Sector movers: Food and drug retailers boost markets

Supermarkets helped boost the London markets as they closed for the week following low Eurozone inflation fuelled stimulus hopes.

The FTSE 100 closed up 39.37 points (0.62%) at 6,378.04, while the FTSE 250 ended lower at 16,892.70, down 56.80 points (0.34%).

At 1540 BST West Texas Immediate crude rose 0.08% to $46.42 per barrel while Brent crude was down slightly by 0.42% to $49.52 per barrel after rising above the $50 level earlier in the session. The sector remained under pressure after a prediction from the International Energy Agency that the market would remain oversupplied through next year. Over the weekend Russia and OPEC will meet to discuss oil price bands and a possible production cut to address the slump in the market.

Base metals were mostly lower with the LME three-month futures contract on copper (-1.3%), nikel (-0.8%), tin (-1.0%) and zinc (-1.2%) in the red but lead rose (+0.5%).

Food and drug retailing was the biggest sector riser, led by investor confidence in Tesco, Greggs, Sainsbury’s and a number of other supermarkets.

Oil and gas producers including BP and Royal Dutch Shell were also big risers as Brent crude and West Texas Intermediate crude futures recovered.

Pharmaceuticals on the whole also gained, led by Shire. It was on the back of news from AstraZeneca that the US Food and Drug Administration is looking for more information about its new drug application for the investigational fixed-dose combination of saxagliptin and dapagliflozin.