LONDON’S market posted strong gains yesterday despite a tough session for the retail sector after the owner of catalogue chain Argos issued a gloomy warning over high street trading.
The wider FTSE 100 Index rose by 47.5 points at 5856.3 as resources companies led the market higher, with oil companies buoyed by yesterday’s stalemate at producer’s cartel Opec over an increase in official production levels.
Rising oil prices – Brent crude stood 0.2 per cent higher at $117 (£71) a barrel – lifted the oil and gas sector.
BP was up 5.9p at 450p, Cairn Energy was 2.9p ahead at 424p and Petrofac advanced 17p to 1544p.
Worries about the UK economy resurfaced after FTSE 250 Index company Home Retail Group, which also owns Homebase, revealed a 9.6 per cent decline in like-for-like sales at Argos over the 13 weeks to May 28, sending its shares sliding by 13 per cent or 25.8p to 176.5p.
JD Sports Fashion added to the uncertainty by reporting a deterioration in like-for-like sales, but said this was partly down to tough comparisons with the lead-up to the World Cup last year. Shares were 51.5p lower at 932p, a fall of five per cent.
But Halfords bucked the trend by reporting a strong start to its new financial year, with like-for-like sales up 0.8 per cent after the weather boosted demand for bicycles. Shares jumped three per cent, or 11p to 408.5p.
Lloyds Banking Group hit the top of the fallers’ board with a drop of nearly two per cent after reports said the bank was considering setting up a separate bank and floating it on the stock market if an auction of 600 branches fails. Shares were down 0.9p at 47.8p.
Engineering group Weir topped the risers’ board after reports said Chinese authorities have issued £1m fines to two companies making illegal copies of Weir pumps. Shares were up 94p at 2050p.
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