Tesco slips on broker cut In the wider market, a 5.2pc drop on Japan's Nikkei 225 did not unnerve traders in London, who had already pushed the FTSE 100 2pc lower on Wednesday. Instead, the benchmark index stabilised on Thursday and edged up 29.82 points to 6,656.99, helped by a rise in US jobless claims and a revision downwards of first-quarter growth in America, boosting hopes the Federal Reserve will not wind down its stimulus programme in the near future. While analysts were behind Tesco's heavy fall, they were also the reason for some of the day's biggest risers. Oil services company John Wood added 15½ to 849p after Morgan Stanley analysts lifted their rating on the shares to "overweight" from "equal weight," arguing the business is "the best positioned in the sector to withstand a lower growth outlook for industry spending." Lloyds Banking Group was another company under the Morgan Stanley microscope. Experts at the broker, who have an "equal weight" rating on the state-backed lender, increased their price target on the shares to 70p from 54p and said the bank would be the biggest beneficiary of a pick-up in the UK housing market. They added that the prospect of a Lloyds dividend was "closer to the horizon" and shares in the lender duly advanced 1.16 to 61.8p. On the FTSE 250 - up 53.18 at 14,442.74 - analysts at UBS drove shares in Tullett Prebon and ICAP - inter-dealer brokers that act as go-betweens for financial institutions - higher after lifting their recommendation on both mid-cappers to "neutral" from "sell" on the prospect of improving market volumes. As a result, Tullett shares gained 20.1 to 295p and ICAP put on 20.8 to 370.3p. Elsewhere on the second-tier index, speculative interest helped defence equipment group Cobham increase 9.2 to 293.4p. The rising gold price lifted others, with precious metals miners notable gainers on the FTSE 100. Fresnillo added 67p to £11.56, Randgold Resources was 284p better at £52.25, and Polymetal International put on 32 to 690p. Utilities were once again under pressure in the wake of recent gains in sovereign bond yields in the UK and US, which have made the relatively attractive sector less appealing to investors. National Grid, which has a large number of US shareholders, fell 8½ to 788½p and Centrica declined 2.6 to 376p. But B&Q-owner Kingfisher recovered from an early 4pc drop to close 21.9 higher at 349.7p - a 6.7pc jump - despite posting a 28pc slide in quarterly retail profits. The shares were helped by comments from chief executive Ian Cheshire, who said on a conference call that were signs of a recovery in the housing market. Oil and gas exploration group Tullow Oil rose 14p to £10.43, even though the company disclosed that it was abandoning a disappointing well off the Ivory Coast. Instead, investors were cheered by news the Ghanaian government had approved the development plan for so-called TEN offshore oil project. TEN is in the Deepwater Tano contract area, in which Tullow has a stake of about 47pc. Tate & Lyle, however, shed 12½ to 836½p after reporting full-year results, which Panmure Gordon analysts said had met market expectations. They advised clients to take profits and cut their recommendation to "sell" from hold." On Aim, Snoozebox shares were boosted by news of a £10.1m fund-raising to keep the company afloat. The group, which transforms shipping containers into temporary accommodation, said it was placing 42.3m shares, mostly with pre-existing institutional shareholders and Snoozebox directors. The stock, which will account for 38.8pc of the group's share capital following the cash-call, has been conditionally priced at 24p apiece. If shareholders do not approve the deal at a forthcoming meeting and alternatives are not found, "the directors would have to take steps to cease trading," the company warned. The troubled business, which posted a £4,4m pre-tax annual loss last month, advanced ¾, or 3pc, to 25¾p.