By continuing to use this site, you agree to use of cookies. You can change this and find out more by following this link Accept cookies

Burberry Boosts FTSE 100

TUESDAY MARKET UPDATE: Shares in the luxury retailer Burberry rallied by nearly 5% and led the markets higher

Alanna Petroff 15 January, 2013 | 6:00PM

UK markets endured a rather bumpy ride on Tuesday, but ended the day marginally higher. The FTSE 100 index edged up by 9 points, or 0.2%, to close at 6,117. The FTSE 250 index pushed up by 16 points, or 0.1%, to close at 12,775. 

Shares in Burberry (BRBY) rallied ahead by nearly 5%, which helped lift the overall large-cap FTSE 100 index. Investors bid the shares higher after the luxury retailer reported strong sales in the final three months of 2012. The company reported a 13% surge in retail sales and also demonstrated that it was still making progress in its all-important Asian markets.

"By region, Asia Pacific (led by Hong Kong and China) and emerging markets saw double-digit comparable store sales growth," stated the company in its quarterly trading update.

"Only a few months ago [Burberry] had issued a profit warning [due to] slowing Chinese sales. The stock market adage is that profit warnings come in threes, but it would seem not for Burberry," said Angus Campbell, head of market analysis at Capital Spreads. "Despite slowing sales in Europe, its global footprint and presence in Asia is outweighing the recession on the continent and so the stock is making its march back towards the dizzy heights set in 2011 and 2012 of £16."

Shares in Pearson (PSON) also rallied ahead on Tuesday by just over 3%, making it the second best gainer on the FTSE 100, after Burberry.

Meanwhile, trading in HMV (HMV) shares were suspended and management announced that it is seeking insolvency protection. This comes just after the demise of the digital camera specialist Jessops.

"Unfortunately, HMV is a sad story that tells of a company unable to foresee the winds of change within its industry and before it reacted it was too late," said Campbell.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Burberry Group PLC1,411.00 GBX-0.21-
About Author Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.