FTSE down as festive reports mixed

Game Group and Argos owner Home Retail Group were the major share price winners in a busy session for Christmas trading updates.

In contrast, supermarket Tesco and Dixons Retail Group fell heavily after their festive performances disappointed City analysts.

With the updates confirming the view that the snow-hit trading period had been a mixed one for the sector, there was little to drive the wider London market as the FTSE 100 index slipped 22.4 points to 6028.4.

Tesco was the biggest faller in the top flight after it posted modest 0.6% like-for-like sales growth in the six weeks to January 8. Shares fell 9.5p to 414.2p as the update appeared to confirm recent signs that rival Sainsbury’s had gained ground on the industry market leader.

In the FTSE 250 Index, Argos owner Home Retail Group jumped 13.4p to 219.4p after it said its profit forecasts remained intact after the festive period.

Dixons Retail Group moved in the opposite direction, down 1.5p to 22.2p after it said like-for-like sales were down 2% but that UK operations performed well.

Halfords fell 5.8p to 414.2p as it said poor sales of children’s bicycles would keep profits at the bottom end of market expectations, but Game Group jumped 13% or 8.25p to 70.5p after its recent rate of sales decline narrowed due to a strong Christmas season for games releases.