Figures showing a disappointing month for job creation in the American economy failed to derail the London market yesterday as the FTSE 100 Index finished the week near to the 6,000 barrier. The top flight closed up 14 points at 5,997.4, helped by a strong performance from water companies after signs that the UK’s inflationary bubble will boost results.
Earlier in the day it had pushed above the 6,000-mark but slipped back again after the US government revealed that 36,000 new non-farm jobs were created last month, which was far below analysts’ expectations of 140.000.
The pound was down against the dollar, at $1.60, despite the disappointing jobs figures, while sterling rose against the euro, at €1.19, after the latest survey by the Halifax showed a 0.7 per cent rise in house prices in January, offsetting a sharp fall in December.
Severn Trent and United Utilities showed strong growth in the UK’s top-tier, both rising four per cent after Bank of America Merrill Lynch introduced buy ratings on the pair to reflect higher inflation. Severn was up 50p to 1440p and United lifted 24p to 579p.
Second-tier stocks Pennon and Northumbrian Water were raised to neutral from underperform, helping them rise 4.5p to 621.5p and 5.6p to 314.1p respectively.
Oil giant Royal Dutch Shell extended the three per cent loss seen in the previous session with a one per cent fall, down 32.5p to 2145p, after its fourth quarter profits and production performance left investors cold on Thursday. Other energy stocks remained in the red, with BG Group off 5.5p to 1429p.
Cairn Energy was the biggest Footsie faller, down 11.7p to 426.3p, after reports that Vedanta Resources was considering pulling out of a deal to buy a majority stake in Cairn India.
And Thomson owner TUI Travel remained under pressure due to the impact of Egypt’s civil unrest on the holiday plans of thousands of customers. Shares dropped another 2p to 241p.
Outside the top flight, ITV surged 4.7p to 84.1p, as Tuesday’s bullish statement on advertising revenues from RTL, Europe’s largest free-to-air broadcaster, continued to have a positive impact on the stock ahead of its results in March.
And retailer HMV rose nine per cent or 2p to 24.8p, boosted by speculation that private equity and former retail bosses are eyeing the business for takeover.
Superdry fashion label SuperGroup was likewise on the rise, ahead 12 per cent after a 180p rise to 1710p, as the market gave the thumbs up to its deal to buy out European franchise partner CNC Collections.
Retail rival French Connection soared 23 per cent – up 15.8p to 84.8p – after the company said its profits for the year would be at least £6.8 million, which was comfortably ahead of City expectations and its own previous guidance for profits between £2.6 and £5.1 million.
The top Footsie risers were Old Mutual up 6.3p at 133p, United Utilities ahead 24p at 579p, Severn Trent up 50p to 1440p and International Power ahead 13.9p at 427p.
The top Footsie fallers were Cairn Energy down 11.7p to 426.3p, Antofagasta off 33p to 1491p, Royal Dutch Shell B off 32.5p at 2145p and Essar Energy down 7.5p at 520.5p.