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.

News
scienceExcitement from alien hunters at 'evidence' of extraterrestrial life
Life and Style
Customers can get their caffeine fix on the move
food + drink
Sport
sport
Sport
David Moyes gets soaked
sport Moyes becomes latest manager to take part in the ALS challenge
PROMOTED VIDEO
Life and Style
techCould new invention save millions in healthcare bills?
News
peopleEnglishman managed quintessential Hollywood restaurant Chasen's
Life and Style
food + drinkHarrods launches gourmet food qualification for staff
Voices
Mosul dam was retaken with the help of the US
voicesRobert Fisk: Barack Obama is following the jihadists’ script
Arts and Entertainment
Michael Flatley prepares to bid farewell to the West End stage
danceMichael Flatley hits West End for last time alongside Team GB World champion Alice Upcott
News
Members and supporters of the lesbian, gay, bisexual, transgender (LGBT) community walk with a rainbow flag during a rally in July
i100
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Life and Style
Black Ivory Coffee is made using beans plucked from elephants' waste after ingested by the animals
food + drinkFirm says it has created the "rarest" coffee in the world
Arts and Entertainment
Loaded weapon: drugs have surprise side effects for Scarlett Johansson in Luc Besson’s ‘Lucy’
filmReview: Lucy, Luc Besson's complex thriller
Arts and Entertainment
Jamie T plays live in 2007 before going on hiatus from 2010
arts + entsSinger-songwriter will perform on the Festival Republic Stage
Life and Style
food + drinkThese simple recipes will have you refreshed within minutes
News
Jermain Defoe got loads of custard
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Business Analyst - Banking - London - £550 - £650

£550 - £650 per day: Orgtel: Business Analyst - Traded Credit Risk - Investmen...

Data Centre Engineer - Linux, Redhat, Solaris, SAN, Puppet

£55000 per annum: Harrington Starr: A financial software vendor at the forefro...

.NET Developer

£600 per day: Harrington Starr: .NET Developer C#, WPF,BLL, MSMQ, SQL, GIT, SQ...

Data Centre Engineer - Linux / Redhat / Solaris / Puppet / SAN

£65000 per annum: Harrington Starr: A financial software vendor at the forefro...

Day In a Page

All this talk of an ‘apocalyptic’ threat is simply childish

Robert Fisk: All this talk of an ‘apocalyptic’ threat is simply childish

Chuck Hagel and Martin Dempsey were pure Hollywood. They only needed Tom Cruise
French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

The ugly causeway is being dismantled, an elegant connection erected in its place. So everyone’s happy, right?
Air strikes? Talk of God? Obama is following the jihadists’ script

Air strikes? Talk of God? Obama is following the jihadists’ script

The President came the nearest he has come yet to rivalling George W Bush’s gormless reaction to 9/11 , says Robert Fisk
Ebola outbreak: Billy Graham’s son declares righteous war on the virus

Billy Graham’s son declares righteous war on Ebola

A Christian charity’s efforts to save missionaries trapped in Africa by the crisis have been justifiably praised. But doubts remain about its evangelical motives
Jeremy Clarkson 'does not see a problem' with his racist language on Top Gear, says BBC

Not even Jeremy Clarkson is bigger than the BBC, says TV boss

Corporation’s head of television confirms ‘Top Gear’ host was warned about racist language
Nick Clegg the movie: Channel 4 to air Coalition drama showing Lib Dem leader's rise

Nick Clegg the movie

Channel 4 to air Coalition drama showing Lib Dem leader's rise
Philip Larkin: Misogynist, racist, miserable? Or caring, playful man who lived for others?

Philip Larkin: What will survive of him?

Larkin's reputation has taken a knocking. But a new book by James Booth argues that the poet was affectionate, witty, entertaining and kind, as hitherto unseen letters, sketches and 'selfies' reveal
Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?

Waxing lyrical

Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?
Texas forensic astronomer finally pinpoints the exact birth of impressionism

Revealed (to the minute)

The precise time when impressionism was born
From slow-roasted to sugar-cured: how to make the most of the British tomato season

Make the most of British tomatoes

The British crop is at its tastiest and most abundant. Sudi Pigott shares her favourite recipes
10 best men's skincare products

Face it: 10 best men's skincare products

Oscar Quine cleanses, tones and moisturises to find skin-savers blokes will be proud to display on the bathroom shelf
Malky Mackay allegations: Malky Mackay, Iain Moody and another grim day for English football

Mackay, Moody and another grim day for English football

The latest shocking claims do nothing to dispel the image that some in the game on these shores exist in a time warp, laments Sam Wallace
La Liga analysis: Will Barcelona's hopes go out of the window?

Will Barcelona's hopes go out of the window?

Pete Jenson starts his preview of the Spanish season, which begins on Saturday, by explaining how Fifa’s transfer ban will affect the Catalans
Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed