Business

Supermarkets power FTSE 100 higher

  • 12 January 2016
  • From the section Business
Market trader (file picture) Image copyright Getty Images

(Close): The FTSE 100 ended higher - driven by a surge in supermarket shares.

Tesco jumped 7% and Sainsbury's added 3.25% after Morrisons reported much better than expected results.

Shares in Morrisons, which is a FTSE 250 stock, soared more than 8%. Debenhams led the FTSE 250 higher with a 16% surge, after it also reported better than expected results.

Overall, the FTSE 100 was 57.41 higher - 0.57% - at 5929.24 points.

Building firms were also among the leading shares, with Berkeley Group up 4% and Barratt Developments up 2.5%.

Analysts at Jefferies upgraded their rating of those shares to buy from hold.

Barratt is due to issue a trading update on Wednesday.

Shares in BP rose 0.9%, helped by a rebound in oil prices during the session before losing 1.5% by the close. The company also announced plans to shed 600 jobs from its North Sea operations over the next two years.

Miners lead the closing fallers' list, with Rangold Resources faring worst with a loss of almost 4%.

Meanwhile, on the currency markets, the pound fell 0.85% against the dollar to $1.4419 and fell by 0.6% against the euro to €1.3309.