dixons impressed the market with its figures yesterday and got a further lift from the GUS statement as shares in the Currys owner cheered 3.5p to 160.5p. B&Q owner Kingfisher added 4.75p to 307.25p.
There was also cheer for Sainsbury’s after the ailing retailer offered a flicker of encouragement in its Christmas trading statement. With like-for-like sales down only 0.4% in December, shares rose 1% or 3.25p to 268p.
The banking sector provided the main drag on the top flight with HBOS 7.5p lower at 852.5p and Northern Rock down 3.5p at 786.5p.
The falls came as analysts continued to fret about the future direction for interest rates. The Bank of England kept the cost of borrowing at 4.75% today, but weak output figures from manufacturing left the next move hard to call.
In the US, the Dow Jones Industrial Average was 48 points adrift after London’s close as oil prices climbed for a third day, lifting more than a dollar to just under 48 dollars a barrel.
Elsewhere, Carphone Warehouse said a strong Christmas would leave profits ahead of expectations. The news sent shares soaring almost 8% or 12p to 170p.
Baker Greggs was another festive winner, adding nearly 4% or 139p to 3900p after figures defied its earlier expectations for a slowing in Christmas sales growth.
Jeweller Signet group put on 4% or 4.75p to 111p after saying an advertising blitz and strong diamond demand had boosted Christmas sales figures.
Bloomsbury Publishing was also in the black, lifting 2p to 312.5p after reporting strong fourth quarter sales.
Biggest risers included ITV, up 4.5p to 111.5p, Corus Group gaining 1.5p to 52.5p, GUS lifting 26p to 931p and Hilton adding 7.5p to 288.5p.
Largest losers were Man Group, down 28p at 1362p, Xstrata losing 13.5p to 870p, 3i shedding 6.5p to 657.5p and Vodafone weakening 1.25p to 139.25p.
