Marks & Spencer bucked the trend in the retail sector yesterday to rise more than 4 per cent amid rumours that it was about to unveil an acceleration of its profit recovery and a share buyback programme.

M&S shares rose 25p to 592p as Rod Whitehead, a Deutsche Bank analyst, set an 815p price target and said that the shares could go 42 per cent higher than this, advising clients to buy before interim results that are due on November 6.

M&S shares have lost 20 per cent over the past four months over concerns that rising interest rates would hit consumer spending, but Deutsche Bank believes that a store revamp will start to show in boosted profits in the second half of the financial year.

The FTSE 100 ended up just 9.2 points at 6,465.9 as soaring mining stocks offset plummeting housebuilders and property companies. Sky-high copper prices made Antofagasta the blue chips’ top riser, closing up 52½p at 843p, with BHP Billiton the No 2, up 94p at £17.50. Vedanta Resources rose 100p to £22.35. All three are now at all-time highs. There were also unconfirmed reports from Australia that BHP will announce what could be the world’s largest gold discovery in South Australia.

Amid the excitement, vague talk that Xstrata, up 145p to £32.89, might bid for Lonmin, rising 61p to £33.83, also resurfaced, with suggestions that a bid would have to be at £45, the price that it reached before a warning over production issues.

Smiths Grouprose 23p to £10.50 on speculation of a bid to take over and then break up the company. At results on Thursday, Keith Butler-Wheelhouse, the chief executive, is expected to announce that he is stepping down. Credit Suisse reinitiated coverage with a “buy” and an £11.60 price target, while Citigroup said that a full break-up of the business’s three divisions would be worth £12.18.

Tesco closed up 5p at 447½p after Citigroup, the house broker, raised it from a “hold” to “buy” with a 500p target, saying that growth from its new stores in the United States was yet to be factored in to the price.

Northern Rock zigzagged heavily, rising at one point by 27½p before closing down 22p at 172p as speculators tried to value the business. About half the shares are said to be on loan to short-sellers. JPMorgan said that “the situation is still deteriorating” and that a heavily discounted sale was the most likely outcome. It set 250p as its target.

Wolseley, which ended the day down 41p at 807½p, set the bears running among property stocks and housebuilders, after it gave warning that the US housing market was not recovering and the demand for home improvements was starting to weaken.

Taylor-Wimpey, Britain’s only housebuilder with direct exposure in America, fell 16¾p to 271p. Barratt Developmentsfell 36½p to 749½p and Persimmon was off 26½p at 906½p.

Hammerson dropped 37p to £11.28 and Liberty International fell 36p to £11.14 after JPMorgan said that property stocks could lose up to another 40 per cent if the credit crunch weighed on the City.

New York: Financial shares weakened on news that the sub-prime lending turmoil may have hit Germany’s largest bank. The Dow Jones industrial average closed 61.10 points down at 13,759.10.

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