Market Report: InterContinental Hotel shareholders 'set for major windfall'


InterContinental Hotel shareholders could be set for a major windfall this year. The hotel group jumped to the top of the index after an upgrade from the boutique investment bank Bryan, Garnier yesterday.

The bank thinks IHG, up 71p to 1,937p, could return up to $300m (£182m) to investors this year. The prediction came as IHG announced a share buyback in the US.

Barclays gave its verdict on the two state-backed banks yesterday, favouring Lloyds over Royal Bank of Scotland. While Lloyds is not cheap, down 1.38p at 77.37p, Barclays thinks it still offers good value, with good dividends likely in the medium term.

RBS, meanwhile, is taking a “longer, harder road” that is “highly dependent on the successful execution of an ambitious cost reduction plan”. It fell 6.2p to 299.1p.

HSBC initiated coverage of Royal Mail, up 6.5p to 581.5p, with an overweight rating. The bank thinks modernisation of sorting equipment and IT systems has bought stability and thinks investors could soon benefit from property sell-offs, a source of contention during last year’s float.

Anglo American added 28p to 1,439.5p after moving closer to ending ongoing strikes at its South African platinum mines. The company’s annual report also revealed Mark Cutifani, the chief executive, took home £891,000 in basic pay and £1.2m in shares and bonuses last year.

The wider mining sector enjoyed a rally amid speculation that metal-hungry China is set to introduce further stimulus measures to prop up its economy. Miners added 6.6 points to the FTSE 100, which closed up 14.73 points at 6,557.17.

Mid-cap builder Balfour Beatty, down 6.2p at 276.2p, announced a £200m deal in Dubai to connect the world’s largest shopping centre, Dubai Mall, with the world’s tallest building, Burj Khalifa.

XLMedia, which creates websites to generate leads for online gamblers, raised £41.8m on its AIM debut, jumping to 66.5p from its offering price of 49p.

Digital voucher company Eagle Eye announced plans to raise £6m on AIM today, in a flotation that would value the company at around £30m.

Start your day with The Independent, sign up for daily news emails
ebooksA celebration of British elections
  • Get to the point
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

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Guru Careers: Management Accountant

£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
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