Market Report: Sports Direct share price gets a kicking

 

Punters were taking the lead from Sports Direct chiefs yesterday as they dumped the retailer’s shares. Investors decided that the chief executive and finance director of the sportswear chain must know a thing or two about when to sell. Last week it emerged chief executive Dave Forsey and finance director Bob Mellors cashed out their bonus scheme options. The shares edged back on Friday but yesterday the stock bore the brunt of investors’ change of heart and it was the worst faller on the FTSE 100.

Michael Hewson, senior market analyst at spreadbetter CMC Markets, said: “The biggest fallers have been in the retail sector led by FTSE new boy Sports Direct which continued its sell-off from Friday after the £6.4m share sales of the chief executive and finance director.”

The share sell-off left the directors with just 50,000 shares. Sports Direct International – run by Mike Ashley - tumbled 30.5p, or 4.33 per cent, to 674.5p.

Sports Direct wasn’t the only retailer out of favour at the start of the week.

High street bellwether Marks and Spencer collapsed after a note from Credit Suisse, which reduced sales and profit estimates. They argued that signs that fashion sales declined in September would mean a weak second-quarter sales update next month. M&S lost 13.7p to 480.3p but the shares are still more than 26 per cent better since the start of the year.

Luxury brands exposed to China were weaker across Europe yesterday on poor Chinese forecasts over the weekend and comments from Burberry chief Angela Ahrendts, who reiterated her warning that the luxury slowdown in China could be more than a blip. Burberry stumbled down 20p – 1.22 per cent – to 1,608p while Louis Vuitton owner LVMH was down 1 per cent and Swiss watches group Richemont was 0.86 per cent worse off.

The wider market was still suffering from the fear factor emanating from the US shutdown and debt-ceiling worries. The World Bank lowered this year’s and next year’s economic growth forecasts for China which also weighed on investors’ minds.  The FTSE 100 index was knocked back 16.6 points to 6437.28.

The outlook for China also hit the miners who are reliant on the global powerhouse but Mexican digger Fresnillo bucked the trend after a buy note from UBS. It was close to the top of the blue-chip index, up 18p to 931.5p.

For some City analysts there is only one match worth watching – and that’s between BSkyB and BT.  Scoring the rights  to broadcast the Champions League is “critical”, Nomura’s analysts claimed — and at any price. They explained that if Sky retains the rights, “even at a high cost”, it will signal a “robust defence of its business model”.

If BT is victorious, Nomura warned investors will “assume it intends to be even more aggressive on the Premier League next time around”, which could signal a “seminal change in market dynamics”.  Sky’s shares are close to a 10-year high but Nomura still rated it a buy with a 975p target, although the shares declined 0.5p to 877.5. BT lost 3.9p to 347p.

On the mid-tier table, high costs and only a small rise in sales caused pork producer Cranswick to fall 50p to 1096p. It warned that rising pig prices are hitting margins and it now expects flat full-year profits. Petra Diamonds beat forecasts and reported first-quarter production up by 816,735 carats, and said it is on track for the full year. It was close to the top of the mid-tier table, up 2.9p to 119.3p.

On AIM, explorer Northern Petroleum’s finance director Nick Morgan and exploration and technical director Graham Heard bought shares at 33.75p and 33.5p, taking their stakes to 0.08 per cent and 0.65 per cent res- pectively. The shares jetted up 1.5p to 31.75p.

Home automation technology specialist JSJS Designs signed a deal to make Megaman UK, a subsidiary of Neolight Hong Kong, its sole distributor for the UK. The group, which distributes products that control home devices via smartphones such as dimmer lights and security sensors, was 0.07p brighter at 0.285p.

Sable Mining Africa has got a Guinea export licence for its Nimba iron ore project. It will transport ore across the border to Liberia and to the port of Buchanan. Sable jumped 0.74p to 10.25p.

US-focused Northcote Energy said its third Oklahoma fracking programme  will start this week, as it gushed 0.05p  to 1.3p.

Buy: PETROCELTIC INTERNATIONAL

Snap up shares in Petroceltic, Liberum Capital suggests. The broker thinks the oil group’s sale of a stake in its Ain Tsila licence in Algeria undervalues the asset. But even at this “disappointing” price, Liberum thinks it justifies buying the stock. The deal marks “definitive progress” for the group because it has “monetised some of the value in the project ahead of market expectations”. It rates it a buy with a 171p price target for shares that are 147p.

Sell: LAND SECURITIES

Flog shares in Land Securities, Galvan Research insists. The broker thinks any property boom is already accounted for in the share price. London property has continued to improve but Galvan thinks Land Securities’ “fundamentals may have already factored in the best of the boom”. The shares are 914.5p and Galvan says sell until it reaches 850p.

Hold: TATE & LYLE

Hang on to Tate & Lyle, Shore Capital suggests. The broker notes that the sweetener business’ recent trading update turned out to contain more negative drivers than positive ones. Tate downgraded its outlook and Shore rates it a hold with a 734p price target for shares that are 740.5p.

