Next and Thomas Cook Drive FTSE Higher

Dominic Turner
shareprices.com - Thursday, March 25, 2010

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The FTSE 100 index rose above the 5,700 point mark for the first time since June 2008 on Thursday morning with travel agent Thomas Cook and fashion retailer Next leading the way. Shortly after midday, the leading share index was up 31.65 points or 0.56% to 5,709.53.

Thomas Cook was the best performer of all amongst FTSE 100 constituent companies, gaining 16.9p or 9.6% to 273p after HSBC maintained the stock at "overweight", but raised its target price from 280p to 315p. Thomas Cook echoed the comments of rival Tui Travel, which said that it had seen a significant increase in demand for summer and winter holidays; Tui's own share price rose 7.5p or 2.49% to 308.7p.

Next reported soaring pre-tax profits, up 18% to £505 million in the 12 months to January and its share price rose 125p or 6.04% to 2,195p. Fellow retailer Kingfisher, which owns the B&Q and Screwfix brands and is, in fact, the third largest home improvement retailer in the world, fared less well. The firm reported pre-tax profits of £547 million, an increase of almost 50% and raised its dividend for the first time in five years, but investors were unimpressed and its share price fell 5.5p or 2.41% to 223p.

There was much worse news for railway maintenance contractor Jarvis, whose shares were suspended after it called in administrators. The former FTSE Fledgling company recently won a contract worth £55 million from Chiltern Railways, but failed to secure additional backing from its lenders in the face of plunging work volumes.

 

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