London open: Retailers caned after Next disappoints

4th Jan 2012 08:38

Footsie has defied expectations of a soft start and has crept above the 5,700 barrier, helped by continuing demand for resource stocks.Fashion chain Next is a drag on the index, however, after a cautious trading statement. The company said"despite a good final week before Christmas, November and December sales were disappointing". The firm's Retail unit saw sales (excluding VAT) fall 2.7% in the period from August 1st to December 24th versus the corresponding period the year before, while Directory sales improved by 16.9%. Sales for the Next brand overall rose 3.1%, in line with - but in the bottom half of - the full year guidance range given in November of between 2.5% and 4.0%. Sector peer Marks & Spencer dips in sympathy with Next, while other retailers under the cosh in early trading including DIY specialists Kingfisher and Home Retail, plus newsagent WH Smith and car parts & bike seller Halfords.Smith and Nephew, the medical technology business, is wanted after it announced plans to transfer the bulk of its US biologics team and Clinical Therapies business to a newly formed joint venture (JV), called Bioventus. The deal will dilute earnings slightly, but the company will receive a 49% stake in the JV, as well as $98m in cash and will receive a $160m 5-year note from Bioventus. The majority owner of Bioventus is Essex Woodlands, a specialist healthcare growth equity and venture capital firm. Pizza delivery firm Domino's Pizza saw a slow-down in year-on-year like-for-like sales (LFL) growth in the final quarter of 2012, but this was expected, with the company facing tough comparatives, and the company's new Chief Executive Officer, Lance Batchelor, said the company will meet profit expectations for 2011. In the 13 weeks to December 25th, LFL sales rose by 3.6%, down from the preceding quarter's 3.9% growth. Panmure Gordon had predicted LFL sales growth of 3.3%. System sales for the period increased by 9.5% to £145.0m from £132.5m in the corresponding period of last year.Kefi Minerals, an AIM-listed gold and copper exploration company, has been awarded two mineral exploration licences in Saudi Arabia. The licences, which are for a period of five years, are located in the Central Arabian Gold Region, and have been awarded to a joint venture company in which Kefi Minerals has a 40% interest. Kefi is the operating partner in the joint venture.FTSE 100 - RisersRio Tinto (RIO) 3,363.50p +1.16%Smith & Nephew (SN.) 633.00p +1.12%Meggitt (MGGT) 361.60p +1.01%Antofagasta (ANTO) 1,317.00p +0.92%Experian (EXPN) 888.00p +0.91%Amec (AMEC) 941.50p +0.91%Evraz (EVR) 395.00p +0.89%Schroders (SDR) 1,366.00p +0.89%Xstrata (XTA) 1,041.00p +0.82%Petrofac Ltd. (PFC) 1,471.00p +0.82%FTSE 100 - FallersNext (NXT) 2,623.00p -4.30%Shire Plc (SHP) 2,183.00p -1.89%Marks & Spencer Group (MKS) 311.70p -1.67%British Sky Broadcasting Group (BSY) 730.00p -1.62%HSBC Holdings (HSBA) 499.90p -0.99%Standard Chartered (STAN) 1,440.50p -0.93%Kingfisher (KGF) 247.70p -0.92%ITV (ITV) 69.70p -0.92%Glencore International (GLEN) 414.85p -0.79%Unilever (ULVR) 2,174.00p -0.69%FTSE 250 - RisersBwin.party Digital Entertainment (BPTY) 172.40p +3.11%Talvivaara Mining Company (TALV) 263.10p +3.06%BH Global Ltd. USD Shares (BHGU) 11.8 +2.25%Phoenix Group Holdings (DI) (PHNX) 536.00p +2.10%Domino's Pizza UK & IRL (DOM) 422.00p +1.98%Allied Gold Mining (ALD) 151.90p +1.95%Salamander Energy (SMDR) 215.80p +1.79%Bellway (BWY) 717.50p +1.77%Senior (SNR) 175.10p +1.57%Aquarius Platinum Ltd. (AQP) 166.50p +1.52%FTSE 250 - FallersHome Retail Group (HOME) 90.55p -3.87%New World Resources A Shares (NWR) 470.10p -3.61%Jupiter Fund Management (JUP) 213.50p -2.95%WH Smith (SMWH) 523.00p -2.79%Halfords Group (HFD) 303.30p -2.00%Dairy Crest Group (DCG) 333.60p -1.88%Ferrexpo (FXPO) 287.10p -1.85%Scottish Inv Trust (SCIN) 450.00p -1.75%Afren (AFR) 101.40p -1.74%F&C Commercial Property Trust Ltd. (FCPT) 102.10p -1.54%--jh