FTSE close: Reckitt up; retailers down

By Ed Monk for Thisismoney.co.uk
Updated: 13:36 EDT, 25 March 2011

17.30 (close)

Taking stock: Shares should rise today

US economic cheer helped maintain the recovery on the London market today as world stocks continued their bounce back from the Japanese crisis.

The FTSE 100 has now rebounded back to levels seen before the Japanese earthquake struck, closing up 19.9 points at 5900.8.

Gains were spurred on by news that the US economy grew at a faster pace than expected at the end of last year, which saw the Dow Jones Industrial Average on Wall Street rise more than 70 points in early trade.

Investors shrugged off eurozone debt woes as concerns about Portugal's worsening position overshadowed a restructuring agreement among European leaders for the financial bail-out fund.

But the euro weakened as Portugal slid further towards a financial rescue. The pound rose against the embattled single currency, to 1.14 euros.

Among stocks, entertainment chain HMV Group soared 4% or 0.75p to 17.5p, as the stricken retailer confirmed it was exploring options for bookseller Waterstone's, although it denied it had received offers for the entire group.

The move will pave the way for a possible sale of the book chain and may throw HMV a lifeline as it battles to meet the lending requirements of a bank loan.

In the top tier, Air Wick to Dettol firm Reckitt Benckiser topped the risers board, lifting 96p to 3160p after Bank of America Merrill Lynch changed its rating on the stock from neutral to buy. The upgrade also benefited rival and Hellmann's owner Unilever, which climbed 17p to 1886p.

Portugal's troubles saw Barclays edge lower, down 0.9p to 290p, given its heavy exposure to the Iberian peninsula.

Other risers included Aviva after the Times newspaper reported that the insurance giant planned to sell its RAC roadside recovery business in a deal set to raise £600m. Shares were 2.4p higher at 434p.

Retailers gave up some of the gains seen in a strong session yesterday, with Marks & Spencer down 7p at 351.1p, Next losing 24p at 2019p and B&Q parent Kingfisher off 4.6p at 256.8p.

BP held firm despite a tribunal ruling that a £10bn deal between the British oil giant and Russian government-owned Rosneft breached agreements with other BP partners. Shares rose 2.7p to 483.6p.

Outside the FTSE 100, African Barrick Gold rose 2% or 10p to 539p after delivering positive news to investors in a drilling update.

FTSE 250 housebuilders gave back some of yesterday's gains, which were triggered by news of the Government's FirstBuy direct shared equity scheme in the Budget.

Taylor Wimpey was down 1.4p at 42p, while Charles Church owner Persimmon was off 11.3p at 467.7p.

The biggest Footsie risers were Invensys ahead 11.9p to 353.1p, Reckitt Benckiser up 96p to 3160p, GKN up 3.9p to 198p and Johnson Matthey up 36p to 1881p.

The biggest Footsie fallers were Autonomy Corporation down 56p to 1586p, Resolution off 7.5p to 281.8p, ITV down 1.9p to 80.7p and Marks & Spencer down 7p to 351.1p.

15.35: The FTSE 100 is trading 36.3 points higher at 5,917.1 as the session draws to a close.

The Dow Jones is up 66 points at 12,236.5, with investors buoyed by news that GDP in the fourth quarter of 2010 had been revised upwards to 3.1%.

The previous estimate was 2.8%, and the forecast was for a new reading of 2.9%.

14.25:

The FTSE 100 is 11 points higher today at 5891.87, helped by gains on Wall Street.

The Dow Jones has opened higher and is now 39.13 points better off at 12,209.69.

13.00:

At lunchtime, the FTSE 100 is 6.57 points higher at 5887.44.

The index is struggling to end on a positive footing and cap a good week for shares. At the moment, the Footsie is 160 points ahead since Monday.

On Wall Street later, the futures markets expect the Dow Jones to rise on opening.

12.10:

We have an update on HMV's plans for its book chain Waterstone's.

The stock has made further gains and is trading up 1.5p at 18.25p.

Collectibles firm Stanley Gibbons is up 1p at 154p after reporting increased sales and profits in 2010.

The company anticipates a one-off boost from commemorative stamps and other memorabilia celebrating the marriage of Prince William and Kate Middleton, which it dubbed 'the most exciting Royal event in recent years'.

The FTSE 100 is 10.9 points higher at 5,891.8.

10.50:

Shares in HMV have risen 7% or 1.25p to 18p after the troubled retailer confirmed it was exploring options for the books chain Waterstone's.

The company, which owns 731 HMV, Waterstone's and Fopp stores, said no discussions were taking place about an offer for the whole group.

Futures trading signals a 40 to 50-point jump in the Dow Jones when it opens later.

US investors are poring over an update from technology giant Oracle, which beat earnings expecations, and a disappointing forecast from Blackberry maker Research In Motion.

The FTSE 100 is up 24.2 points at 5,905.

10.10:

The FTSE 100 has moved higher today after a positive note helped Reckitt Benckiser and Unilever, although retailers gave back some of their gains.

Investors continued to shrug off eurozone debt woes and Middle East turmoil as the FTSE 100 Index moved 21.11 points higher to 5902 - above the level seen before the impact of Japan's earthquake disaster two weeks ago.

Air Wick to Dettol firm Reckitt Benckiser topped the risers board, lifting 79p to 3143p after Bank of America Merrill Lynch changed its rating on the stock from neutral to buy. The upgrade also benefited rival and Hellmann's owner Unilever, which climbed 32.5p to 1901.5p.

Other risers included Aviva after the Times newspaper reported that the insurance giant planned to sell its RAC roadside recovery business in a deal set to raise £600m. Shares were 4.2p higher at 435.8p.

Retailers gave up some of the gains seen in a strong session yesterday, while BP slipped 1% after a tribunal ruled that a £10bn deal between the British oil giant and Russian government-owned Rosneft breached agreements with other BP partners. Shares fell 4.8p to 476.1p.

Outside the FTSE 100 Index, African Barrick Gold rose more than 3%, up 18.75p to 547.75p, after delivering positive news to investors in a drilling update.