Market Report: Double Standards rock the markets

 

The City can be very fickle when it decides what stock is on or off the buy list, and yesterday the FTSE had particularly varying standards. Insurer Standard Life Investments was in but Standard Chartered Bank was out.

Scribblers at Morgan Stanley warned investors that in the short term the Asia- focused Standard Chartered is likely to face problems as China and India slow. The analysts warned that ahead of its third-quarter results at the end of the week, there are concerns about “softer financial markets and wealth management revenues” and emerging markets currency weakness. These “key concerns” mean they see “better value elsewhere”.  The stock was also suffering after analysts at Numis downgraded the group to a hold on Thursday and gave it a 1,500p price target for shares that are down 20.5p to 1,445p, and the bank was close to the bottom of the blue-chip index.

Meanwhile Standard Life was top of the table following an upbeat note from JP Morgan Cazenove. It rated the insurer as overweight and said investors could expect a £300m dividend payout this year. It was 8.7p better at 354.1p.

The blue-chip table managed to creep up despite the US government shutdown continuing to drag on. The FTSE 100 edged up 4.84 points to 6,453.88.

Alastair McCaig, market analyst at spreadbetter IG, said: “Considering the uncertainty surrounding America, the European markets have done very well to keep their heads above water; it will be even more impressive if they can maintain that form for the start of trading next week.”

“As next week progresses, equities and currencies will begin to factor in the possibility of the US hitting their debt ceiling more heavily, as well as the chance that they might default on their debts.  Due to the US government shutdown there has been an absence of the monthly non-farm payroll figures, which usually help the markets form an opinion of the economic health of the nation.”

GKN, which supplies car and plane parts around the world including to Jaguar Land Rover, drove up 8.4p to 352.9p after fresh data showed that new UK car registrations jumped 12.1 per cent last month.

The bookmaker William Hill may be suffering but Deutsche Bank think it’s a good long-term bet.  Despite revealing on Thursday that third-quarter profits were £20m lower than expected, scribblers at the bank think William Hill is in a good position. In a note entitled “Near term pain, but long term gain”, Deutsche  said: “New digital sign-ups were up 35 per cent and weekly active players increased 41 per cent in August and September – both harbingers of future profit growth when sports margins normalise.” The bank downgraded its forecasts for the book maker but kept a buy rating. William Hill dropped 5.2p to 407.8p.

Numis was impressed with Diageo, saying the Guinness-to-Smirnoff drinks giant is poised to benefit from the global market’s “robust growth”. The analysts rated Diageo a buy and the company glugged up 2.5p to 1,948.5p.

Analysts at Jefferies had a sweet spot for Tate & Lyle, slapping a buy rating on the sugar producer despite a rocky trading update. Tate & Lyle, the owner of the sweetener brand Splenda,  added 6p to 745p as the update was no worse than expected.

On the FTSE 250, Carpetright plummeted after a profit warning and news of the surprise exit of its chief executive. The retail chain fell 57p to 616.5p.

A number of retailers received buy ratings from analysts at UBS, and in focus was the Argos owner Home Retail Group, up 3.3p to 171p. UBS believes that the group, which also owns Homebase, has the potential to gain  market share. The electrical retailer Dixons Retail added 0.74p 46.39p.

The Russian gold miner Petropavlovsk said its part-owned iron ore group IRC has raised fresh capital. It is proceeding with a refinancing via an equity raising from Chinese investors, who will buy $134m of equity. It spurted 2p to 76.5p. 

On  AIM, Northcote Energy jetted 0.025p to 1.25p after increasing its proven oil reserves by 24 per cent to $76.7m, in comparison with its current market valuation of £12.29m.

The upmarket jeweller Theo Fennell officially left AIM yesterday. It was bought in August by a consortium including ex-Goldsmiths boss Jurek Piasecki.

Buy

Pendragon

Snap up shares in Pendragon, Jefferies insists. The broker notes the news that new UK car registrations are “still motoring” with volumes for the important September month showing continued strength, up 12 per cent. Jefferies thinks the car dealership business still has scope for expansion, and rates it a buy with a 40p target for shares that are 33.75p.

Sell

Carpetright

Flog shares in Carpetright, Cantor Fitzgerald suggests. The broker is concerned after the carpet retailer’s profit warning. It points out that profit forecasts have been downgraded, and questions the suitability of the format to a “fast-changing retail environment”. Cantor rates it a sell with a 500p target for shares that are 616.5p.

Hold

Serco

Hang on to shares in Serco, Peel Hunt advises. The broker thinks the outsourcer’s disposal of its occupational health business is in line with its strategy to “proactively manage its portfolio”. The disposal of the business, Peel says, is not material as the profits disposed of represent just 0.3 per cent of 2014’s earnings. Peel rates Serco a hold with a 590p target for shares that are 528.5p.

Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
The Pipes and Drums of The Scottish Regiments perform during the Opening Ceremony for the Glasgow 2014 Commonwealth Games at Celtic Park on July 23, 2014 in Glasgow, Scotland.
Commonwealth GamesThe actor encouraged the one billion viewers of the event to donate to the children's charity
Sport
Karen Dunbar performs
Entertainers showcase local wit, talent and irrepressible spirit
Sport
Members of the Scotland deleagtion walk past during the opening ceremony of the 2014 Commonwealth Games at Celtic Park in Glasgow on July 23, 2014.
PROMOTED VIDEO
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
Life and Style
fashion Designs are part of feminist art project by a British student
News
Very tasty: Vladimir Putin dining alone, perhaps sensibly
news
Life and Style
Listen here: Apple EarPods offer an alternative
techAre custom, 3D printed earbuds the solution?
Arts and Entertainment
Top guns: Cole advised the makers of Second World War film Fury, starring Brad Pitt
filmLt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a uniform
News
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
A scene from Shakespeare in Love at the Noel Coward Theatre
theatreReview: Shakespeare in Love has moments of sheer stage poetry mixed with effervescent fun
News
Joining forces: young British men feature in an Isis video in which they urge Islamists in the West to join them in Iraq and Syria
newsWill the young Britons fighting in Syria be allowed to return home and resume their lives?
Arts and Entertainment
The nomination of 'The Wake' by Paul Kingsnorth has caused a stir
books
News
i100
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
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

PMO Analyst - London - Banking - £350 - £400

£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...

Cost Reporting-MI Packs-Edinburgh-Bank-£350/day

£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...

Insight Analyst – Permanent – Up to £40k – North London

£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...

Test Lead - London - Investment Banking

£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game