Market Report: Just Eat fell below its float price as the tech rout hit sentiment
Wednesday 09 April 2014
Mothercare slumped to a 22-month low yesterday after Cantor Fitzgerald warned the struggling mother and baby retailer is "running out of options".
Over a third of its value was wiped out in January after a profit warning and the surprise departure of chief executive Simon Calver. Investors are hoping tomorrow's fourth quarter report will bring news of a turnaround strategy from replacement Mark Newton-Jones.
But Cantor yesterday said it expects "another poor trading update", adding that "there is room for further downgrades if trading has continued to deteriorate". The broker cut its target price by 25 per cent to 151p. Mothercare was down 9.25p to 162.75p.
Technology stocks continued to take a pummelling worldwide, with two recent market entrants feeling the heat on the Footsie: AO World lost 15p to 280p, while Just Eat, starting unconditional trading, fell below its 260p float price for the first time, off 14p at 250p.
Wider sentiment was dented by the tech rout, with the FTSE 100 losing 32.15 points at 6,590.69. News of Sports Direct founder Mike Ashley selling a 4 per cent stake in the business saw the retailer suffer its biggest one-day decline since December. Sports Direct closed down 82.5p at 811p.
Ashtead, which rents industrial equipment, also suffered a heavy correction, 51.5p lighter at 901p. In a bear market, traders took profit, with the company trading at an all-time high last week.
On the FTSE 250, generic drug maker Hikma Pharmaceuticals flopped 152p to 1,512p after UBS told investors to put the brakes on. The company is trading near UBS's target price.
Office2office revealed US investor Nicholas D Gerber is pushing for a reverse takeover of the group, led by his fund management business and a Bulgarian website developer. Office2office, up 0.5p at 21.25p, said the plan had "no strategic or commercial logic".
AIM-listed gold explorer Hummingbird Resources climbed 2.75p to 58.75p after said it thinks its Dugbe 1 project in Liberia could be "significantly" bigger than first thought.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 5 The Greece debt crisis explained in less than 100 words
Hilary Swank: Million Dollar Baby star says she turns down roles to care for elderly father
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
The Greece debt crisis explained in less than 100 words
Eiji Tsuburaya: Monster movie pioneer honoured in interactive Google Doodle
Bakery sends 'horrific' version of Frozen-themed birthday cake to unsuspecting customer
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...