Market Report: City experts call time on Asos


It was once only a brave investor who’d bet against fashion favourite Asos, but yesterday two City experts called time on the stock.

Goldman Sachs and Exane BNP Paribas reduced their rating of the online fashion business to neutral and Asos tumbled 529p to 6,296p. Exane said its huge share price rise – nearly 150 per cent in the past year – is a reason to change view.

Exane warned that Asos’s logistics “poses risk from short-term disruption”, while Goldman’s said evidence that launches in China and Russia have been successful is “still sometime away”. Neither disliked the Asos investment case, but called for a “pause for breath”.

Last week’s gains on the London market were wiped out as traders reacted to weak manufacturing data from the US and poor  Chinese PMI figures. The FTSE 100 fell 53.05 points to 6,773.28.

The airline easyJet was one of the worst performers, down 71p to 1,672p, when it cautioned that the timing of Easter will fall outside its first half results and will affect figures.

Marks & Spencer was one of the best performers after a buy note from Exane BNP Paribas which gave it a 570p target price, and it ticked up 12.3p to 493.2p.

Huge rises in profit and sales in the third quarter for London Stock Exchange helped it up 8p to 1,862p.

Bookie Ladbrokes remained weak, continuing a poor run for the stock. Traders said rumours of a €2.5m (£2m) betting payout from bookies involving four horses with links to legendary punter Barney Curley had hurt a number of betting firms. Ladbrokes lost 3.9p to 150.7p.

Full-year profit from small-cap defence expert Chemring fell 25.2 per cent as it was hit by a slowdown in US purchases. But results were as expected and forward guidance remained unchanged so it recovered 1p to 241p.

Kurdistan oil explorers and producers were knocked by a note from Goldman Sachs and Liberum Capital on risks around taking oil out of the country. Liberum said timing of exports are uncertain and political risks remain so FTSE 250-listed Afren fell 7.4p to 154.6p, AIM-listed Gulf Keystone Petroleum edged back 1.5p to 176p and Genel Energy slipped 24p to 1,005p.

Start your day with The Independent, sign up for daily news emails
Life and Style
Steve Shaw shows Kate how to get wet behind the ears and how to align her neck
healthSteven Shaw - the 'Buddha of Breaststroke' - applies Alexander Technique to the watery sport
footballShirt then goes on sale on Gumtree
Terry Sue-Patt as Benny in the BBC children’s soap ‘Grange Hill’
voicesGrace Dent on Grange Hill and Terry Sue-Patt
Arts and Entertainment
The sight of a bucking bronco in the shape of a pink penis was too much for Hollywood actor and gay rights supporter Martin Sheen, prompting him to boycott a scene in the TV series Grace and Frankie
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Abuse - and the hell that came afterwards

Abuse - and the hell that follows

James Rhodes on the extraordinary legal battle to publish his memoir
Why we need a 'tranquility map' of England, according to campaigners

It's oh so quiet!

The case for a 'tranquility map' of England
'Timeless fashion': It may be a paradox, but the industry loves it

'Timeless fashion'

It may be a paradox, but the industry loves it
If the West needs a bridge to the 'moderates' inside Isis, maybe we could have done with Osama bin Laden staying alive after all

Could have done with Osama bin Laden staying alive?

Robert Fisk on the Fountainheads of World Evil in 2011 - and 2015
New exhibition celebrates the evolution of swimwear

Evolution of swimwear

From bathing dresses in the twenties to modern bikinis
Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine