UK markets endured a rather bumpy ride on Tuesday, but ended the day marginally higher. The FTSE 100 index edged up by 9 points, or 0.2%, to close at 6,117. The FTSE 250 index pushed up by 16 points, or 0.1%, to close at 12,775.
Shares in Burberry (BRBY) rallied ahead by nearly 5%, which helped lift the overall large-cap FTSE 100 index. Investors bid the shares higher after the luxury retailer reported strong sales in the final three months of 2012. The company reported a 13% surge in retail sales and also demonstrated that it was still making progress in its all-important Asian markets.
"By region, Asia Pacific (led by Hong Kong and China) and emerging markets saw double-digit comparable store sales growth," stated the company in its quarterly trading update.
"Only a few months ago [Burberry] had issued a profit warning [due to] slowing Chinese sales. The stock market adage is that profit warnings come in threes, but it would seem not for Burberry," said Angus Campbell, head of market analysis at Capital Spreads. "Despite slowing sales in Europe, its global footprint and presence in Asia is outweighing the recession on the continent and so the stock is making its march back towards the dizzy heights set in 2011 and 2012 of £16."
Shares in Pearson (PSON) also rallied ahead on Tuesday by just over 3%, making it the second best gainer on the FTSE 100, after Burberry.
Meanwhile, trading in HMV (HMV) shares were suspended and management announced that it is seeking insolvency protection. This comes just after the demise of the digital camera specialist Jessops.
"Unfortunately, HMV is a sad story that tells of a company unable to foresee the winds of change within its industry and before it reacted it was too late," said Campbell.