SUPERMARKET Morrisons and Argos owner Home Retail Group were among retailers enjoying share gains yesterday after a string of robust figures from the sector.

The FTSE 100 Index edged 0.6 points higher to close at 6589 amid continued speculation about whether the US Federal Reserve will begin tapering asset purchases next week and ongoing caution over the Syrian crisis.

The announcement that Royal Mail will be privatised in the coming weeks was also in sharp focus.

Retail investors will be able buy shares at a minimum of £750 and can apply through intermediaries or direct by post or online.

In the top flight, Morrisons rose two per cent or 5.3p to 302.5p after chief executive Dalton Philips said like-for-like sales were steadily improving as the company’s turnaround plan starts to bear fruit.

But half-year profits at the UK’s fourth-biggest grocer still dived 22 per cent to £344m as it continues to count the cost of past under-investment in convenience stores and online retailing.

Rival Sainsbury’s was also higher, up 4.7p to 400.8p.

In the FTSE 250, shares in Home Retail Group set the pace after favourable weather drove an 11 per cent jump in like-for-like sales at its Homebase chain.

Argos, which is part of the same group, was 2.7 per cent higher in the 13 weeks to August 31.

But shares in oil and gas engineering group Kentz Corporation saw shares tumble nine per cent or 50.5p to 499p after it said Amec was no longer interested in bidding for the company.

Amec tabled an unsuccessful approach worth £690m last month and its shareholders were relieved that the company will not be drawn into a bidding tussle. Shares in the FTSE 100 Index company climbed 20p to 1078p.