FTSE nearing 8,000 after record high

Market report Emma Newlands

The Christmas sparkle came off retail stocks after Marks & Spencer posted steep falls in food and clothing sales.

M&S was the biggest faller on the top flight, as it pinned the blame on mild October weather for a 2.8 per cent fall in like-for-like clothing and home sales in the 13 weeks to 30 December. Shares were down 22.8p to 301.2p. Next, and Primark-owner Associated British Foods also fell foul of a wider sell-off of retail stocks - down 77p to 4,963p and 23p to 2,818p respectively.

However, the FTSE 100 Index still hit a fresh record high, rising 14.43 points to 7,762.94.

On the currency markets, the pound enjoyed a lift at the expense of the US dollar’s weakness, pushing 0.2 per cent higher at $1.353.

However, sterling was enduring a rockier ride against the euro, slipping 0.5 per cent to €1.124. In UK stocks, Tesco was among the biggest fallers despite reporting a solid rise in sales over the critical Christmas trading period. Its shares tumbled 9.6p to 202.3p. Supermarkets Morrisons and Sainsbury’s also suffered in the wake of the slump, drifting down 3.3p to 226.2p and 5.3p to 248.6p respectively.

However, takeaway firm Just Eat enjoyed a stellar session, finishing the day as the biggest riser following a broker upgrade from Barclays. Shares were up 36.2p to 803.8p.

The biggest risers on the FTSE 100 Index included Easyjet, up 57.5p to 1,536.5p, and Bunzl, up 45p to 2,050p. The biggest fallers included Barratt Developments, down 17.2p to 617p after a broker downgrade, and Barclays, down 5.1p to 196.1p. Shares in AO World rose after the online electricals retailer reported rising third-quarter sales, with UK revenue growing by 11.4 per cent. The greeting cards firm warned that its annual profits were likely to come in lower than the year before as it faces “continued margin pressure”.