Market Report: Barclays attracts on talk of job cuts

The jobs cull at UBS has paved the way for other banks to start swinging the axe in their investment bank divisions, City sources reckon. If Barclays is sharpening its axe for the new year, it could be time to start buying its shares, according to analysts at Goldman Sachs. They think potential "balance-sheet shrinkage, cost cuts and an exit from sub-scale businesses" at Barclays Investment Bank and a "restructure [of] its operations at the group's strategy review" in February would be a "source of opportunity".

Goldman Sachs analysts said in a note: "If Barclays delivers on a business plan to generate returns that match the group's cost of capital, the stock could offer sector-leading upside, on our analysis." They gave it a buy rating and raised their target price to 320p. The shares shot up on the news and ended at the top of the benchmark index, up 15.55p to 249.75p.

Fellow bank HSBC got a price-target upgrade to 630p and a buy rating from Investec's Ian Gordon, who thinks the "downgrade cycle may finally be over". The shares edged up 22.5p to 618.3p after the bank said it received an approach for its 15.6 per cent stake in the Chinese insurer Ping An ,and is considering selling it in a deal which might raise more than $9bn (£5.7bn).

The FTSE 100 index recovered the sharp sell-off seen on Friday and raced up 132.07 points to 5,737.66 as optimism swept across Wall Street and the City on hopes the US is making progress towards avoiding the feared fiscal cliff next year. Meanwhile, mediation efforts in Israel, with UN Secretary General Ban Ki-moon heading to Egypt, also helped calm nervous investors. With the appetite for risk back on, mining stocks moved up the blue-chip index.

After BP was hit last week by a record United States criminal fine of £2.8bn over the Gulf of Mexico disaster, the energy giant was still in focus amid speculation it could be vulnerable to a takeover.

The oil major is the cheapest of the non-state oil companies by market value relative to reserves, earnings and output, according to Bloomberg, sparking theories it could become a target.

Also getting the Square Mile chattering around BP are reports that it is planning a share buyback of at least $4bn, using the proceeds from the sale of its half of its Russian joint venture to Rosneft. The buyback could go some way to compensating investors who have been hit by the share-price fall since the Gulf of Mexico spill in 2010, and BP's shares surged 15p to 431.6p.

News of a £36m placing from online supermarket Ocado will have hit hedge funds that have been shorting the stock. Financial information group Markit said it is the fourth-most borrowed stock in the FTSE All Share Index, with around 16.5 per cent of stock out on loan. The shares checked in a 14.45p gain to 75p, topping the mid-cap index.

Oil rig maker Lamprell's fifth and worst profit warning laid bare all its issues and investors decided it was time to start buying its shares. They gushed up 12p to 81.25p.

On AIM, shares in Petrel Resources, the Irish-based oil and gas explorer, were gushing again and lifted 7.12p to 23.25p. Earlier this month, its shares spurted up more than 300 per cent after it said it had made a potential billion-barrel discovery.

Synthetic fuels group Oxford Catalysts has raised £1.3m through the sale of 933,687 shares to a subsidiary of US-based Ventech Engineers at a 44 per cent premium to the mid-market share price. The deal fuelled a share price rise of 19p to 112.5p.

Wolf Minerals received credit approval of £75m towards the funding of the Hemerdon tungsten and tin mine in Devon, and its shares dug up a 1.12p gain to 14.25p. Software group WANdisco has bought Silicon Valley-based Alto Stor to help it increase its "big data" ability, and its shares lifted 10p to 447.5p.

FTSE 100 Risers

Randgold Resources 6,655p (up 305.0p, 4.80 per cent) Investors were willing to invest in riskier stocks again and miners and banking stocks were back in favour. The Mali-focused miner got a boost from analysts at RBC Capital, who gave it an outperform rating.

ARM Holdings 747p (up 36.0p, 5.06 per cent) The computer microchip designer was one of the top gainers in a rising market.

FTSE 100 Fallers

Melrose 206.9p (down 2.0p, 0.96 per cent) The engineer failed to recover from Friday's falls after it warned on the outlook for 2013. Analysts at Panmure Gordon reduced their share price target to 225p from 270p and rated it a hold yesterday.

G4S 242.4p (down 1.7p, 0.70 per cent) The security firm that has been trying to recover from its Olympics fiasco was hit by a downgrade from Credit Suisse, reducing it to neutral.

FTSE 250 Risers

Lonmin 515p (up 43.7p, 9.27 per cent) The platinum miner gained clearance to proceed with a crucial $817m (£513m) rights issue after shareholders voted in favour.

London Stock Exchange 987p (up 51.0p, 5.45 per cent) The share price of the exchange soared despite getting a rating cut from analysts at JPMorgan. They reduced the target price to 886p, and rated it underweight.

FTSE 250 Fallers

Mitie Group 280p (down 10.0p, 3.45 per cent) The outsourcer expects a revenue increase over the next six months after a clutch of contract wins but its pre-tax profit in the past six months only moved up 1.9 per cent.

Supergroup 617.5p (down 21.0p, 3.29 per cent) The fashion group failed to recover after Numis Securities' Andrew Wade reduced his rating to sell on Friday.

Life & Style
Sampling wine in Turin
food + drink...and abstaining may be worse than drinking too much, says scientist
Arts & Entertainment
Kingdom Tower
architecture
Sport
Jose Mourinho, Chelsea players celebrate Demba Ba's goal and Gus Poyet
sportLive coverage of today's final game between Chelsea and Sunderland
Arts & Entertainment
Game of Thrones writer George R.R. Martin has been working on the novels since the mid-Nineties
books
VIDEO
News
Easter a dangerous time for dogs
these are the new ones. Old ones are below them... news
News
Brand said he
people
Sport
Roger Federer celebrates his victory over Novak Djokovic in the Monte Carlo Masters
sport
Voices
Actor Zac Efron
voicesTopless men? It's as bad as Page 3, says Howard Jacobson
Arts & Entertainment
The monster rears its head as it roars into the sky
film
Voices
For the Love of God (2007) The diamond-encrusted skull that divided the art world failed to sell for
its $100m asking price. It was eventually bought by a consortium
which included the artist himself.
voicesYou can shove it, Mr Webb – I'll be having fun until the day I die, says Janet Street-Porter
Extras
indybestFake it with 10 best self-tanners
Arts & Entertainment
Madonna in her music video for 'Like A Virgin'
music... and other misheard song lyrics
News
Much of the colleges’ land is off-limits to locals in Cambridge, with tight security
educationAnd has the Cambridge I knew turned its back on me?
News
peopleOrlando Bloom the pin-up hero is making a fresh start
News
Who makes you happy?
happy listSend your nominations now for the Independent on Sunday Happy List
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

1st Line Helpdesk Engineer Apprentice

£150.00 per week: QA Apprenticeships: This company has been providing on site ...

Telesales & Sales Support Apprentice

£221.25 per week: QA Apprenticeships: This company is a well established Inter...

Client Relationship Manager - SQL, Python

£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...

**Financial Services Tax**

£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...

Day In a Page

How I brokered a peace deal with Robert Mugabe: Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC

How I brokered a peace deal with Robert Mugabe

Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC
Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'

British Muslims's Happy video attacked as 'sinful'

The four-minute clip by Honesty Policy has had more than 300,000 hits on YouTube
Church of England-raised Michael Williams describes the unexpected joys in learning about his family's Jewish faith

Michael Williams: Do as I do, not as I pray

Church of England-raised Williams describes the unexpected joys in learning about his family's Jewish faith
A History of the First World War in 100 moments: A visit to the Front Line by the Prime Minister's wife

A History of the First World War in 100 moments

A visit to the Front Line by the Prime Minister's wife
Comedian Jenny Collier: 'Sexism I experienced on stand-up circuit should be extinct'

Jenny Collier: 'Sexism on stand-up circuit should be extinct'

The comedian's appearance at a show on the eve of International Women's Day was cancelled because they had "too many women" on the bill
Cannes Film Festival: Ken Loach and Mike Leigh to fight it out for the Palme d'Or

Cannes Film Festival

Ken Loach and Mike Leigh to fight it out for the Palme d'Or
The concept album makes surprise top ten return with neolithic opus from Jethro Tull's Ian Anderson

The concept album makes surprise top ten return

Neolithic opus from Jethro Tull's Ian Anderson is unexpected success
Lichen is the surprise new ingredient on fine-dining menus, thanks to our love of Scandinavian and Indian cuisines

Lichen is surprise new ingredient on fine-dining menus

Emily Jupp discovers how it can give a unique, smoky flavour to our cooking
10 best baking books

10 best baking books

Planning a spot of baking this bank holiday weekend? From old favourites to new releases, here’s ten cookbooks for you
Jury still out on Manchester City boss Manuel Pellegrini

Jury still out on Pellegrini

Draw with Sunderland raises questions over Manchester City manager's ability to motivate and unify his players
Ben Stokes: 'Punching lockers isn't way forward'

Ben Stokes: 'Punching lockers isn't way forward'

The all-rounder has been hailed as future star after Ashes debut but incident in Caribbean added to doubts about discipline. Jon Culley meets a man looking to control his emotions
Mark Johnston: First £1 million jackpot spurs him on

Mark Johnston: First £1 million jackpot spurs him on

The most prize money ever at an All-Weather race day is up for grabs at Lingfield on Friday, and the record-breaking trainer tells Jon Freeman how times have changed
Ricky Gervais: 'People are waiting for me to fail. If you think it's awful, then just don't watch it'

Ricky Gervais: 'People are waiting for me to fail'

As the second series of his divisive sitcom 'Derek' hits screens, the comedian tells James Rampton why he'll never bow to the critics who habitually circle his work
Mad Men series 7, TV review: The suits are still sharp, but Don Draper has lost his edge

Mad Men returns for a final fling

The suits are still sharp, but Don Draper has lost his edge
Google finds a lift into space will never get off the ground as there is no material strong enough for a cable from Earth into orbit

Google finds a lift into space will never get off the ground

Technology giant’s scientists say there is no material strong enough for a cable from Earth into orbit