FTSE close: M&S, Next, RBS, Aviva up

 

A strong open on Wall Street helped the Footsie capitalise on gains already made after strong figures from M&S and Next.

London Stock exchange

Reassuring updates on trading from the two high street giants added to data showing growth in the services sectors in both the UK and the US.

The FTSE 100 closed up 70.7 points at 5,107.9, after the Dow Jones jumped 119 points in early trade to sit at 9,890.4.

America's Institute for Supply Management said service industry activity grew for a second straight month in October, while in the UK the latest services survey revealed the strongest reading since September 2007.

The London market was dented yesterday by a sharp sell-off prompted by the Treasury's details of the banking shake-up.

But it recovered some of the losses after Marks & Spencer posted forecast-beating first-half profits - £298.3m for the six months to 26 September - and a decent start to the third quarter. Shares added 6% or 20.5p to 361.5p.

Other retailing stocks were also in demand: fashion chain Next was 102p higher at 1,912p after lifting its sales forecasts for the rest of the year. The firm said the consumer climate had been 'more benign than we anticipated'.

Elsewhere in the sector Argos and Homebase firm Home Retail Group cheered 15.3p to 299.2p while B&Q owner Kingfisher was 7.6p dearer at 231.7p.

The retail sector's surge was also underpinned by the Nationwide Consumer Confidence Index - hitting its highest levels in the last two months since April 2008.

The banks had a ixed day, with investors re-evaluating the climate for the sector following the announcement of £31bn in state funding agreed for Lloyds and RBS.

Royal Bank of Scotland added 0.54p to 36.47p but Lloyds Banking Group lost 1.04p to to 86.29p.

Insurer Aviva was a major gainer, shrugging aside results that were slightly below forecast, as investors reacted positively to its solvency position. Shares were 21p higher to 400.3p.

Among the few blue-chip stocks in negative territory were index heavyweights GlaxoSmithKline and Royal Dutch Shell, down 6.85p to 1221.5p and 17.58p to 1,743p. The duo turned ex-dividend, meaning investors are no longer entitled to the latest payout.

The biggest Footsie risers were Fresnillo ahead 69p at 820p, Thomas Cook up 14.3p at 207.4p, Kazakhmys up 77p at 1197p and British Airways up 11.9p at 191.8p.

The biggest Footsie fallers were Cadbury down 11p at 766p, Lloyds Banking Group off 1.04p at 86.29p, Royal Dutch Shell down 18p at 1743p and Bunzl down 6p at 644.5p.

Housebuilders dominated the risers board in the FTSE 250 index after Taylor Wimpey said market conditions were 'significantly better' from July 1 to date than last year, with cancellation rates at 16%, against 46% in 2008. It is also looking to push through higher selling prices.

The company's shares rose 8% or 3.03p to 40p, while Persimmon added 41.03p to 424.33p and Barratt Developments lifted 15.4p to 136.3p.

WSP Group put on 5p to 300p after the building and environmental consultancy issued a trading update, which Altium Securities said contains no real glimmers of positivity.

However, the broker said its 2010 estimates remain unchanged, and it repeats its 'buy' rating on the firm, based on the attractive and well-covered dividend yield and its discount to other heavily internationalised consultants peers.

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