London open: Stocks rise despite disappointing retail sales

London stocks gained in early trade on Friday as investors shrugged off disappointing UK retail sales figures.

At 0830 GMT, the FTSE 100 was up 0.5% at 7,448.57.

Data released earlier by the Office for National Statistics showed that retail sales unexpectedly fell in October as wet weather and the cost-of-living squeeze took their toll.

Retail sales declined by 0.3% on the month following a revised 1.1% drop in September, missing expectations for a 0.3% increase.

The fall was due mainly to a 2% decline in automotive fuel sales volumes but also from both food and non-food stores. Non-store retailing was the only main sector to report growth in sales volumes over the month.

Heather Bovill, deputy director for surveys and economic indicators at the ONS, said: "Retail sales fell again in October to their lowest level since February 2021 when widespread lockdown restrictions were in place.

"After rebounding in September, fuel sales dipped with increasing prices discouraging customers, while food sales also dropped as consumers prioritised essential goods.

"It was another poor month for household goods and clothes stores with these retailers reporting that cost-of-living pressures, reduced footfall and poor weather hit them hard.

"However, it was a better month for online retailers, the only main sector to report growth in October."

Gabriella Dickinson, senior UK economist at Pantheon Macroeconomics, said: "The further fall in retail sales in October, which left sales 3.9% below their 2022 average level, likely will be reversed in the coming months, due to robust growth in households’ real disposable incomes."

In equity markets, transport company FirstGroup rallied after it signed a deal with Hitachi that will see it buy up to 1,000 electric bus batteries as it works towards is decarbonisation targets.

AstraZeneca was also higher after it received US FDA approval for a new breast cancer treatment.

On the downside, London Stock Exchange Group was in the red, having announced after the market close on Thursday that it was lifting its growth guidance and planning a new share buyback.

Market Movers

FTSE 100 (UKX) 7,448.57 0.51%
FTSE 250 (MCX) 18,465.03 0.62%
techMARK (TASX) 4,071.60 0.39%

FTSE 100 - Risers

Flutter Entertainment (CDI) (FLTR) 12,655.00p 2.47%
NATWEST GROUP (NWG) 204.60p 1.84%
International Consolidated Airlines Group SA (CDI) (IAG) 162.20p 1.69%
Anglo American (AAL) 2,211.50p 1.63%
DCC (CDI) (DCC) 5,250.00p 1.59%
Barratt Developments (BDEV) 476.50p 1.56%
F&C Investment Trust (FCIT) 916.00p 1.55%
Land Securities Group (LAND) 649.80p 1.50%
Unite Group (UTG) 985.50p 1.39%
Glencore (GLEN) 463.65p 1.31%

FTSE 100 - Fallers

London Stock Exchange Group (LSEG) 8,358.00p -0.69%
Centrica (CNA) 148.45p -0.57%
BAE Systems (BA.) 1,057.50p -0.42%
Auto Trader Group (AUTO) 699.40p -0.29%
Shell (SHEL) 2,551.00p -0.18%
B&M European Value Retail S.A. (DI) (BME) 532.00p -0.15%
Burberry Group (BRBY) 1,548.50p -0.10%
Unilever (ULVR) 3,833.50p -0.05%
National Grid (NG.) 1,009.50p -0.05%
Rolls-Royce Holdings (RR.) 244.50p 0.00%

FTSE 250 - Risers

Kainos Group (KNOS) 1,048.00p 4.85%
Babcock International Group (BAB) 412.40p 4.35%
Aston Martin Lagonda Global Holdings (AML) 220.80p 3.95%
FirstGroup (FGP) 183.10p 3.92%
Helios Towers (HTWS) 78.25p 3.71%
Moneysupermarket.com Group (MONY) 286.00p 3.10%
Jupiter Fund Management (JUP) 86.30p 2.98%
Diversified Energy Company (DEC) 73.95p 2.57%
Grafton Group Ut (CDI) (GFTU) 818.60p 2.50%
Dr. Martens (DOCS) 115.20p 2.49%

FTSE 250 - Fallers

RHI Magnesita N.V. (DI) (RHIM) 2,698.00p -2.46%
Pets at Home Group (PETS) 299.40p -2.41%
C&C Group (CDI) (CCR) 137.60p -2.41%
Baltic Classifieds Group (BCG) 206.00p -2.37%
Morgan Advanced Materials (MGAM) 240.00p -2.24%
JTC (JTC) 713.00p -2.06%
Wood Group (John) (WG.) 141.70p -2.01%
Elementis (ELM) 123.80p -1.90%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 605.30p -1.26%
Great Portland Estates (GPE) 416.40p -1.19%