Burberry and Cadbury Lead FTSE Revival

London equities recovered from a disappointing morning in afternoon trading on Tuesday with confectioner Cadbury and luxury fashion label Burberry leading the charge. The FTSE 100 index closed up 18.75 points or 0.3% at 5,513.14, eventually supplementing Monday's gains, when the index closed up 0.7%.

Dominic Turner
shareprices.com - Tuesday, January 19, 2010

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Cadbury's acceptance of a revised bid from Kraft, worth 850p a share or £11.9 billion, may have been the headline company news of the day – indeed Cadbury's share price closed up 29p or 3.59% at 836.50p, making it one of the best performers in the FTSE 100 – but Burberry stole its thunder closing up 49.50p or 8.26% at 649p. Burberry reported a 10% rise in like-for-like sales in the three months to the end of December and said that it expected full-year profits at the top end of market expectations, currently between £175 million and £200 million.

The third largest bank in the U.S., Citigroup, posted a quarterly loss of $7.6 billion due largely to repayments to the so-called Troubled Asset Relief Programme (TARP), worth $20 billion and a provision for bad loans worth $8.2 billion. Banking stocks reflected the disappointing results with Barclays, HSBC, Lloyds Banking Group and Standard Chartered all closing in the red by between 0.1% and 2.6%. Barclays was hindered by a cut in its target price from 400p to 350p by Credit Suisse. Royal Bank of Scotland (RBS) remained resilient, despite the announcement of over 200 job losses in Dublin and Belfast and an online protest led by singer and activist Billy Bragg over its bonus culture, ending the day up 1.10p or 2.95% at 38.34p.

 

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