Strength among retail stocks meant that London’s blue-chips continued to enjoy their new year rally and pushed the UK’s leading share index to its highest level since early June.
The FTSE 100 added a further 31.81 points, or 0.4 per cent, to 7,617.46 as investors toasted positive Christmas trading updates from Next, often considered a bellwether of the high street. The more UK-focused FTSE 250 rose 68.87 points, or 0.4 per cent, to 19,459.94.
Better-than-expected online and in-person shopping in the nine weeks to December 20 prompted Next to raise its pre-tax profit forecasts for the current year from £840 million to £860 million. The shares rallied 454p, or 7.5 per cent, to £65.52, their highest level in more than four months.
Others on the high street also enjoyed a day in the sun. Associated British Foods, owner of Primark, rose by 57½p, or 3.4 per cent, to £17.30; Marks and Spencer by 3¾p, or 2.8 per cent, to 135½p; JD Sports by 4½p, or 3.2 per cent, to 139½p; and Frasers Group by 17 p, or 2.4 per cent, to 753½p. Watches of Switzerland also gained 43½p, or 5 per cent, to 906p, and Asos added 13½p, or 2.4 per cent, to 583½p.
Airlines continued to fly high on the back of positive updates from Wizz Air and Ryanair. IAG extended its winning streak for a third session, rising 3¼p, or 2.4 per cent, to 138p, Wizz Air improved 136p, or 6.5 per cent, to £22.31 and easyJet advanced 17¼p, or 4.9 per cent, to 372p.
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A rebound in copper prices lifted shares in Anglo American and Antofagasta, up 119p, or 3.7 per cent, to £32.99 and 55½p, or 3.6 per cent, to £16.09½.
Pearson was the heaviest drag on the FTSE 100, falling 42p, or 4.4 per cent, to 912¾p after Bank of America downgraded the education publisher to an “underperform” rating. Prudential followed suit, down 29p, or 2.3 per cent, to £12.10½ on the back of a downgrade from Exane BNP Paribas.