Burberry results lead Footsie rally

Burberry results lead Footsie rally


The FTSE 100 Index opened up 56.1 points at 6041.9

Burberry led a rally for the FTSE 100 Index on Tuesday after the fashion chain delivered another forecast-beating trading update.

The group topped the risers board with a gain of 4%, up 40p to 1099p, after underlying revenues rose 27% in the third quarter. It guided the market towards full-year profits at the top end of City expectations.

The FTSE 100 Index also made headway, rising 56.1 points to 6041.9 despite the lack of impetus from Wall Street due to a public holiday in the US.

Other stocks on the front foot included SABMiller after the brewing giant’s third quarter beer volumes beat expectations, causing shares to rise by 3%, or 64.5p, to 2236.5p.

On a shortened fallers board, GlaxoSmithKline fell after Monday’s announcement that the cost of settling legal disputes over controversial diabetes drug Avandia will hit a record £2.2 billion and wipe out profits for the fourth quarter. Shares fell 21p to 1184p, a drop of 2%.

Among other trading updates, FTSE 250 Index stock Taylor Wimpey rose 4% after it confirmed takeover approaches for its US division and said it continued to trade in line with expectations in the UK during the second half of 2010. Shares rose 1.5p to 36.6p.

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