Market Report: Tubthumping boost for Standard Chartered

The lyrics of Chumbawamba are not usually discussed in the City, but for one analyst the band – whose guitarist famously poured a bucket of water over John Prescott at the 1998 Brit Awards – provided a rather unusual source of inspiration yesterday.

In a note entitled "I get knocked down, but I get up again" – a line from the group's best-known tune, "Tubthumping" – Exane BNP Paribas' Ian Gordon praised Standard Chartered by giving it a double upgrade from "underperform" to "outperform" and describing it as "probably the best bank in the world".

Although Mr Gordon said he has considered it "an outstanding, well managed bank" for a long time, he defended his previously bearish stance by pointing out he is "always careful not to confuse operational excellence with the attractiveness (or otherwise) of an investment opportunity".

However, its recent share price fall means things have changed, he said, noting that a trading update in December which "represented a small miss against frothy market expectations" plus "increasing (and, we believe, exaggerated) investor concerns over the potential impact of rising Asian inflation... has conspired to create the attractive re-entry opportunity that we now see".

Investors were clearly sold on Mr Gordon's argument – if not his taste in music – with Standard Chartered outperforming its sector rivals on the top-tier index by moving up 45p to 1,674p.

Overall, the FTSE 100 managed to halt its recent slide and add 94.88 points to close at 5,957.82. There was positive manufacturing data from across the globe, including the UK, with strong Chinese figures helping the miners. Copper stood out among the commodities by reaching a new high, leaving Kazakhmys – up 72p to 1,578p – and Antofagasta – up 66p to 1,472p – in particularly good shape.

With hundreds of thousands of Egyptians taking part in the largest rally yet against President Hosni Mubarak, the ongoing political uncertainty meant the tour operators were still falling and Tui Travel and Thomas Cook dropped 1.5p to 251.5p and 2.7p to 187.9p respectively. However, the gold miner Centamin Egypt continued its recovery, advancing 10.6p to 147p, after it said its operations in the country were going ahead as normal. Meanwhile, IAG, the airline group that owns BA and Iberia, managed to regain some of Monday's losses, rising 3.8p to 260.2p, as did Hikma Pharmaceuticals (which has a high exposure to the region) with a climb of 30.5p to 834.5p.

BP was one of a number of major companies releasing updates yesterday and as expected it announced the resumption of dividends, albeit well below the level before the Gulf of Mexico disaster.

The oil giant also revealed its first annual loss for nearly 20 years, prompting it to drop in early trading before it rallied to close 6.15p higher at 491p.

Autonomy was near the top following its final results. Advancing 94p to 1,590p, the software company said that its revenue had beaten expectations while announcing that a planned acquisition of an unnamed group had hit a delay. The Cambridge-based chip maker Arm Holdings also surpassed market forecasts with its full-year numbers, and rose 31.5p to 547.5p.

BAE Systems retreated 8.4p to 333.6p following the re-emergence of well-worn speculation that the defence giant could be interested in attempting to buy the US security company SRA International.

There was no shortage of buyers of Ocado on the FTSE 250, as it reached a new high with a surge of 29.7p to 247.7p after its final results. The online grocer revealed that in the fourth-quarter it had banked a profit for the first time, while also announcing plans to increase the range of products it sells.

With voices on the trading floor citing a squeeze of short positions as one driver behind its huge move, not everyone was positive. Shore Capital kept its "sell" advice, saying that it remains "to be convinced that there is a compelling business model that merits a materially premium stock rating to the market". The broker also dampened the re-emergence last week of gossip regarding a possible takeover attempt of the company, saying that if true "we would have expected Ocado and the UK regulator to have made a comment before now."

Tate & Lyle, meanwhile, was knocked back 9.5p to 542p following an update in which it said trading was on track to meet expectations, as Panmure Gordon said it was sceptical about recent chatter that the group could be about to receive a bid approach from Cargill.

Elsewhere a profit warning from Carpetright led it to dip 22p to 707.5p, with the retailer warning that an increase in the cost of raw materials would result in significant price hikes for customers.

On the Alternative Investment Market, African Aura rocketed 21.75p to 189p after the miner revealed a maiden resource of 1.04 billion tonnes of iron ore at its Nkout project in Cameroon. The company has an overall target for the project of 4 billion tonnes.

ebooksAn unforgettable anthology of contemporary reportage
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
Oscar Pistorius is led out of court in Pretoria. Pistorius received a five-year prison sentence for culpable homicide by judge Thokozile Masipais for the killing of his girlfriend Reeva Steenkamp
voicesThokozile Masipa simply had no choice but to jail the athlete
Arts and Entertainment
James Blunt's debut album Back to Bedlam shot him to fame in 2004

Singer says the track was 'force-fed down people's throats'

Life and Style
The Tinder app has around 10 million users worldwide

techThe original free dating app will remain the same, developers say

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Helpdesk Analyst

£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...

Senior Helpdesk Analyst / Service Desk Co-ordinator

£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...

Senior Pensions Administrator

£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...

Corporate Actions Administrator / Operations Administrator

£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...

Day In a Page

Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Let's talk about loss

We need to talk about loss

Secrecy and silence surround stillbirth
Will there be an all-female mission to Mars?

Will there be an all-female mission to Mars?

Women may be better suited to space travel than men are
Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

How to dress with authority

Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

New book on Ian Curtis sheds fresh light on the life of the late singer

'Joy Division were making art... Ian was for real' says author Jon Savage
Sean Harris: A rare interview with British acting's secret weapon

Sean Harris: A rare interview with British acting's secret weapon

The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

Tim Minchin interview

For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
Boris Johnson's boozing won't win the puritan vote

Boris's boozing won't win the puritan vote

Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

Tim Wheeler: Alzheimer's, memories and my dad

Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album