Market Report: Image is all as Burberry shoots up the Footsie

It may not be the height of fashion for investors in the Square Mile at the moment, but Burberry is still very much in vogue with shoppers. Shares in the luxury brand were flying off the shelves yesterday on evidence that the popularity of its trench coats and handbags is continuing to grow.

Since reaching an all-time high last July of 1,600p, the group has failed to move above that. Last night, however, it closed close to the top of the Footsie after Credit Suisse upgraded its advice to "outperform" following a survey of 20 of the world's most upmarket department stores.

Scribblers from the broker noted that, compared to last year's results, an increasing number of respondents believed the image of Burberry – at one time more linked to football hooligans than fashionistas – was now at least at the same level as brands such as Louis Vuitton or Chanel.

At the same time, nearly half of those surveyed said they expected Burberry to perform better than its luxury rivals while all planned to either increase or keep steady the amount of space in their stores dedicated to its products. These findings, said the analysts, suggested "sustained, top-line outperformance" for the group, adding that it looked "healthier than ever".

Burberry's response was to shoot up 68p to 1,392p, with the move coming amid the revival of speculation it could become a bid target. Credit Suisse's scribes believe its 100 per cent free float meant there was a "potential takeover risk", although traders, who have heard the idea many times, were unimpressed.

Considering the boom in growth it is enjoying from China, Burberry will not have been harmed by the shock decision of the country's central bank to cut interest rates in an attempt to prop up growth.

It meant the lack of activity from the Bank of England was forgotten as the heavyweight miners charged up on the news. Rio Tinto and Xstrata raced up 115.5p to 3,015p and 28.2p to 966.8p, helping the FTSE 100 rise 63.68 points to 5,447.79, although US Fed boss Ben Bernanke, playing down hopes of stimulus measures, dampened the mood late in the day.

Having watched Glencore reach an all-time low of 334.35p last week, the trading giant's boss, Ivan Glasenberg, has decided to give it a push. The group revealed he has spent nearly £10m on almost 3 million shares, raising his stake to 15.8 per cent.

Given a lock-up expired last month on employees' shares – including some of Mr Glasenberg's – traders were encouraged by the fact he was buying instead of selling. The chief executive had promised to spend a "substantial" proportion of the recent £70m dividend he received on shares.

The vote of confidence helped lift Glencore 13.45p to 361.2p, while it was also helped by the news that Australian regulators have approved its takeover of Canadian grain giant Viterra.

Tullow Oil spurted up 30p to 1,468p after revealing it had struck oil off the Ivory Coast, giving a boost to the explorer's hopes of finding black gold in other nearby prospects.

Diageo slipped 4p to 1,577p as Liberum Capital's Pablo Zuanic suggested it may need a name change in order to achieve its goal of taking control of the world's biggest tequila brand, Jose Cuervo. "Sealing the deal may be as simple as buying shares back to pay [Cuervo owners the Beckmann family] and rechristening Diageo," said the analyst, who suggested "The Johnnie Cuervo Walker Co".

On the FTSE 250, Kesa Electricals powered up 4.24p to 54.1p following promising sales data from the high street. Fund manager Schroders has raised its stake in the retailer, which will be relegated to the small-cap index at the end of next week, to more than 11 per cent.

A rather busy session left Synergy Health 40.5p better off at 864.5p. As well as publishing its full-year results, the sterilising equipment supplier also announced a share placing and revealed it had struck a $25.1m (£16.3m) deal to buy US rival SRI/Surgical Express.

The widespread rally was accompanied by gossips reheating a number of familiar bid tales. Chip designer CSR (6.4p better off at 208p) and iron ore producer Ferrexpo (7.8p better off at 207p) were among those once again finding themselves the subject of takeover speculation, although dealers were playing it down.

Down on Aim, Ithaca Energy shifted up 5.75p to 115p on the start of oil exports from its Athena field in the North Sea. The explorer remains more than a third lower than before its admission last week that takeover talks had ended without a deal being struck – some, however, still hope it could receive a hostile approach.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Voices
Barn owls are among species that could be affected
charity appeal
News
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
Sport
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
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

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas