Retailer Next shines on FTSE as index hits 5-month high
* FTSE 100 gains 0.1 pct, up for fifth straight session
* Next is top gainer after raises 2013 profit forecast
* Barclays (LSE: BARC.L - news) report helps banks rebound
(Adds quote, detail, updates prices)
By Alistair Smout
LONDON, Oct (KOSDAQ: 039200.KQ - news) 30 (Reuters) - Britain's top shares rose to
five-month highs on Wednesday, boosted by the retail sector as
Next highlighted a good day for earnings with a strong
quarterly report.
Britain's second-biggest clothing retailer rose 4.7 percent
after it raised its 2013 profit guidance and third-quarter sales
came in a touch above expectations. The sector
outpaced all others on the FTSE 100 index, rising 1.6 percent.
"Earnings thus far we are pleased with as forward-looking
estimates edge up," Atif Latif, director of trading at Guardian
Stockbrokers, said.
"Into the year-end we remain confident that higher equity
markets will continue. Given the lack of available yield from
fixed income, equities remain the best asset class for
investors."
The FTSE 100 was up 0.1 percent, at 6,780.92 points
by 1518 GMT, set for its fifth successive day of gains and
hitting its highest levels since May.
However, the market pared earlier strong gains after the
opening of U.S. markets, which were flat ahead of the outcome of
a two-day U.S. Federal Reserve policy meeting.
The expectation that the Fed will maintain current levels of
asset purchases in its announcement after Wednesday's close
helped support the FTSE near its May high, which itself was the
highest level for the index in 13 years.
Barclays also benefited from better earnings,
advancing 1.2 percent after underlying pretax profits beat
forecasts.
"Generally speaking our clients are favouring the banks, as
they like the cyclical story," Matt Basi, head of sales trading
at CMC Markets, said, although he was cautious over risks that
remain in the sector. Among those, he cited an investigation,
which Barclays said it was co-operating with, into possible
manipulation of currency trading
"Barclays have written down a smaller amount than some were
expecting ... but I'm not quite sure what to make of potential
bad news to come."
Overall, financials were mixed, and insurer Standard Life (LSE: SL.L - news)
was the top FTSE faller, down 3.6 percent after new
business and asset growth for the third quarter fell short of
forecasts
Around 53 percent of companies on the pan-European STOXX 600
index that have reported results so far have beaten or
met market expectations, Thomson Reuters Starmine data showed.
(Editing by Stephen Nisbet)