Press Association
Sunday 12th February 2012
Global economic concerns hit stocks and offset strong gains from blue chip retailers on London's leading share index.
A profits upgrade from Argos and Homebase owner Home Retail Group helped retailers make strong advances.
But the wider FTSE 100 Index slipped into the red - closing down 23.3 points at 5617.3 - as a sharp rise in Chinese inflation raised fears that officials could slam on the economic breaks and dent a global recovery.
The potential impact on growth prospects put a raft of heavyweight mining stocks under pressure, led by Kazakhmys which fell 3% or 49p to 1496p.
Wall Street's Dow Jones Industrial Average also dipped in early trading after mixed jobs data, weighing further on the London market. The pound at least had a better day and crept above 1.50 against the dollar.
The main cheer in an otherwise lacklustre session came from the retail sector. Home Retail made its second increase to guidance in less than three months, causing its shares to rise by 4.2p to 272p.
Analysts said cost cuts and better than expected margins at the Argos business lay behind the upgrade to £290 million for the year to the end of February.
And while Home Retail's sales were under pressure due to the weather, other retailers drew encouragement from the figures as Marks & Spencer lifted 4.6p to 353.7p, Next added 42p to 2020p and B&Q owner Kingfisher rose 7p to 223.7p.
They were joined on the risers board by Thomas Cook after the travel giant's investor day prompted analysts at Panmure Gordon to maintain their positive stance on the blue-chip stock. Shares were 7.7p higher at 248.1p.
Elsewhere, shares in Friends Provident owner Resolution rose 0.1p to 73.6p despite it losing its place in the FTSE 100 Index following the latest reshuffle. The business, which floated in 2008, will be replaced by Investec, down 9p at 530p. The change is due to take place at the end of this month.
