Market Report: Good news for Royal Mail shareholders

 

There was a delivery of glad tidings for Royal Mail shareholders yesterday as the City speculated it will make more cost savings.

The company announced plans to bring forward collection times at almost half its postboxes to before 3pm. Tony Cross, market analyst at Trustnet Direct, said: “News of changes to collection schedules raises hopes of efficiency savings.”

Royal Mail has argued that many of its rural collections are uneconomic, but the regulator Ofcom has ruled that it must have post- boxes within half a mile of 98 per cent of UK households. The company said: “Rather than decommission uneconomic postboxes ... [we] will ensure their viability by improving the efficiency of collection arrangements.”

The plan was welcomed by the City and the shares were among the top risers on an otherwise downbeat day. It added 12.5p or 3 per cent to 426.5p. It is well above last year’s 330p float price but far behind its January peak of 615p.

The FTSE 100 finished a poor week by losing 30.01 points to close at 6,567.36. It is down 2.4 per cent so far this month. Jasper Lawler, an analyst at CMC Markets UK, said: “The most recent global rally in stocks started in April during the first quarter’s earnings season. The FTSE 100 has now almost retraced the entire rally.”

Precious metal prices rallied on safe-haven demand, which in turn pushed metal miners up. Mexican miner Fresnillo sparkled 31.5p brighter to 1,012p, gold digger Randgold Resources rose 40p to 5,110p, and mid-tier African Barrick Gold advanced 3.1p to 252p.

The AIM-listed construction and property consultant Sweett Group has been embroiled in a Serious Fraud Office investigation into allegations of corruption involving a United Arab Emirates-based employee. The share price has fallen nearly 50 per cent since early December. But a group of directors and their families ploughed in to buy nearly £80,000 of shares, priced at 35.13p each yesterday, and it built up a 1.75p rise to 37.5p.

African Potash secured investment of up to $3.75m (£2.23m) to develop the Lac Dinga project in the Republic of Congo but slipped 0.25p to 3.25p.

Start your day with The Independent, sign up for daily news emails
Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
Arts and Entertainment
Keira Knightley and Matthew Macfadyen starred in the big screen adaptation of Austen's novel in 2005
tvStar says studios are forcing actors to get buff for period roles
News
Prince William and his wife Catherine, Duchess of Cambridge show their newly-born daughter, their second child, to the media outside the Lindo Wing at St Mary's Hospital in central London, on 2 May 2015.
news
ebooks
ebooksA celebration of British elections
  • Get to the point
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

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before