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.

PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
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

BA/PM,EMIR/Dodd-Frank,London,£450-650P/D

£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...

Senior Analyst - ALM Data - Banking - Halifax

£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...

Java developer - Banking - London - Up to £600/day

£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...

Liquidity Reporting-Basel III-LCR-Bank-£400/day

£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...

Day In a Page

Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
How live cinema screenings can boost arts audiences

How live cinema screenings can boost arts audiences

Broadcasting plays and exhibitions to cinemas is a sure-fire box office smash
Shipping container hotels: Pop-up hotels filling a niche

Pop-up hotels filling a niche

Spending the night in a shipping container doesn't sound appealing, but these mobile crash pads are popping up at the summer's biggest events
Native American headdresses are not fashion accessories

Feather dust-up

A Canadian festival has banned Native American headwear. Haven't we been here before?
Boris Johnson's war on diesel

Boris Johnson's war on diesel

11m cars here run on diesel. It's seen as a greener alternative to unleaded petrol. So why is London's mayor on a crusade against the black pump?
5 best waterproof cameras

Splash and flash: 5 best waterproof cameras

Don't let water stop you taking snaps with one of these machines that will take you from the sand to meters deep
Louis van Gaal interview: Manchester United manager discusses tactics and rebuilding after the David Moyes era

Louis van Gaal interview

Manchester United manager discusses tactics and rebuilding after the David Moyes era
Will Gore: The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series

Will Gore: Outside Edge

The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series
The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz