FTSE 100 in the green after mixed day for UK retailers

The blue-chip index was 40.74 points higher, or 0.54%, at the end of the day, closing at 7,723.07.

Anna Wise
Thursday 04 January 2024 17:35 GMT
London’s FTSE 100 has moved higher after a slow start to the year (Yui Mok/PA)
London’s FTSE 100 has moved higher after a slow start to the year (Yui Mok/PA) (PA Wire)

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London’s FTSE 100 has moved higher after a slow start to the year, with fashion retailer Next soaring to the top of the blue-chip index while JD Sports shares plummeted.

The index was 40.74 points higher, or 0.54%, at the end of the day, closing at 7,723.07.

It was a “tale of two retailers” on Thursday, with Boots and Next highlighting strong festive sales, while JD Sports and Topps Tiles gave a more downbeat outlook for consumer confidence.

Michael Hewson, chief market analyst for CMC Markets UK, said: “After finishing 2023 on a strong note, and then seeing a slow start to the first trading week of 2024, the FTSE 100 has managed to post its first positive day this year, with the main gains being driven by a resilient performance from defensives as well as the energy sector. 

“The main story on the UK blue-chip index today has been a tale of two retailers, with Next shares pushing up to new record highs, after upgrading its profits guidance for the fifth time in the last 12 months.”

Next was the day’s biggest riser on the FTSE 100 with shares up by more than 5.5%.

It was also a positive session for other top European stock indices, with Germany’s Dax up 0.48% and France’s Cac 40 up 0.52% at close.

In the US, the S&P 500 was 0.15% higher and Dow Jones was up about 0.5% by the time European markets closed.

The pound was up by 0.25% against the US dollar to 1.2693, and down by 0.1% against the euro to 1.1583.

The price of Brent crude oil was down by about 1.75% to 76.9 US dollars per barrel.

In company news, shares in JD Sports plummeted by about a quarter after the sportswear retailer downgraded its yearly profit expectations.

The business said its pre-tax profit is likely to be more than £100 million less than previous guidance in the year to early February.

Shares in JD Sports tumbled by 23% after the update which flagged a “more cautious consumer”.

It was also a tougher day for Topps Tiles which saw its share price fall by as much as 9% in early trading, after revealing a dip in revenues.

The firm said it had seen customers tightening their belts, leading like-for-like sales to decline by about 7% between October and December.

Its share price was down 5.4% by the end of the day.

The biggest risers on the FTSE 100 were Next, up 468p to 8,550p, Beazley, up 22.5p to 549p, Schroders, up 9.5p to 431.7p, Hikma Pharmaceuticals, up 36.5p to 1,850.5p, and BAE Systems, up 21.5p to 1,155.5p.

The biggest fallers on the FTSE 100 were JD Sports Fashion, down 35.75p to 119.7p, Croda International, down 215p to 4,667p, Frasers Group, down 31p to 840p, Flutter Entertainment, down 345p to 13,365p, and Fresnillo, down 10.2p to 543p.

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