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Global Newsbrokers Stockmarket Service
London stockmarket morning at 11:21:01

MODEST GAINS PERSIST TOWARDS MIDDAY

Thursday, January 13

The FTSE-100 index is up 7.7 at 4,791.3.

Modest gains remain in place in London towards midday, with the market underpinned by Wall Street's rebound last night and some positive domestic trading updates. However, a surprise 0.1 per cent fall in November manufacturing output is less welcome, pushing the sector to the brink of recession.

Sainsbury remains firm after saying the pace of its sales decline was moderating as December sales picked up from a weak November. Like-for-like sales in the 12 weeks to January 1 fell by 1.2 per cent.

Also in the sector, Tesco is a touch firmer, but Morrison is down on a `sell' note.

GUS is higher after saying it is comfortable with full-year expectations as solid figures from Experian offset a 1 per cent rise in 15-week like-for-like sales at Argos.

Dixons is also firmer after its well- received numbers yesterday.

Reuters is up after saying its revenue recovery is continuing. The group sees Q1 recurring revenues falling by 1.5 per cent, a smaller-than-expected decline. Person is firmer in sympathy and ahead of its update.

Also in the media sector, ITV is rallying amid fresh bid speculation.

Tobacco stocks are firm on positive comment, with BAT and Gallaher rising.

But AstraZeneca is again weaker on Crestor safety concerns, while Alliance Unichem is lower on a downgrading on valuation worries.

Elsewhere, Hanson is softer as profit- taking follows yesterday's gains on sector consolidation speculation.



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