News
news

Emergency call 'started off dumb, but got pretty serious'

News
people

Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'

Arts and Entertainment
JK Rowling is releasing a new Harry Potter story about Dolores Umbridge
arts + entsJK Rowling to publish new story set in wizard's world for Halloween
News
Russell Brand was in typically combative form during his promotional interview with Newsnight's Evan Davis
people

Thought you'd seen it all after the Jeremy Paxman interview?

PROMOTED VIDEO
Arts and Entertainment
On The Apprentice, “serious” left the room many moons ago and yet still we watch
tv

Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent

Life and Style
tech

Voices
Funds raised from the sale of poppies help the members of the armed forces with financial difficulties
voicesLindsey German: The best way of protecting soldiers is to stop sending them into conflicts
Arts and Entertainment
A scene from David Ayer's 'Fury'
film

"History is violent," says the US Army tank commander Don "Wardaddy" Collier

News
The Edge and his wife, Morleigh Steinberg, at the Academy Awards in 2014
peopleGuitarist faces protests over plan to build mansions in Malibu
Sport
Luis Suarez and Lionel Messi during Barcelona training in August
football

Striker's four-month ban for biting an opponent expires on Friday

News
news
News
ebooksAn unforgettable anthology of contemporary reportage
News
peopleFox presenter gives her less than favourable view of women in politics
News
George Clooney and Amal Alamuddin married in Venice yesterday
peopleAmal and George Clooney 'planning third celebration in England'
Property
One bedroom terraced house for sale, Richmond Avenue, Islington, London N1. On with Winkworths for £275,000.
property
Sport
Erik Lamela celebrates his goal
football

Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here

News
i100
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

Data Analyst/Planning and Performance – Surrey – Up to £35k

£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...

IT Systems Business Analyst - Watford - £28k + bonus + benefits

£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...

Markit EDM (CADIS) Developer

£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...

CTO / Chief Technology Officer

£100 - 125k: Guru Careers: A CTO / Chief Technology Officer is needed to join ...

Day In a Page

Wilko Johnson, now the bad news: musician splits with manager after police investigate assault claims

Wilko Johnson, now the bad news

Former Dr Feelgood splits with manager after police investigate assault claims
Mark Udall: The Democrat Senator with a fight on his hands ahead of the US midterm elections

Mark Udall: The Democrat Senator with a fight on his hands

The Senator for Colorado is for gay rights, for abortion rights – and in the Republicans’ sights as they threaten to take control of the Senate next month
New discoveries show more contact between far-flung prehistoric humans than had been thought

New discoveries show more contact between far-flung prehistoric humans than had been thought

Evidence found of contact between Easter Islanders and South America
Cerys Matthews reveals how her uncle taped 150 interviews for a biography of Dylan Thomas

Cerys Matthews on Dylan Thomas

The singer reveals how her uncle taped 150 interviews for a biography of the famous Welsh poet
DIY is not fun and we've finally realised this as a nation

Homebase closures: 'DIY is not fun'

Homebase has announced the closure of one in four of its stores. Nick Harding, who never did know his awl from his elbow, is glad to see the back of DIY
The Battle of the Five Armies: Air New Zealand releases new Hobbit-inspired in-flight video

Air New Zealand's wizard in-flight video

The airline has released a new Hobbit-inspired clip dubbed "The most epic safety video ever made"
Pumpkin spice is the flavour of the month - but can you stomach the sweetness?

Pumpkin spice is the flavour of the month

The combination of cinnamon, clove, nutmeg (and no actual pumpkin), now flavours everything from lattes to cream cheese in the US
11 best sonic skincare brushes

11 best sonic skincare brushes

Forget the flannel - take skincare to the next level by using your favourite cleanser with a sonic facial brush
Paul Scholes column: I'm not worried about Manchester United's defence - Chelsea test can be the making of Phil Jones and Marcos Rojo

Paul Scholes column

I'm not worried about Manchester United's defence - Chelsea test can be the making of Jones and Rojo
Frank Warren: Boxing has its problems but in all my time I've never seen a crooked fight

Frank Warren: Boxing has its problems but in all my time I've never seen a crooked fight

While other sports are stalked by corruption, we are an easy target for the critics
Jamie Roberts exclusive interview: 'I'm a man of my word – I'll stay in Paris'

Jamie Roberts: 'I'm a man of my word – I'll stay in Paris'

Wales centre says he’s not coming home but is looking to establish himself at Racing Métro
How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?

A crime that reveals London's dark heart

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?
Meet 'Porridge' and 'Vampire': Chinese state TV is offering advice for citizens picking a Western moniker

Lost in translation: Western monikers

Chinese state TV is offering advice for citizens picking a Western moniker. Simon Usborne, who met a 'Porridge' and a 'Vampire' while in China, can see the problem
Handy hacks that make life easier: New book reveals how to rid your inbox of spam, protect your passwords and amplify your iPhone

Handy hacks that make life easier

New book reveals how to rid your email inbox of spam, protect your passwords and amplify your iPhone with a loo-roll
KidZania lets children try their hands at being a firefighter, doctor or factory worker for the day

KidZania: It's a small world

The new 'educational entertainment experience' in London's Shepherd's Bush will allow children to try out the jobs that are usually undertaken by adults, including firefighter, doctor or factory worker