Market Report: Superdry is back in fashion with traders

 

Take a cursory glance around any high street and you'd be forgiven for thinking that the clothing brand Superdry had reached saturation point. But SuperGroup, which owns the brand, was back in fashion yesterday, as traders reacted positively to its new autumn/winter ranges.

Canccord's Wayne Brown said the diverse uses of the brands logo meant it could appeal to a wider audience than competitors and noted that: "The women's range is now looking significantly more advanced."

Mid-cap listed SuperGroup has suffered a series of setbacks in the past 18 months, including three profit warnings and stock issues that left its shares not just 80 per cent below its 2011 peak, but even below its 500p-a-share float price. However, analysts are getting optimistic again. In December the group reported a 3.9 per cent rise in like-for-like sales during the six months to October and City scribblers hope the group's third-quarter update on 7 February will show strong growth internationally. SuperGroup added 34p to 580p.

After starting the week with a roar, the top-flight index ended it with a murmur. US influences dominated, with two big sellers of futures contracts on Wall Street's benchmark S&P 500 index spooking investors on Friday morning, according to London market watchers. The FTSE 100 was flat for most of the day, before getting a midday boost from Wells Fargo, which kicked off the bank-reporting season in the US with a 24 per cent jump in earnings. The UK's blue-chip index ended up 20.07 points at 6121.58, the first time it has closed above the 6,100 mark since May 2008.

The biggest riser was British Airways and Iberia owner International Consolidated Airlines Group (IAG). UBS rated the stock a buy as it reckons the group's Iberia restructuring will reap rewards and predicts IAG will outperform in 2013. IAG added 10.7p to 206.62p.

Aviva's restructuring is also paying off, as Citibank joined Investec in rating the insurer a buy. Citi's Paul Bradley said: "Although Aviva has enjoyed a good run recently, it remains cheap relative to peers. The progress made on its restructuring plan gives confidence that the management can close the valuation gap." Aviva gained 12.1p to 378.88p.

Elsewhere on the blue-chip index, commodity companies were lacking in popularity. Rio Tinto, BHP Billiton and Anglo American were all among the day's biggest fallers, as Chinese inflation figures and news that cyclone Narelle could hit the key mining regions of Western Australia this weekend left investors wary of the sector.

But yesterday's worst performer among the top flight was Tullow Oil, which announced write-offs of $670m (£415m) for the second half of 2012, due to dry holes and licence relinquishments off the African coast. Tullow dropped 39p to 1169.08p.

Commodities' unpopularity was not shared on the mid-cap index, where the gold miner Centamin was top of the table. Egypt's petroleum minister, Osama Kamal, sent shares soaring after he lent his support to the company in a TV interview. Centamin has faced a series of problems with government agencies in the country since October, with courts questioning its right to produce at its Sukari mine, customs officials holding up exports and even the petroleum ministry disrupting fuel supplies. Its shares closed 4.6p up at 55.8p.

Meanwhile, the bus and rail operator FirstGroup had a dismal end to the week – the Brown report into the West Coast Railway fiasco this week contained damning criticism of the Government's decision to award FirstGroup the franchise and called for a serious overhaul of the system. UBS downgraded FirstGroup from neutral to sell and the company's shares fell 4.8p to 195.1p.

Despite MoneySupermarket.com admitting the Bank of England's Funding for Lending scheme meant "lower demand for comparison of savings products" yesterday, more switchers clicking on its insurance and travel links mean the comparison site reckons it will see revenues rise by 15 per cent to £204.5m in 2012. Canaccord Genuity's analyst Simon Davies said the company was "recession-resilient" and raised his target price to 200p from 147p. It put on 9.7p to 167.9p.

Buy

JD Wetherspoon

Fill your boots with Wetherspoon shares, Panmure Gordon urges. The broker says it is expecting the bargain pub landlord — due to issue an update on Wednesday — "to report continued market leading performance with a fairly strong Christmas and New Year". Shares presently are at 515.5p but Panmure gives a target of 615p, saying the "momentum is firmly with Wetherspoon".

Hold

Dixons Retail

Keep your shares in Dixons Retail, is the advice from Espirito Santo. The electronics chain is releasing a trading statement next Thursday, and the broker's analyst Caroline Gulliver is expecting like-for-like sales for its third-quarter to have jumped 6 per cent. Yet, despite saying that she believes the company is heading for "significant growth ... over the next two years and see risks to the upside", Ms Gulliver keeps her "neutral" recommendation and 30p price target, with shares currently at 27.74p.

Sell

J Sainsbury

Seymour Pierce has downgraded Sainsbury's from Hold to Reduce. It says the supermarket chain's third-quarter numbers last Wednesday "were not as strong as hoped" and it feels the business "will struggle to outperform this year". Shares are 324p; Seymour gives a target price of 310p.

Suggested Topics
News
Jacqueline Bisset has claimed that young women today are obsessed with being 'hot', rather than 'charming', 'romantic' or 'beautiful'
people
Arts and Entertainment
Lena Dunham
booksLena Dunham's memoirs - written at the age of 28 - are honest to the point of making you squirm
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvDownton Abbey review: It's six months since we last caught up with the Crawley clan
Sport
Frank Lampard and his non-celebration
premier leagueManchester City vs Chelsea match report from the Etihad Stadium
PROMOTED VIDEO
News
people
Life and Style
A new app has been launched that enables people to have a cuddle from a stranger
techNew app offers 'PG alternative' to dating services like Tinder
Sport
Greg Dyke insists he will not resign as Football Association chairman after receiving a watch worth more than £16,000 but has called for an end to the culture of gifts being given to football officials
football
Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
Sport
premier league
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave crime series
Sport
Mario Balotelli celebrates his first Liverpool goal
premier leagueLiverpool striker expressed his opinion about the 5-3 thriller with Leicester - then this happened
News
ebooksAn unforgettable anthology of contemporary reportage
News
Britain's shadow chancellor Ed Balls (L) challenges reporter Rob Merrick for the ball during the Labour Party versus the media soccer match,
peopleReporter left bleeding after tackle from shadow Chancellor in annual political football match
Arts and Entertainment
Female fans want more explicit male sex in Game of Thrones, George R R Martin says
tvSpoiler warning: Star of George RR Martin's hit series says viewers have 'not seen the last' of him/her
News
i100
News
i100
Sport
Plenty to ponder: Amir Khan has had repeated problems with US immigration because of his Muslim faith and now American television may shun him
boxing
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

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
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