Footsie ends week on a high
The FTSE 100 Index ended the week within touching distance of a new four-year high today as retail stocks lifted spirits.
Supermarkets and famous names like M&S were among the biggest risers as investors welcomed signs of a much-needed upturn on the high street.
With stocks across the Atlantic also doing well by closing time in London, the Footsie ended 36.3 points higher at 5531.6. It would have had to close above 5538.8 to set a new four-year high.
Recent signs of a pick-up on the high street boosted a number of stocks, with supermarket group Sainsbury’s one of the day’s top performers, adding 7.5p to 305.5p, and Morrisons up 4p to 188p.
Argos owner GUS was among other climbers in the sector, adding 17p to 1019p. This was despite a downgrade from broker ING – although GUS remained its second favourite UK retail stock.
B&Q firm Kingfisher went up 5p to 239p, Dixons owner DSG International rose 3.25p to 163.75p, Next gained 31p to 1563p and Marks & Spencer edged closer to the 500p mark, up 2.25p to 489.5p.
Fund manager Amvescap was the second blue-chip riser after Morgan Stanley upgraded its rating from “equalweight” to “overweight”. Shares in the company were up almost 4% or 15.5p to 436p.
It was followed higher by banking firms Northern Rock, which was up 30p at 925.5p, and Alliance & Leicester – ahead by 16.5p at 959p. Lloyds TSB was another riser, gaining 4.5p to 483.5p.
Centrica was in good shape after plotting fresh cost cuts and slowing the rate of customer desertions from its British Gas arm. Shares in the UK’s biggest power supplier lifted 5p to 243.5p.
But cruise operator Carnival was the heaviest faller as investors expressed concern at its outlook despite news of a 20% rise in fourth quarter net profits. The stock fell 76p to 3150p.
Mobile phone giant Vodafone weakened 1.75p to 123.5p after downbeat comments on the stock from broker Bear Stearns.
Smiths Group and Land Securities were both 7p lower at 1013p and 1652p respectively as investors took profits after recent gains.
Housebuilders were in focus outside the top flight after Persimmon predicted sales of around £2.3 billion this year, which would be an increase of 8% on 2004.
Shares in Persimmon cheered 37.5p to 1229.5p and there were also gains for rival Barratt Development, up 7p at 948p.
Casino operator London Clubs International cheered investors with news of a strong pick-up in trading as it recovered from the impact of the July bombings in the capital. The stock advanced 2% or 2.75p to 136.75p.
The highest Footsie risers today were Daily Mail & General Trust up 31p to 746.5p, Amvescap rising 15.5p to 436p, Northern Rock up 30p to 925.5p and Reckitt Benckiser up 55p to 1855p.
The heaviest fallers were Carnival down 76p to 3150p, Vodafone losing 1.75p to 123.5p, Whitbread down 10p to 936p and P&O off 4p to 466p.
