Upbeat reports lift shares yet again

BRITAIN'S top shares hit a 21-month closing high for the third day in a row last night, ending the day above the 5,700-mark for the first time since 19 June, 2008.

The FTSE 100 closed 49.77 points higher at 5,727.65, helped by a rally in bank stocks as sovereign debt concerns faded, while retailers were boosted by upbeat results from Next and official retail sales figures.

Jimmy Yates, head of UK equities at CMC Markets, said: "UK budget and sovereign debt head-winds have eased, helping the FTSE break through the 5,700 barrier. Staying above that level buoyed investor confidence."

According to Stephen Pope, chief global equity strategist at Cantor Fitzgerald, the next resistance level for the index is 5,973. The FTSE has risen nearly 7 per cent in March and is heading for its best month since August.

But the pound was under more pressure, down at $1.48 against the dollar as analysts worried that Wednesday's Budget offered nothing new on deficit reduction plans. Sterling was flat against the euro at 1.11.

Royal Bank of Scotland climbed 2.5 per cent, or 1.11p, to 45.6p as the bank unveiled a complex plan to restructure 15.8 billion of debt as part of a balance sheet overhaul.

Lloyds Banking Group added 0.71p to end the day at 64.9p. Analysts said that the bank is trading above the UK government's average investment per share on at least one measure.

Thomas Cook led the London market higher with a 6 per cent or 15.9p gain, to 272p, after the tour operator's trading update boasted of strong summer holiday sales across its markets.

TUI Travel – which owns Thomson and posted its own healthy update on Wednesday – followed Thomas Cook higher, with a 7.2p rise to 308.4p.

Retailers were also in focus.

Fashion chain Next added 104p to close at 2,174p after lifting profits 18 per cent to 505 million in the 12 months to January – as well as growing like-for-like sales after four years of declines.

But Kingfisher was a casualty, losing 2.7p to 225.8p as the full-year results from the owner of B&Q were in line with analysts' expectations.

Among the smaller-cap stocks, Clinton Cards cheered 3.75p, or 8 per cent, to close at 49p after the company flagged up better than expected annual results thanks to a tight rein on costs.

Pubs group Mitchells & Butlers – which owns All Bar One – was a prominent riser in the FTSE 250 as Citigroup upped its price target following a strategic review on Wednesday, which will see a bigger emphasis on food. Shares rose 20.8p or 7 per cent to 322.8p.

Back in the top flight, Vodafone was on the back foot after brokers at Morgan Stanley cut their rating amid worries over its exposure to European markets. Shares fell 1.7p to 147.2p.

Eurasian Natural Resources, lost 15p to 1,186p after downbeat comments from Credit Suisse.

Among the Scottish stocks, Cumbernauld-based AG Barr continued to climb following Monday's full-year results, with the maker of Irn-Bru closing up 38.5p at 960p.

Forth Ports remained on an even keel as the Edinburgh-based ports operator hoisted up a penny to close at 1,392p.

The group remains a takeover target for a consortium led by Peel Group, one of Forth Ports' major shareholders.