FTSE 100 Closed Up Boosted by UK Retail, -2-

1103 GMT - Marks & Spencer Group booked an impressive Christmas quarter with strong seasonal food sales and a tailwind from menswear partly due to its partnership with the England soccer squad during the FIFA World Cup, Interactive Investor's head of investment Victoria Scholar says in a note. The U.K. retailer has been working to reposition itself as an omnichannel retailer, with near half of its growth through third-party brands and click-and-collect orders. "After a difficult year for the shares, M&S has been picking up lately, rallying by more than 20% over the last month," Scholar says. "But its commentary on the uncertain macroeconomic outlook appears to be weighing on shares today." Shares trade down 1.4% at 141.35 pence. ([e-mail])

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Parkmead's Gas Discovery Boost to Be Offset by Windfall Levies

1103 GMT - Parkmead's Dutch gas discovery and its ensuing benefit to its valuation from a quick and cheap tie-up and higher exposure to strong gas prices will be restrained by windfall taxes in the U.K. and the Netherlands, finnCap says in a note. "This results in a 2% cut to our risked NAV [net asset value] and price target to 184 [pence a share], which feels churlish given today's positive drilling news and the fact that UK windfall taxes provide a significant incentive for potential partners in its ongoing [Greater Perth Area] farmout process," analyst Jonathan Wright says. Shares are up 9.1% at 57.4 pence, having reached 62.9 pence earlier in the session. ([e-mail])

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Halfords Shares Slump After Profit Warning

1056 GMT - Halfords Group shares drop 19% to 176 pence after the U.K. bike and car-accessory retailer blamed staff shortages and worse-than-expected tyre demand for a full-year underlying pretax profit warning. The downgrade contrasts with well-received updates across the retail sector, Liberum Capital says, cutting its recommendation on the shares to sell from hold and its target price to 120p from 160p. The company's move towards selling car-maintenance services as well as products is sensible, but isn't significantly boosting profits and it remains exposed to consumers cutting back on non-essential purchases, Liberum says. "There are others in the sector on similar multiples--before today's guidance cut--that we prefer," Liberum analyst Adam Tomlinson says in a note. ([e-mail])

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(END) Dow Jones Newswires

01-12-23 1245ET