Markets: Further broker praise drives Weir up

WEIR Group finished at the top of the Footsie leader board yesterday after RBC Capital Markets became the latest broker to sing the Glasgow-based engineering giant's praises.

Valve-maker Weir closed up 4.8 per cent or 94p at 2,050p after RBC raised its target price from 2,250p to 2,500p but said the shares could go as high as 3,000p over the next two years.

Aberdeen-based oil and gas services outfit Wood Group also managed a top-five finish, up 18p or 2.9 per cent at 647p after winning a major pipeline contract in Australia.

The FTSE 100 index shrugged off a slow start to the day to close up 47.45 points or 0.8 per cent at 5,856.34, boosted by a strong opening on Wall Street.

Yusuf Heusen, senior sales trader at IG Index, said: "The release of US trade deficit data gave investors the excuse to dip their toes back in the water.

"The near-triple-digit gains posted by the Dow Jones in early trading very clearly set the pace, guiding the likes of London and Frankfurt to a positive close."

Worries about the UK economy resurfaced after Home Retail Group, which owns Argos and Homebase, revealed a 9.6 per cent decline in like-for-like sales at its chain of catalogue shops over the 13 weeks to 28 May, sending its shares sliding by 13 per cent or 25.8p to 176.5p.

Elsewhere in the retail sector, Marks & Spencer dropped 3.4p to 366.7p and B&Q-parent Kingfisher fell 0.1p to 274p.

Home Retail is the latest group to issue a gloomy update after HMV, Mothercare and Dixons Retail all reported tough trade on the high street. Dixons plunged 9 per cent in the FTSE 250, or 1.8p to 17.5p, after Argos said sales of consumer electricals were weak.

JD Sports Fashion added to the uncertainty by reporting a deterioration in like-for-like sales, but said this was partly down to tough comparisons with the lead-up to the World Cup last year. Shares, which have enjoyed a strong run in recent months, were 51.5p lower at 932p, a fall of 5 per cent.

But Halfords bucked the trend by reporting a strong start to its new financial year, with like-for-like sales up 0.8 per cent after the weather boosted demand for bicycles and camping gear. Shares jumped 3 per cent, or 11p to 408.5p.

Lloyds Banking Group hit the top of the fallers' board with a drop of almost 2 per cent after reports claimed the lender was considering setting up a separate bank and floating it on the stock market if an auction of 600 branches fails. Shares were down 0.9p at 47.8p. Royal Bank of Scotland was down 0.3p at 41p after analysts at Canaccord Adams trimmed their target price from 47p to 44p, while Barclays fell 3.2p to 260p.

Miners offered some support after a turbulent week as Antofagasta recovered from Wednesday's share price losses to stand 30p higher at 1,256p.

Rising oil prices - Brent crude stood higher at $119.20 a barrel - lifted the oil and gas sector.BP was up 5.9p at 450p, Edinburgh-based Cairn Energy was 2.9p ahead at 424p and Petrofac rose 17p to 1,544p.

Aim-quoted Bowleven jumped 11.5 per cent or 33.5p to close at 325.25p after positive news on the Edinburgh-based explorer's latest well off the coast of Cameroon.