Market Report: Stores lead Footsie to new peak
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Your support makes all the difference.STORES led the stock market to another new peak yesterday. Reports of a post-Christmas shopping spree had a predictable impact, with retail shares attracting much of what little investment activity occurred.
The FT-SE 100 share index jumped 20.3 points to 2,847.8, beating the last record, hit in Christmas week, by 5.8.
Another advance in the US consumer confidence index contributed to the progress.
Since the start of the three- week Christmas account, which ends tomorrow, the index has advanced more than 130 points, strengthening the holiday account's already considerable reputation for cheerful progress.
Recovery hopes, underlined by futures activity, have helped the advance, which has often reflected heavy trading.
The yearly share-tip ritual also played a part as the deluge of selections has, if only superfically, attracted attention.
But yesterday's trading was exceedingly thin, with Seaq putting turnover at 287 million shares. Many investment houses operated with reduced staffing levels as the holiday continued for many investment decision-makers.
In such conditions institutions were content to stay on the sidelines, although a little year-end window dressing and titillation occurred.
Among the store shares higher were Burton Group, Kingfisher and Storehouse.
Dixons, demonstrating the computer games boom, gained 9p to 268p. MFI Furniture, helped by a push from James Capel, progressed 8p to 145p.
The shares were floated at 115p in July after attempts to obtain a price above 140p were abandoned in the depressed conditions then prevailing.
Marks & Spencer put on 6p to 332p. Commenting on Christmas trading, a spokesman said: 'We're on estimate; we're reasonably satisfied; reasonably pleased.'
Glaxo Holdings also gave the market a shot in the arm. At one time down 12p, the shares jumped to 774p (after 778p) as its important anti-migraine treatment was cleared by the US Food and Drug Administration.
The group's shares have been under pressure during the record- breaking account.
They started at 812p. Stockbroker caution, largely based on unease about the growth of some of the newer drugs, took its toll. And when New York started to display disenchantment with leading drug shares, the pressure on Glaxo deepened. So, although the FDA approval decision had already been signalled, a positive development had an unexpected powerful impact.
Most other health shares remained in a Christmas stupor. But Huntingdon International, which has attracted keen US interest in the past, jumped 25p to 248p, reflecting a growing US fascination with second-line drug stocks. The shares started the account at 183p.
Imperial Chemical Industries, on recovery hopes, advanced 29p to 1,051p.
Hard-pressed hotel shares also attracted recovery buying. Forte rose 3p to 184p and Queens Moat Houses improved 1.5p to 47p. Builders also notched gains.
BT, the telecommunications giant, jumped on an expected rush of buy recommendations. The Government is due to sell its remaining shareholding next year.
Kwik-Fit, the tyres and exhausts group, came in for another takeover run. The shares jumped 9p to 126p on rumours that Inchcape, the international trading group thought to be on the verge of a significant takeover bid, had built a 5 per cent shareholding.
Earlier bid stories had linked Kwik-Fit with Kingfisher and Boots.
Inchcape, also suggested as a bidder for Gestetner, the office equipment group, rose 9p to 565p.
Brake Brothers, the frozen food group that was Christmas Eve's surprise hot takeover tip, held at 440p.
Pittard Garner, the leather group, enjoyed a boost from Rowan Dartington, the West Country stockbroker.
The shares jumped 17p to 85p as the broker forecast profits of pounds 3.5m, up from pounds 2.1m.
In thin trading the FT-SE 100 index of leading shares climbed to a 2,847.8 points peak, up 20.3. The FT-SE 250, covering the next 250 shares, and FT-SE 350, combining the two, also closed at new highs. Turnover reached 287 million shares with 17,406 bargains lodged. Government stocks were firm, with gains of up to pounds 1/2 , after a successful tap stock auction
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