Burberry tops FTSE 100

The leading share index was modestly higher in early deals, as Burberry was the star performer following an upbeat trading statement.

The British luxury brand soared 5.2 per cent on the FTSE 100 this morning, as investors were cheered by its latest trading statement. Revenue over the third quarter jumped nine per cent, thanks to strong trading in the run-up to Christmas.

Richard Hunter at Hargreaves Lansdown Stockbrokers said this morning: “The update has comfortably beaten estimates, and various updates from the company since September’s shock have done much to reassure investors.

“In particular, strong retail growth was achieved through lines such as men’s tailoring and accessories, with the approach to Christmas being very successful.”

Elsewhere on the blue chip index, Eurasian Natural Resources added 3.44 per cent, following a broker upgrade yesterday. Broadcaster ITV also jumped almost 2.9 per cent.

Chip designer ARM Holdings was the biggest blue chip loser this morning, shedding 4.35 per cent on the back of broker downgrades.

Communications group BT and International Airlines Group were also down 1.64 per cent and 1.43 per cent respectively.

On the FTSE All-Share, retailers also had a poor showing, dropping on a string of bad news for the high street, most recently that HMV had collapsed into administration. JD Sports sank 4.72 per cent, while Laura Ashley was down 1.72 per cent.

Exillon Energy, which is under pressure from a shareholder to turn around its share price, slid 3.79 per cent this morning.

UK banking shares had a mixed morning. HSBC was flat in early deals, RBS was down 1.21 per cent, Barclays was down 0.69 per cent, although Lloyds Banking Group was up 2.29 per cent.