London open: Footsie falls as retailers suffer

9th Sep 2010 08:27

Shares are slightly lower in early dealings after updates from the retail sector were given a frosty reception.Supermarket Morrisons falls back even though it posted profits broadly in line with expectations for the six months to August 1. It also unveiled a move into the convenience store market as new chief executive Dalton Philips makes his mark on the company. Retailer Home Retail Group disappointed the market with its prediction that unless Christmas is a cracker this year profits are likely to be in the bottom half of the range of analysts' estimates. In a trading update the group said things are getting worse more slowly at Argos while Homebase beat expectations over the summer months.Music and DVD retailer HMV fell sharply, albeit after strong gains yesterday as it posted a 10.6% decline in first quarter sales as potential customers were distracted by the World Cup. The group, which is struggling to compete with internet rivals and supermarkets, said UK & Ireland like for like sales in the 19 weeks ended 4 September 2010 fell 14.9%. The spat between Kazakh mining giant Eurasian Natural Resources (ENRC) and Canadian miner First Quantum Minerals (FQM) over ENRC's acquisition of a majority interest in Camrose Resources is getting tetchier. ENRC has sent a letter to FQM complaining about recent statements made by the Canadian company which ENRC believes are an attempt to interfere with the Kazakh company's rights to develop the Camrose joint venture and the Kolwezi tailings project.Higher house prices helped home builder Redrow move back into profit in the year to June 30, but the outlook remains uncertain. The company posted a pre-tax profit of £0.7m against a loss of £44.2m the previous year, as revenues jumped to £396.9m from £301.8m.Electronic and industrial components supplier Premier Farnell said underlying pre-tax profit more than doubled after strong sales, particularly in the US, but remains cautious about the economic backdrop. Underlying pre-tax profit rose to £23.8m during the second quarter ended 1 August 2010 from £10.7m the same time a year earlier. Revenue during the period increased 30% to £252.1m.Spread-betting firm IG Group saw higher revenues in the three months to August 31, but said that volumes were subdued in the second half of that period and warned that future trends remain difficult to predict. Revenues were up to £79m from £68m in the same period the previous year.