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.

Start your day with The Independent, sign up for daily news emails
News
i100
News
Bobbi Kristina Brown, daughter of the late singer Whitney Houston, poses at the premiere of
people
News
people
News
The frequency with which we lie and our ability to get away with it both increase to young adulthood then decline with age, possibly because of changes that occur in the brain
scienceRoger Dobson knows the true story, from Pinocchio to Pollard
Voices
The male menopause: those affected can suffer hot flushes, night sweats, joint pain, low libido, depression and an increase in body fat, among other symptoms
voicesSo the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
Life and Style
health
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: DBA Developer - SQL Server

£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Customer Service Administrator

£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...

Recruitment Genius: Dialler Administrator

£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...

Ashdown Group: Contracts Manager - City of London

£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...

Day In a Page

Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

US betrayal of old ally brings limited reward

Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
VIPs gather for opening of second Suez Canal - but doubts linger over security

'A gift from Egypt to the rest of the world'

VIPs gather for opening of second Suez Canal - but is it really needed?
Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
The male menopause and intimations of mortality

Aches, pains and an inkling of mortality

So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

'How can I possibly be on the list with these writers I have idolised?'

Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

Bettany Hughes interview

The historian on how Socrates would have solved Greece's problems
Art of the state: Pyongyang propaganda posters to be exhibited in China

Art of the state

Pyongyang propaganda posters to be exhibited in China
Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

Vegetarian food gets a makeover

Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

The haunting of Shirley Jackson

Was the gothic author's life really as bleak as her fiction?
Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

Bill Granger's seaside-inspired recipes

These dishes are so easy to make, our chef is almost embarrassed to call them recipes
Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

Tourists are limp, leaderless and distinctly UnAustralian

A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen