FTSE close: BSkyB up; Next, M&S down

 

17.10 (close)

Dealers monitor their screens on the trading floor of IG Index in London

Market watcher: Commodity related stocks topped the leaderboard.

Shares pressure in the retail sector weighed on the FTSE 100 Index today as a mixed session on Wall Street also hit stocks.

High street chains Next and Marks & Spencer led the retail declines as investors reacted to a worse-than-expected update from Sweden's H&M after a fall in profits due to higher cotton prices.

Trading on the wider FTSE 100 Index was also lacklustre, closing down 4.1 points at 5965.12, following yesterday's surge.

Wall Street's Dow Jones Industrial Average was struggling to make headway after the US Labor department said the number of workers filing new claims for unemployment benefits unexpectedly surged last week by 51,000 to 454,000.

This offset earnings joy from the likes of Caterpillar and Time Warner and impacted sentiment in London.

The pound eased back after strong gains yesterday following news that two Bank of England policymakers voted for a rate hike in January.

Sterling fell to 1.59 dollars and 1.16 euros today.

Among stocks, Next fell 3%, or 57p to 2028p. The group was followed by rivals M&S down 5.3p to 360.7p and AB Foods off 12p to 1087p as disappointing January retail sales figures from the CBI added to the H&M result.

But BSkyB shares rose 1% as strong half-year results heaped more pressure on Rupert Murdoch's News Corp to seal a deal for the broadcaster.

With BSkyB posting a 26% rise in half-year operating profits to £520m, shares rose 5p to 762.5p and are well above the 700p proposed by NewsCorp in the summer before it embarked on its quest for regulatory approval.

Pharmaceuticals giant AstraZeneca failed to hold on to gains, closing down 31.5p to 3042p despite reporting a smaller-than-expected drop in fourth quarter profits of 5% to 2.7bn US dollars (£1.7bn).

It warned of a challenging few years for the industry, but Astra said it continued to plan for annual revenues in the range of 28 billion dollars (£17.7 bn) and 34bn dollars (£21.5 bn) over the 2010 to 2014 period.

Outside the top flight, shares in pub companies were on the front foot after Harvester owner Mitchells & Butlers kicked off the sector's reporting season with bumper sales figures for Christmas and New Year.

Like-for-like sales jumped 6.7% in the key 12-day trading period and helped the All Bar One firm to overcome weather disruption in the early part of December. M&B's shares were 14.2p higher at 357p as it revealed a 2.5% rise in like-for-like sales for the nine weeks to January 22.

There was a knock-on effect for other pub companies as Greene King, which is due to report figures on Monday, lifted 9p to 456.7p and Marston's added 2.3p to 103.8p ahead of its own trading update on Friday.

The biggest Footsie risers were Old Mutual ahead 5.7p to 131.1p, Aviva up 17.6p to 452.5p, Legal & General up 3.3p to 112.8p and Prudential up 20.5p to 704p.

The biggest Footsie fallers were Next down 57p to 2028p, International Consolidated Airlines Group down 7.4p to 270.4p, BAE Systems off 8.4p to 347.2p and Carnival down 70p at 2930p.

15.10: The Dow Jones has opened flat after an unexpected rise in weekly jobless claims and a decline in durable goods orders in December.

The US index was down 1.1 points at 11,984.3 as the gloomy economic news offset strong earnings from construction equipment maker Caterpillar.

The Footsie is still in the black, up 16.2 points at 5,985.4.

We have coverage of TUI Travel's latest trading update, which revealed a 1% downturn in recent winter bookings in the UK due to December's snowfall and the cancellation of flights to Tunisia.

The tour operator's stock is up 0.6p at 271.9p.

13.45:

The FTSE 100 is making gradual progress today, up 18.73 points to 5987.94.

Over on Wall Street, the Dow Jones is seen by the futures markets as opening flat, or slightly lower, when the exchange opens in an hour or so.

12.45:

Lunchtime update - The FTSE 100 is trading 10.1 points higher at 5,979.3.

We have more on AstraZeneca's fourth quarter results, and its cautious forecast for the next few years. The shares are up 37.5p at 3,111p.

High Street chain Next led the FTSE 100 fallers board as investors reacted to a worse-than-expected update from Sweden's H&M after a fall in profits due to higher cotton prices.

Next fell 2%, or 42p to 2043p, while Marks & Spencer dropped 2.9p to 363.1p and Primark owner Associated British Foods fell 8p to 1091p.

Mitchells & Butlers' upbeat figures have had a knock-on effect on other pub companies.

M&B's shares were 17.5p higher at 360.3p. Greene King, due to report figures on Monday, lifted 18.4p to 466.1p. And Marston's added 1.6p to 103.1p ahead of its own trading update on Friday.

US futures trading points to a mixed open on the Dow Jones as investors wade through a deluge of earnings updates. Japan's downgrade is also in the spotlight, and weekly jobless claim numbers are due out later.

11.20:

Here's some more detail on a couple of the bigger stories breaking today.

Japan suffered a downgrade to it credit rating by Standard and Poor's after the ratings agency said the Japanese Government lacked a 'coherent strategy' for dealing with its debts. There's more on that here.

And BSkyB has reported a 26% jump in profits, with ramifications for the News Corp bid to buy the broadcaster. BSkyB shares are 15.05p, or 2%, higher at 773p. More detail here.

Overall today the FTSE 100 is 15 points higher at 5984.2.

10.00:

The FTSE 100 has struggled to make any headway despite gains among the miners, and with newsworthy BSkyB higher on a rise in profits.

The blue chip index seesawed in early trade and was 5.05 pints higher at 5964.16 by 10am.

BSkyB continued to dominate the headlines in the City today after another strong set of results from the satellite broadcaster increased the pressure on Rupert Murdoch's News Corp to hike its offer for the group.

With BSkyB posting a 26% rise in half-year operating profits to £520m, shares rose another 7p to 764.5p and are well above the 700p proposed by NewsCorp in the summer before it embarked on its quest for regulatory approval.

Commodity related stocks topped the leaderboard on a combination of firmer metals and oil prices, and strong results.

Randgold Resources headed that list, up 276p, some 6%, to 5,015p, with Fresnillo, up 68p (5%) to 1,398p.

Asian markets were mixed as Japan reported accelerating export growth but expectations remained that China was gearing up for another interest rate hike to dampen economic growth.

The big global economy news was a downgrade by S&P to Japan's credit status to AA-.

Other risers in London included pharmaceuticals giant AstraZeneca after it reported a smaller-than-expected drop in fourth quarter profits of 5% on a year earlier to $2.7bn.

Outside the top flight, shares in Harvester owner Mitchells & Butlers jumped 4% as it said a bumper Christmas trading period helped it overcome weather disruption in the early part of December.

Shares were 14.6p higher at 357.4p as it revealed a 2.5% rise in like-for-like sales for the nine weeks to January 22.

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