Market Report: Sparkle returns to luxury brands

Its handbags may sell for several hundred pounds, but shares in Mulberry are considerably cheaper, especially over the past couple of months. The luxury goods brand – which recently named a bag after US singer Lana del Rey – has very much fallen out of fashion, with its share price having been cut in half since May.

Partly to blame for the sharp fall was a disappointing set of results last month, when bosses revealed the start of the new financial year had seen sales growth fall dramatically. Its blue-chip rival Burberry's admission on Wednesday that it has also seen a slowdown hasn't helped, while nor have growing fears over the economy in China, a major market for the luxury sector.

Yesterday, however, Mulberry's fall was being attacked as overdone after Panmure Gordon's Philip Dorgan urged punters to snap up the shares. Reiterating his target price of 2,000p, the analyst highlighted the fact that the company's last update actually showed a significant acceleration in sales growth over the preceding six weeks, adding that he believed "this improved trend has continued".

In addition, he argued that concerns over China should not be taken so seriously given Mulberry currently only has one shop in Beijing and that "this continues to trade well".

With Mr Dorgan also repeating his belief that the company "has the product craftsmanship, design, innovation and quality to become a major global brand", it managed to climb 37p to 1,287p on Aim, although it still has a long way to go before getting near May's all-time high of 2,472p.

At the same time Burberry advanced 71p to 1,229p. It was one of the stocks to benefit from the latest Chinese GDP data which showed the country's slowdown was not worse than expected while still being bad enough to stoke hopes of further stimulus measures ahead.

The figures also boosted the miners, including Kazakhmys,42.5p stronger at 744p, and Eurasian Natural Resources, 15.2p stronger at 408.8p. The broker ING was arguing the former would rather swap its stake in the latter for other assets– such as Kazzinc, the zinc subsidiary of Glencore, 7p higher at 316.65p, instead of selling it for cash.

Meanwhile, Polymetal International ended up as the top blue-chip performer, jumping 56p to 877p after the Russian billionaire Alexander Mamut, who owns 10 per cent of the gold digger, called for its dividend to be increased. The FTSE 100 was lifted 57.88 points to 5,666.13, with just nine stocks ending the session in the red. G4S was one of them – the security services giant slipped back 4.3p to 278.7p as it continued to be hit by the fall-out from its Olympics failure.

After the media stocks benefited on Thursday from the news that ad agency Aegis, up 0.2p to 235.5p, is being snapped up by Japan's Dentsu, ITV – a constant subject of takeover rumours itself – was still going strong. The broadcaster powered up 2.7p to 74.95p as Berenberg's analysts kept their "overweight" rating on the stock.

Booker's share price has added almost 25 per cent this year, but yesterday the cash-and-carry wholesaler was heading south. While Shore Capital praised it as both an "excellent company" and "a market leader in its field", analysts from the broker calculated that following its rise only a handful of consumer companies in the world, including Coca-Cola and Guinness-brewer Diageo, up 14p to 1,679p, now had a higher earnings rating.

As a result, they decided to switch their recommendation to "sell", which saw Booker dip 2.35p to 88.95p. However, they did have plenty of praise for its boss Charles Wilson, who they said "may in time enter a hall of fame that contains the likes of Sir Kenneth Morrison, Sir Terry Leahy, Lord Sainsbury and Archie Norman".

At the other end of the mid-tier index, Petropavlovsk raced up 36.6p to 461.6p, although traders weren't getting too excited – despite the huge jump, the Russian miner's share price has finished the week almost exactly where it started it.

Down on Aim, oil explorer Bayfield Energy spurted up 5.5p to 18.5p after announcing a well in its Trintes field off the shore of Trinidad had been brought on production.

News
peopleFrankie Boyle responds to referendum result in characteristically offensive style
News
news
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
New Articles
i100... with this review
PROMOTED VIDEO
Voices
Holly's review of Peterborough's Pizza Express quickly went viral on social media
Sport
footballTim Sherwood: This might be th match to wake up Manchester City
Arts and Entertainment
musicHow female vocalists are now writing their own hits
New Articles
i100
News
ebooksAn unforgettable anthology of contemporary reportage
News
news
Arts and Entertainment
musicBiographer Hunter Davies has collected nearly a hundred original manuscripts
News
Blahnik says: 'I think I understand the English more than they do themselves'
people
Arts and Entertainment
Michelle Dockery as Lady Mary Crawley in Downton Abbey
TVInside Downton Abbey series 5
Life and Style
The term 'normcore' was given the oxygen of publicity by New York magazine during the autumn/winter shows in Paris in February
fashionWhen is a trend a non-trend? When it's Normcore, since you ask
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

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam