Proactive Investors -
- FTSE 100 up 40 points at 7,662
- US markets set to extend gains after Meta fireworks
- Wizz Air (LON:WIZZ) jumps as passenger numbers rise, upgrade
London rides on the wave of renewed US optimism
Blue-chips remain in the green lifted by the positive mood across the pond.
AJ Bell's investment director Russ Mould said while the scorecard for the Magnificent Seven in the current earnings season to date "is mixed, Amazon (NASDAQ:AMZN) and Meta certainly produced stand-out quarterly updates, with Meta unveiling a maiden dividend in what felt like a significant milestone."
He added that it "feels a healthier situation to have the markets driven by strong earnings and corporate success rather than ongoing guesswork about when central banks are going to cut rates."
Superdry skyrockets on takeover talk, hedge fund takes stake - report
Shares in Superdry PLC (LON:SDRY) have leapt 64% after The Times reported a hedge fund has taken a 5% stake and increasing talk of a bid for the embattled retailer.
The Times reported a Norwegian-based alternative investment fund has bought a 5.3% stake in the Cheltenham-based retailer, according to regulatory filings.
It is understood that First Seagull considers Superdry to be ripe for a bid after a series of profit warnings over the past year drove down its share price.
Sycamore Partners, an American private equity company, and Authentic Brands Group, which owns Ted Baker (LON:TED) and Forever 21, are said to have Superdry on their radars, the report said.
The Times quoted sources who suggested that the value of Superdry owned by a brand management company would be about £400 million to £600 million, compared with its present market cap of about £34 million.
At their peak in early 2018 the company’s shares were just shy of £20, giving it a valuation above £1.7 billion.
The firm has struggled in recent times and reports this week said the firm was looking at cutting costs which could include store closures.
Close Brothers slides on downgrade, Electrolux warns
Elsewhere, AO World is down 0.3% and Curry’s is down 0.7%, missing out on the market rally which may reflect a warning from Electrolux.
The firm warned that weak demand will continue into 2024 causing a continued fall in earnings, after sales in a “challenging” 2023 were hit by high interest rates, inflation and geopolitical tensions.
Operating income at the world’s second-largest home appliances maker more than halved last year on flat sales.
Shares in Electrolux slumped 6.0%.
Meanwhile, the leading faller in the FTSE 250 is Close Brothers, down 3.6%, hit by a downgrade by RBC to ‘sector perform’ from ‘outperform.’
The broker has cut its price target to 650p from 800p.
Utilities rise on inflation busting price rises
Severn Trent (LON:SVT) and United Utilities are prominent risers in the FTSE 100 after Water UK, the industry trade body, said bills would increase by 6% or £2 a month on average next financial year – far more than the current 4% inflation rate.
Pennon Group (LON:PNN) is also higher, rising 1.3%.
Water UK said the average combined bill for water and sewage services would be £473 – or £1.29 a day – from April.
Elsewhere, Sainsbury is up 2.2% ahead of its strategy update next week.