Market report: Thursday close

By MICKEY CLARK FOR MAILONLINE
Updated:

 

LONDON shares gave up the chance to move beyond the 4500 barrier today despite relief at interest rates remaining on hold.

The FTSE 100 Index racked up gains of 30 points in the hour following the announcement by the Bank of England, but slipped back to close the session 21 points higher at 4489.7.

Trading volumes had been slim in the final session before the London market closed for the Easter break and corporate news was thin on the ground.

Investors were boosted by the decision to keep the cost of borrowing at 4%, which also eased pressure on sterling, enabling the currency to retreat from close to a new 14-month high.

But a weak opening on Wall Street provided the excuse to bank profits, with the Dow Jones Industrial Average just 20 points higher in early trading.

Strong first quarter results - announced after the bell in New York - from internet company Yahoo, did not appear to have lifted sentiment across the Atlantic greatly.

Retailers propelled the Footsie higher, with Dixons second on the risers board, up more than 4%, or 6.25p to 152.25p.

The electricals group was followed by Tesco, cheering 10p to 251p, while Next Group rose 45p to 1407p, Kingfisher was 6p stronger at 285p and Argos owner GUS lifted 17.5p to 757.5p.

However, high street giant Marks & Spencer found itself at the top of the fallers board, down 8p to 275.25p following a broker downgrade ahead of next week's trading statement.

Rolls-Royce was the biggest riser with a gain of 5% or 11p to 231.25p following yesterday's announcement that it had been selected by Boeing to supply engines for the new 737 Dreamliner.

Elsewhere in the aerospace sector, BAE Systems progressed 4p to 215p after it said another 1,000 job cuts would take place over the next two years.

The defence group said the redundancies would be within its air systems division.

But bookmaker William Hill was a faller on its FTSE 100 debut, replacing medical imaging group Amersham. Shares in the firm slipped 2.25p to 517p

Supermarket group Sainsbury rose 0.5p to 274.25p after it was reported that plans to buy TM Group - owner of the Martins and Forbuoys chains - have been scaled back.

The absence of major announcements from market heavyweights gave the minnows a chance to shine.

Channel Tunnel operator Eurotunnel was on the back foot following yesterday's ousting of the entire board by investors.

Shares gave back last night's gains to fall more than 10% or 4p to 34.75p.

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But chocolate maker Thorntons cheered more than 7% - 10p to 150p - after naming a new chairman to take over from John Thornton, a member of the founding family.

The day's biggest risers in the Footsie were Rolls-Royce up 11p to 231.25p, Dixons cheering 6.25p to 152.25p, Tesco rising 10p to 251p and 3i Group 21p ahead at 621p.

The heaviest fallers were Marks & Spencer down 8p to 275.25p, GlaxoSmithKline losing 16p to 1108p, Cable & Wireless falling 1.75p to 126.75p and AstraZeneca off 34p to 2596p.

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