Market Report: Shop talk gives Asos a higher price tag

Miles and miles of high streets lie empty as retailers struggle to stay afloat but City scribblers think online fashion site Asos should actually open some shops. David Reynolds, analyst at broker Jefferies, reckoned Asos should "do an Apple" and set up giant, shiny flagship shops to "redefine the retail experience and build the style element of the brand".

If Asos chooses to take this advice, it won't be the first to have moved from online into physical space. Ebay opened a pop-up – temporary – shop in London last year, and Amazon is setting up Amazon Lockers for customers to pick up their purchases. Mr Reynolds thinks Asos has built a competitive brand that "has cracked the staid, but fragmented fashion arena".

He rates what chief executive Nick Robertson and his team have done and said the fashion brand's influence is growing, particularly with the important heavyweights in the fashion world. Mr Reynolds gave the shares a price target of 2,199p. Investors took note and they strutted up 88p to 1,988p.

The FTSE 100 managed to hang on to gains after a very choppy day, moving up 17.46 points to 5794.8. The rule is don't wear white after Labor Day, but traders were left waving the white flag when shock US employment figures emerged at lunchtime. Dealers were left reeling at their desks when August's employment stats – the non-farm payroll rise – turned out to be well below the expected 125,000, at just 96,000.

What had been an optimistic mood across trading floors following Thursday's ECB bond-buying plan quickly turned to melancholy. But the jobs stats make it much more likely the Federal Reserve will pump more money into the sluggish economy.

On the FTSE 100, miners remained popular as fears of the commodity boom coming to an end disappeared for now. Beijing stepped up infrastructure investment, and there are hopes that more measures to bolster growth will follow. The mining sector filled the top of the leaderboard. Evraz, Roman Abramovich's miner and steelmaker and Russia's largest steel producer, was top, up 33.7p to 260.4p.

In a dramatic 11th-hour rescue attempt of the proposed Glencore-Xstrata mega-merger, the commodities trader raised its offer for miner Xstrata. Glencore tumbled to the bottom of the FTSE 100, down 14.3p to 378.05p, while Xstrata moved up 35p to 1014p.

A note from analysts at Citi helped aerospace group Meggitt edge up 6.2p to 407.3p. Citi scribes said it would be ripe for mergers or could be a "potential acquisition candidate" itself.

Defensive stocks were still being shunned for riskier opportunities. Imperial Tobacco, down 82p to 2,262p, and British American Tobacco, off 63.5p at 3,173.5p, puffed toward the bottom.

Investors who have been dialling up Vodafone shares for their attractive dividends are starting to feel frustrated.

Like a caller stuck on hold, investors have been waiting for signs of dividend growth this year. Vodafone owns 45 per cent of the wireless mobile network joint venture Verizon Wireless. Partner, US-based Verizon, agreed to pay out a 3 per cent increase in its dividend on Thursday but made no mention of a dividend for the joint venture. Analysts at Jefferies put Vodafone on hold in June and reiterated their concerns on its growth yesterday.

They said: "Dividend yield is fundamental to Vodafone's defensive attractions. But even if the Verizon Wireless dividend payable next January were to rise above $10bn, we believe that Vodafone would still choose to pass on to shareholders less than last year's 4p special dividend."

Jefferies issued a share price target of 180p. The shares posted a drop of 1.9p to 177.1p.

Risk seekers on the FTSE 250 helped boost Ukrainian iron ore miner Ferrexpo 28.1p to 182.8p.

Traders still had it in them for a bit of gossip, with bets on again for online gaming group 888 Holdings. The rumours have been around before but some think a bidder could have the betting website on its radar. The shares rose 5.25p to 92.25p.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Billie Piper as Brona in Penny Dreadful
tvReview: It’s business as usual in Victorian London. Let’s hope that changes as we get further into the new series spoiler alert
Life and Style
A nurse tends to a recovering patient on a general ward at The Queen Elizabeth Hospital in Birmingham
Arts and Entertainment
No Offence
tvReview: No Offence has characters who are larger than life and yet somehow completely true to life at the same time spoiler alert
Chuck Norris pictured in 1996
ebooksA celebration of British elections
Arts and Entertainment
Sarah Lucas, I SCREAM DADDIO, Installation View, British Pavilion 2015
artWhy Sarah Lucas is the perfect choice to represent British art at the Venice Biennale
A voter placing a ballot paper in the box at a polling station
Arts and Entertainment
The Queen (Kristin Scott Thomas) in The Audience
theatreReview: Stephen Daldry's direction is crisp in perfectly-timed revival
  • 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

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Guru Careers: Software Engineer / Software Developer

£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...

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