Retail stocks rally FTSE slow-starters
Retail stocks rallied the London market today as the FTSE 100 Index recovered from a difficult start to the week.
Shares recovered some of the weakness seen on Monday, helping the Footsie up 45 points to 6323.7 by mid-morning.
Traders took steady UK inflation figures in their stride, with the rise in the cost of living remaining at 2.1% last month.
Leading the FTSE 100 Index’s recovery was Currys owner DSG International, which lifted 4.5% or 4.5p to 104.5p – a timely boost for new chief executive John Browett as he prepared to meet analysts for the first time later today.
Shares in under-fire Northern Rock were also among the best performers, up more than 4% or 3.9p to 95.3p.
The rise came as Bank of England governor Mervyn King defended his handling of the Northern Rock crisis in front of the Treasury select committee. The Treasury also announced it had agreed to cover more of the bank’s liabilities following a request from the lender.
B&Q owner Kingfisher followed with a gain of 4.5p to 152.2p and Next added 25p to 1627p.
And Argos owner Home Retail Group, which was the session’s biggest faller yesterday, recovered to stand nearly 3% higher, up 8.75p at 319.75p.
Internet auction house Tradus set the pace in the FTSE 250 Index after African media company Naspers agreed to buy the business for £18 a share.
Shares in Tradus, formerly known as QXL Ricardo, were up 13.25% or 215p to 1835p after directors agreed to recommend the offer.
Debenhams was also performing well after it was reported that the buyer of a 7% stake in the company had links to retail entrepreneur Mahesh Jagtiani.
Shares hit a low yesterday but were up 8.25p at 83.75p.
Temporary power supplier Aggreko rose 28.75p to 474.75p, a gain of 6.5% after upgrading results forecasts in a trading update today.
