The FTSE 100 Index drifted into the red yesterday despite continuing optimism over many blue-chip retail stocks.

The likes of Marks & Spencer and Next were helped by healthy halfyear figures from department store chain Debenhams, giving some grounds for cheer from the high street.

The FTSE 100 was in positive territory for much of the day, but eventually closed 12.4 points lower at 4018.2 as disappointing jobs figures from the US offset upbeat corporate news and sent Wall Street’s Dow Jones Industrial Average lower.

Despite the wider market fall, retailers maintained their recent rally a day after broker Citigroup reviewed its position in the sector with a series of price upgrades.

With WH Smith also reporting solid half-year results, the signs of a return in consumer confidence meant top-flight fashion retailer Next rose 94p to 1529p and Argos firm Home Retail Group added 15p to 279p.

M&S improved 10.75p to 340p and B&Q owner Kingfisher cheered 4.5p to 179.3p.

Debenhams set the pace in the FTSE 250 after it announced a 10.7 per cent rise in half-year profits and said like-for-like sales were up 1.9 per cent.

Shares jumped 22 per cent or 13.75p to 77.25p as analysts suggested that the strong trading figures reduced the need for the company to carry out a rights issue.

WH Smith shares were ahead 5p to 415p as investors welcomed a 17 per cent rise in the company’s dividend payment, alongside optimistic comments from chief executive Kate Swann.

Back in the top flight, shares in testing and inspection firm Intertek were soaring amid speculation of possible bid interest.

Shares were almost ten per cent or 78p higher at 1004p