FTSE sparkles as gold prices head upwards

Market report Emma Newlands

London’s top-flight index edged back into positive territory, but struggled for momentum after the pound pushed ahead on the latest inflation data.

The FTSE 100 Index closed up 16.56 points to 7,365.5, with precious metals stocks pulling the market higher following a jump in the gold price by 1.2 per cent to $1,271 per ounce.

Randgold Resources lifted 350p to 7,580p, and Fresnillo booked a 69p rise to 1,652p, after the price of gold climbed amid simmering political tensions between the United States and Russia. However, sterling stopped the London market from rising any higher after March’s inflation data inspired a healthy jump from the pound. The currency was 0.5 per cent ahead versus the US dollar at $1.248 and 0.3 per cent up on the euro at €1.176 after the consumer price index held steady at 2.3 per cent last month. In UK stocks, second-tier retailer JD Sports was in the ascendency after a reporting a record set of annual results.

Shares in the FTSE 250 firm jumped more than 8 per cent to 440.1p, as pre-tax profits rose by 81 per cent to £238 million in the year to 28 January, while revenue grew 31 per cent to £2.3 billion. Like-for-like sales expanded 10 per cent over the period and executive chairman Peter Cowgill said that in spite of rising inflation, the firm is well-placed for growth.

The biggest risers on the FTSE 100 Index included Easyjet, up 22p to 1,078p, and International Consolidated Airlines Group ,up 10.5p to 539p. The biggest fallers included Royal Bank of Scotland, down 4.5p to 234.5p, and Hikma Pharmaceuticals, down 27p to 1,919p. Shares in the British banknote manufacturer rocketed after it said full-year profits are set to come in above the top end of market expectations. The critical comms firm fell after saying the UK government is to launch a review into its takeover by China’s Hytera Communications Corp.