FTSE closes at 6270.8

Last Modified: 08 May 2008
Source: ITN

Reassuring news from the high street saw the FTSE 100 Index close up 9.8 points at 6270.8.

Positive updates from clothing chain Next, household goods giant Unilever and jeweller Signet Group saw their shares make strong gains and helped buoy the sector by more than 3 per cent.

Earlier, the London mood had been dampened after the Bank of England quashed hopes of a interest rate cut by keeping borrowing costs unchanged at 5 per cent.

But blue-chip retailers featured on the gainers' board thanks to Next suggesting that trading had picked up in recent days. The group's shares jumped 6 per cent, or 74p to 1302p, keeping it on course to meet forecasts for full-year profits.

Rival retailer Marks & Spencer also rose on the news, ahead 15.5p at 411p, or 3 per cent, while Argos owner Home Retail Group cheered 12.75p to 280.75p.

Unilever lifted 90p to 1752p as it successfully passed on rising costs and said underlying sales were likely to rise by more than 5 per cent this year.

At the top of the list of share risers, accountancy software group Sage leapt 15.5p ahead to 226.5p after half-year profits came in ahead of expectations and it said recurring subscription contracts would protect it in tougher economic times.

Shares in Signet Group, which trades as H Samuel and Ernest Jones in the UK, rose 5.25p to 77.25p after revealing first quarter like-for-like sales in the UK rose 5.3 per cent.

But there was little respite for airline British Airways after shares fell 3.5p to 238.5p, hit by high oil prices of more than $123 a barrel.

Enterprise Inns, the UK's second-largest pub chain with nearly 8,000 pubs, was a big loser following Wednesday's 29 per cent rise on news of Government approval to convert to a more tax efficient property status. Shares fell 11p to 499p.

Britain's up-for-sale nuclear power firm British Energy also lost ground, off 19p to 715p, after reports of bids being prepared at the lower end of analyst expectations.

And banks were under pressure after the interest rate vote, led by Barclays, off more than 2 per cent, or 12p, to 463p, and Royal Bank of Scotland, which was down 6.75p to 357.25p.

Winners: Kazakhmys, up 176p to 1914p, Sage up 15.5p to 226.5p, Lonmin up 196p to 3408p, and Next which closed 74p up at 1302p.

Losers: Carphone Warehouse, down 10.25p to 289p, British Energy down 19p to 715p, Barclays off 12p at 463p and Enterprise Inns which was 11p at 499p.

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