FTSE 100 close: Retailers lead Footsie higher
The FTSE 100 Index moved higher today as investors gave a cautious welcome to more upbeat corporate and economic news.
On the up? The Footsie hopes to make up lost ground today
The Bank of England's surprise decision not to expand its quantitative easing programme was taken as a sign that an ailing UK economy was in no need of further immediate aid.
The London market has finished in the red every day this week but added 13.8 points to 4,154.1 by the close.
US markets opened slightly higher, while the Bank decision sent the pound more than 1% higher against the dollar.
Miners led the Footsie risers board but broker upgrades for a number of major retailers helped the sector post gains, including a 3% rise for Marks & Spencer, fresh from its survival of a shareholder protest at yesterday's annual meeting in London.
M&S - up 6.75p to 313p - was joined among the leaders by Home Retail Group, owner of Argos and Homebase, after upgrades from broker Citi. Home gained 6.5p to 266.5p, while Next was also benefiting, up 38p at 1569p.
However, Primark parent Associated British Foods lost 2p to 763p despite a positive report from the fast fashion clothing chain.
The group, which also owns the brands Twinings, Kingsmill and Silver Spoon, said Primark's improvement in the 40 weeks to June 20 reflected store expansion and 'excellent' growth in like-for-like sales.
Much of the recent movement in the London market has been driven by commodity stocks. Miners surged up the risers board today with Fresnillo leading the way, up 10% or 44.5p at 487p. Citi brokers upped their rating on the stock to buy following a review of the precious metals sector.
Other firms in the sector making progress included Xstrata and Anglo American, which added 22.7p to 609.8p and 87.5p to 1651p respectively.
Meanwhile, more broker activity helped insurer Legal & General gain 1.51p to 51.29p or 3% after Morgan Stanley lifted its recommendation to overweight. Admiral - rated a buy by Bank of America - joined it on the risers board with a gain of 22.5p to 887.5p.
A leading Footsie faller was oil explorer Cairn Energy, which fell 39p to 2098p despite Credit Suisse raising its target price. Nomura began coverage of the stock earlier this week with a 'reduce' rating.
TOMORROW'S AGENDA
• Bovis Homes, the housebuilder, follows its rivals Persimmon, Barratt Developments and Redrow in updating the City on trading. UBS reckons that the statement, covering the first half, will suggest that the market is starting to stabilise. Analysts predict a pre-tax loss of £4.9m, and that Bovis will say it is on track with plans to cut its debts.
But they warn that the company is likely to write down the value of its land bank once again this year. This week has provided signs of a slight improvement in the residential property market, with Persimmon saying that sales are picking up and that values are stabilising in some parts of the country.
Royal Bank of Scotland's analysts say that Bovis is well-placed to take advantage of more stable conditions in the housing market, and this week upgraded the stock from sell to buy. Housebuilders are said to be releasing homes very slowly to avoid flooding the market with new properties and stop the decline in prices.
• John Lewis, the High Street bellwether, releases its weekly sales figures. Last week, the department stores group said that sales fell 3.7% as shoppers shunned its stores shopping because of the warmer weather and Wimbledon. But sales at the partnership's supermarket chain Waitrose jumped 10.1% as people stocked up on picnic products.
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