LONDON MARKETS: Sainsbury, Aggreko Lead Gains For FTSE 100

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- U.K. stocks climbed Wednesday, with J Sainsbury PLC shares gaining after a trading update from the supermarket-chain operator.

The FTSE 100 rose 0.6% to 6,407.22, with retail stocks moving higher, led by a 4.2% rise in Sainsbury shares. The company posted a 1.7% decline in fiscal third-quarter same-store sales, excluding fuel, but the decline was better than expectations for a drop of about 3%. The period included the key Christmas season.

Other retail stocks rose, with Tesco PLC shares up 2.8%. Britain's largest supermarket chain is due to release a trading update on Thursday. Wm Morrison Supermarkets PLC pushed 2.4% higher, and Marks & Spencer PLC added 2.2%.

Aggreko PLC shares rose 3.3% as the temporary-power provider said it sees a small increase in 2014 profit after it won a two-year contract in Argentina and extended an existing contract with the same customer by two years.

Most energy shares managed to move higher as Brent oil dipped below $50 a barrel for the first time since 2009, but Tullow Oil PLC was off 0.1% and energy-engineering firm Weir Group PLC fell 1.2%. Meanwhile, Royal Dutch Shell PLC turned 0.3% higher. The oil company has agreed to pay about $80 million to compensate a Nigerian community for damage from two oil spills in 2008.

Elsewhere, Persimmon shares rose 0.3% following the home builder's report that it sold 17% more homes at higher prices in 2014.

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