London open: Gains continue for Footsie

21st Jul 2009 08:42

London's blue chips have started another day in positive territory with Footsie more than 15 points higher. The blue chip index has now risen by about 7% in the past few days.Supermarket chain Wm Morrison is confident full year results will be ahead of its earlier expectations due to continuing customer growth and the successful implementation of its cost cutting plans. The group said the strong start to the year has been maintained through the second quarter. Tesco and J Sainsbury are up in sympathy.Car catalyst provider Johnson Matthey expects second quarter results to be similar to those in the first quarter as the downturn in the car industry continues to hits demand for autocatalysts. Water firm Severn Trent said trading has been in line with its expectations and prior guidance, though decline in consumption will hit revenues slightly. The group said the decline in consumption across its measured income base has continued at similar levels to 2008/09 and it estimates this will impact revenues by around £15-£20m the current financial year. Hot weather in June prompted Next to bring forward its latest trading update by a week and to increase its profit estimate for this year by £30m. The high street giant reported total Next Retail sales in the 25 weeks to 18 July were up 1.4% excluding VAT, with like-for-like sales down by 1.9%. London-based pub company Fuller's is another hot weather beneficiary with sales boosted by the sun in the 16 weeks to 18 July 2009. Like-for-like sales in its managed pubs and hotels increased by 2.9% in the period, though tenanted like for like profits were down 1%. The Fuller's Beer Company's own brewed beer volumes grew by 2%. Spread betting firm IG Index saw profits surge 15% in the year, helped by organic growth and the acquisition of FXOnline Japan.