London close: Footsie slides on M&S figures
Marks & Spencer's dire third quarter figures condemned the Footsie into the red as other retailers also slumped in sympathy.
M&S confirmed the rumours of a grim Christmas with UK like-for-like sales down by 2.2% in the 13 weeks to 29 December. General Merchandise sales fell 3.2% like-for-like, while food dropped by 1.5%.
"Market conditions became more challenging through November and December," chief executive Stuart Rose said, adding, "We expect trading conditions to remain tough throughout 2008." He told BBC Radio 4 "Today" programme, "We are battening down the hatches a bit."
Carphone Warehouse, Next and Home Retail Group posted strong losses on the back of the news, while Tesco and Sainsbury's, which announces quarterly results tomorrow, also traded nervously.
Housebuilder Persimmon was on the ropes despite forecasting strong results for the year, as it revealed that volumes fell 5% due to a weaker autumn period. Taylor Wimpey's exposure to the crumbling US market means it was among the most heavily sold.
Tour operator and cruise group TUI Travel added to the gloom as its parent TUI announced a fund raising of up to €500m though the issue of equity backed bonds in its travel arm. Thomas Cook was also a heavy faller.
But Credit Suisse lifted price targets on GlaxoSmithKline, AstraZeneca and Shire, giving the drug majors a boost. It expects the defensive qualities of the pharmaceuticals sector to attract investors amid continuing economic uncertainty.
Shares in BP slid amid rumours it is asking analysts to reduce their earnings forecasts for the company for the last quarter of 2007 but miners rallied with Lonmin and Kazakhmys going well.
Bus and train firm FirstGroup continued to make good progress during the third quarter and said overall trading is in line with expectations.
Down a division, bakery chain Greggs reports like-for-like sales in the second half to 29 December increased by 5.8%, giving overall growth in like-for-like sales for the year of 5.3%. The like-for-like sales increase over the Christmas and New Year trading period, comprising the four weeks to 5 January 2008, was broadly in line with this at 5.6%.
Not so good for Restaurant Group, which has been hammered after warning sales growth has slowed sharply following a very strong like-for-like sales performance for the first three quarters of 2007. Like-for-like sales growth in the final quarter of 2007 was 1% compared with 7% this time last year.
JJB Sports has settled its long-running legal dispute with consumer group Which? over price-fixing of replica Manchester United and England football shirts.
Japanese biometrics fingerprint authentication firm Secure Design lost more than half its value as it warned that full year revenue and profit will fall well short of expectations.
Shares in Chromogenex jumped 20% after the medical and cosmetic laser manufacturer released a bullish trading update and announced the appointed of a new CEO.
FTSE 100 - Risers
Lonmin (LMI) 3,380.00p +3.62%
BAE Systems (BA.) 507.00p +3.05%
AstraZeneca (AZN) 2,301.00p +3.00%
Shire (SHP) 1,171.00p +2.81%
Prudential (PRU) 687.50p +2.46%
Rolls-Royce Group (RR.) 528.00p +2.23%
Legal & General Group (LGEN) 130.10p +2.20%
British American Tobacco (BATS) 2,007.00p +1.98%
FirstGroup (FGP) 714.00p +1.85%
GlaxoSmithKline (GSK) 1,385.00p +1.76%
FTSE 100 - Fallers
Marks & Spencer Group (MKS) 409.25p -18.72%
TUI Travel (TT.) 218.75p -14.22%
Carphone Warehouse Group (CPW) 299.75p -11.32%
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Kingfisher (KGF) 115.30p -8.64%
InterContinental Hotels Group (IHG) 724.50p -6.58%
Home Retail Group (HOME) 268.50p -6.04%
Admiral Group (ADM) 1,002.00p -6.00%
Experian Group (EXPN) 372.75p -5.99%
Thomas Cook Group (TCG) 231.00p -5.91%
Rentokil Initial (RTO) 107.90p -5.85%
FTSE 250 - Risers
Imperial Energy Corporation (IEC) 1,755.00p +12.28%
Forth Ports (FPT) 2,011.00p +5.90%
Randgold Resources (RRS) 2,086.00p +5.25%
Tate & Lyle (TATE) 437.25p +3.92%
JKX Oil & Gas (JKX) 430.00p +3.74%
Aggreko (AGK) 506.00p +3.21%
Misys (MSY) 170.00p +2.87%
Tullett Prebon (TLPR) 443.25p +2.25%
Northumbrian Water Group (NWG) 349.00p +2.20%
Morgan Crucible (MGCR) 196.25p +2.08%
FTSE 250 - Fallers
Restaurant Group (RTN) 119.00p -31.90%
Debenhams (DEB) 63.75p -11.15%
Brown (N.) Group (BWNG) 205.00p -10.68%
Galiform (GFRM) 69.50p -10.03%
Galliford Try (GFRD) 79.50p -9.92%
Aga Foodservice Group (AGA) 300.00p -9.57%
Signet Group (SIG) 54.25p -9.21%
Keller Group (KLR) 524.50p -8.70%
Capital & Regional (CAL) 329.50p -8.22%
easyJet (EZJ) 423.75p -7.93%
