Business

FTSE 100 rises but Sainsbury's hit as sales slide

Market trader (file picture) Image copyright Getty Images

(Close): The London market rose, helped by a rally in commodity-related stocks, but shares in Sainsbury's dropped as it reported a fall in sales.

The benchmark FTSE 100 index ended the day 41.71 points higher at 6,849.38.

Sainsbury's shares fell 3.9% to 241p after it reported a second quarter of falling sales.

Like-for-like sales excluding fuel fell 1,1% in the 16 weeks to 24 September as the price war between the supermarkets continued to take its toll.

However, the wider market was higher as a recovery in the price of metals and oil lifted mining and energy-related shares.

The biggest riser in the FTSE 100 was satellite broadcaster Sky, which rose more than 4% following a broker upgrade.

Shares in travel firm Tui - whose UK brands include Thomson and First Choice - rose 1.3% after it raised its forecast for earnings growth.

The company said the UK market had performed well over summer, with revenues up 5%.

It also said bookings for the winter were up 5% across the group, driven by a 22% rise in UK bookings after the company expanded its long-haul routes to destinations such as Mexico and the Dominican Republic.

Tui now expects full-year earnings to be 12-13% higher, compared with a previous forecast of at least 10% growth.

Shares in Phoenix Group rose 3.5% after the firm bought UK insurance business Abbey Life from Deutsche Bank for £935m. Abbey Life has 735,000 policyholder and manages £10bn worth of assets.

UK Mail's shares jumped 43% to 440.75p after it agreed to be bought by Deutsche Post for £242m.

On the currency markets, the pound dipped 0.25% against the dollar to $1.2990 and was flat against the euro at €1.1606.