Reassuring retail results help lift FTSE

Market report Scott Reid

London’s benchmark share index was given a lift by a combination of solid retail sector results and a softer pound following weakerthan-expected wage data.

Primark owner Associated British Foods (ABF) led the charge, rising by more than 4 per cent as it shrugged off the gloom surrounding the retail sector.

UK sales at Primark were up 3 per cent on a like-for-like basis in the six months to 3 March. ABF said this performance was “remarkable” amid difficult conditions, and reassured investors that profit growth would ramp up in the second half. Shares climbed 107p in the session, closing at 2,690p.

The FTSE 100 index closed up 27.85 points, or about 0.4 per cent, at 7,226.1.

David Madden, market analyst at CMC Markets UK, said: “European markets are higher as traders are less worried about the state of global politics. Traders are viewing no more bad news as a positive, and are keen to buy back into the stock market.”

In morning trading, the pound hit its highest level against the dollar the since the Brexit vote, rising 0.2 per cent to $1.435.

However, sterling lost ground after data showed average earnings increased 2.8 per cent in the three months to February – whereas analysts had expected earnings to rise 3 per cent.

Traders also took a shine to JD Sports, which reported a 24 per cent rise in pre-tax profits to £294.5 million for the year to 3 February. Shares jumped as much as 8 per cent higher at one stage, and ended the day up 5.2 per cent or 18.4p at 371.3p. Boss Rowan Gormley said the core business was on track to meet a 2019 sales target of £500 million and market expectations for profits in 2018. Shares in the Scots oil and gas explorer and producer cooled despite equities researchers at Peel Hunt reiterating a “buy” rating.