London open: Stocks post slim gains

4th Jun 2009 08:22

London's top stocks are posting slight gains in early deals ahead of the Bank of England's interest rate decision later today with supermarkets doing well.Wm Morrison made a good start to the new trading year, with sales growth well ahead of the sector norm. Like for like sales improved by 8.2%, or by 5.0% including fuel, maintaining the rate of LFL growth seen in the year to 1 February 2009. Sainsbury's also moved ahead. Department store Debenhams is to raise £323m through a placing and open offer to reduce its debt burden and improve its ability to acquire retail assets that may arise if the economic downturn persists. It said its high debt levels had damaged investor sentiment towards the company, which has impacted its share price. Newsagent WH Smith said like-for-like sales in the first 13 weeks of the second half are down 4% on the same period last year, with total sales up 1%. The group said its financial position is in line with market expectations and its balance sheet remains strong as it continues to generate high levels of cash from its operations. Car catalyst provider Johnson Matthey saw profits for the year fall 5% and warned interim operating profit in the new year will be lower as the downturn in the car industry hits demand for autocatalysts. Miner Lonmin said it has received approximately 96.38% take up from its rights issue to raise $457m, while consumer electronics retailer DSG International received 97.1% acceptances for its rights issue. Outsource giant Capita said it is in early discussions to the partial disposal of IBS OPENSystems after the Competition Commission deemed part of the business will lessen competition. The Competition Commission confirmed the acquisition by Capita of IBS last June is expected to lessen competition in the market for revenues and benefits software systems.Healthcare support services provider Synergy Health said it is on track to fully restore margins during autumn of this year. The company saw a 1.6% decline in operating margins in the year to 29 March 2009, caused mainly by rapid escalation of energy and commodity costs together with one off start-up costs incurred on new contracts in the Decontamination Services business. Budget airline easyJet posted a 1.8% rise in passengers in May as travellers continued taking advantage of low cost fares amid difficult economic conditions.IT services business FDM Group said it is currently in discussions with its management team, which may lead to an offer at 120p per share in cash.