London pre-open: Slight gains expected

1st Apr 2010 07:33

Footsie is expected to edge higher in early dealings as investors ponder retail-related updates.The cold snap in the early part of the year and tougher comparatives contributed to a drop in fourth quarter like for like (LFL) sales at baby products retailer Mothercare. On the positive side, the international division pepped up the group's trading performance in the 11 weeks ended 27 March with a 19.3% jump in overseas retail sales. UK LFL sales were down 1.6% in the period, while total UK sales dropped by 0.9%. Total group sales were up 3.3% and direct in home sales jumped 15.3%.The snow failed to dent growth at cash and carry group Booker, which saw sales rise in the quarter to March 26 as its customers braved the wintery weather of much of the period to stock up on supplies. Sales rose by 3.8% from the same period the previous year or by 3.6% on a like-for-like basis (excluding the impact of new openings). Non-tobacco like-for-likes rose by 3.0%, while like-for-like tobacco sales increased by 4.6%.Britain's four mobile phone groups have been told to cut their mobile call termination charges by up to 90% over the next four years by telecoms regulator Ofcom. Vodafone, Orange, O2 and 3UK currently charge either 4.6p or 4.3p for ending a call to another network. This will fall to 0.5p by 2015 under today's proposals.Tullow Oil announced that the Likonde-1 well, onshore Tanzania, has encountered thick sands with hydrocarbon shows. The well, which is now being plugged and abandoned, is the first of a two-well programme within the prospective Ruvuma delta region. The group said the 'encouraging results' will be followed up with detailed technical work prior to selecting the next drilling location.