London open: Stocks gain after retail sales data; miners rally

London stocks rose in early trade on Friday, helped along by a strong showing in the mining sector and better-than-expected retail sales data.

At 0900 GMT, the FTSE 100 was up 0.4% at 7,285.23.

Figures out earlier from the Office for National Statistics showed retail sales rose more than expected in October, underpinned by spending on toys and clothes in the run-up to Christmas.

Retail sales were up 0.8% on the month, coming in ahead of expectations for a 0.5% increase and leaving sales 5.8% above pre-pandemic February 2020 levels. September’s sales figures was revised up from a 0.2% fall to flat.

Non-food store sales were the only major component to see month-on-month growth, of 4.2%, with second-hand sales making the biggest contribution. Within non-food, clothing sales jumped by 6.2%, with some retailers suggesting that early Christmas trading had boosted sales. Clothing stores sales are now just 0.5% below their pre-pandemic levels.

Meanwhile, "other" store sales, which include toy retailers, jumped 7.2%. Food store sales fell 0.3%, while petrol sales declined 6.4% in the wake of September’s panic-buying.

The retail sales figures came as the latest survey from GfK showed consumer confidence edged up in November despite the rising cost of living, although households' view of their own finances remained weak.

The GfK consumer confidence index rose by three points to -14, reversing most of the four-point drop from the month before. Households were less gloomy about the general economic situation over the past 12 months and the coming year and were marginally more positive about their own finances for the coming year.

In equity markets, Ocado surged to the top of the FTSE 100 on the back of a Deutsche Bank research note on Marks & Spencer, which suggested it could buy out the online supermarket. The bank said: "Cash flow is no longer being squandered on an unsustainable dividend but saved to recover the investment grade credit rating that may be required to buy out Ocado."

Miners were among the top gainers as copper prices rose, with Anglo American, BHP, Antofagasta, Rio and Glencore all higher.

Commercial landlord Great Portland Estates was in the black after saying it swung to a half-year profit as Covid lockdowns were eased and shoppers cautiously returned to London’s West End retail precinct. It also upgraded its full-year rental value growth range to between 2% and 5%, predominantly driven by the positive performance of its office portfolio.

B&Q owner Kingfisher slumped as it reported a 2.4% drop in like-for-like sales for the third quarter but said annual results would be near the top of guidance.

Johnson Matthey was under the cosh after a downgrade to ‘neutral’ from outperform’ at Credit Suisse.

Market Movers

FTSE 100 (UKX) 7,285.23 0.40%
FTSE 250 (MCX) 23,596.98 0.09%
techMARK (TASX) 4,567.41 0.30%

FTSE 100 - Risers

Ocado Group (OCDO) 1,850.50p 4.19%
Anglo American (AAL) 2,877.00p 2.81%
BHP Group (BHP) 1,910.20p 2.24%
Royal Mail (RMG) 489.90p 1.91%
Land Securities Group (LAND) 759.80p 1.88%
Antofagasta (ANTO) 1,425.50p 1.79%
Rio Tinto (RIO) 4,446.50p 1.62%
Imperial Brands (IMB) 1,596.00p 1.30%
Glencore (GLEN) 373.45p 1.26%
Pershing Square Holdings Ltd NPV (PSH) 3,060.00p 1.16%

FTSE 100 - Fallers

Kingfisher (KGF) 323.70p -4.00%
Johnson Matthey (JMAT) 2,223.00p -1.46%
Darktrace (DARK) 517.00p -1.43%
M&G (MNG) 196.60p -1.16%
Rolls-Royce Holdings (RR.) 140.02p -1.03%
Persimmon (PSN) 2,790.00p -1.03%
Experian (EXPN) 3,414.00p -0.93%
Pearson (PSON) 624.80p -0.79%
Coca-Cola HBC AG (CDI) (CCH) 2,494.00p -0.76%
Intermediate Capital Group (ICP) 2,283.00p -0.74%

FTSE 250 - Risers

Investec (INVP) 378.70p 3.73%
Rotork (ROR) 354.00p 2.55%
Ferrexpo (FXPO) 292.20p 2.31%
Bridgepoint Group (Reg S) (BPT) 539.00p 1.70%
OSB Group (OSB) 516.50p 1.67%
Virgin Money UK (VMUK) 178.65p 1.62%
Watches of Switzerland Group (WOSG) 1,398.00p 1.60%
Petropavlovsk (POG) 22.50p 1.53%
Schroder Oriental Income Fund Ltd. (SOI) 267.00p 1.52%
Scottish American Inv Company (SAIN) 535.00p 1.52%

FTSE 250 - Fallers

Grainger (GRI) 310.00p -2.52%
Premier Foods (PFD) 103.80p -2.08%
Close Brothers Group (CBG) 1,394.00p -1.41%
Hammerson (HMSO) 32.59p -1.36%
SSP Group (SSPG) 259.50p -1.26%
Wood Group (John) (WG.) 204.00p -1.21%
Trainline (TRN) 291.40p -1.15%
easyJet (EZJ) 564.40p -1.09%
NCC Group (NCC) 238.00p -1.04%
Vietnam Enterprise Investments (DI) (VEIL) 765.00p -1.03%