Market Report: Investors bulk up on shares in The Gym Group

Market Report

The Gym Group has opened 19 new gyms to take its total to 74

New Year resolutions are rubbing off on investors who have been bulking up on shares in The Gym Group since the start of 2016. Shares in the chain, whose gyms are open round the clock, hadn’t set pulses racing since the November float. But since last Monday they have sprinted ahead 18 per cent, rising 9.25p to 239.25p on Tuesday after the company’s first trading statement since listing at 195p a share.

The Gym Group said its annual results are expected to be in line with expectations as it ended 2015 with 376,000 members, up 28 per cent on the year before, having opened 19 new gyms to take its total to 74.

Broker Numis, which lifted its target price to 265p, predicts the company will treble its profits over the next four years.

The FTSE 100 ended its four-day losing streak to climb 57.41 points to 5,929.24, with a better showing from retailers offsetting more woe for miners and oil firms.

Tesco was the biggest blue-chip riser, up 9.75p at 155.2p on the back of Morrisons’ return to underlying sales growth.

Broker Jefferies boosted the housebuilders with upgrades to buy for Berkeley Group, up 134p to 3,672p, Barratt Developments, 15p richer at 609.5p, and Galliford Try, 63p better off at 1,527p. A shortage of housing was among the reasons.

HSBC and Barclays combined to knock miner BHP Billiton down 18.2p to 617.9p, with both brokers predicting the dividend will be cut in half to cope with cheaper metals prices.

Just Eat dropped 19p to 457.3p after the online takeaway firm’s full-year update suggested underlying order growth slipped in the final few months of the year.

Premier Oil crashed 9.5p to 19p as Jefferies cut its rating to hold and suggested avoiding the stock – now at record lows – because of its high debt pile.

On AIM, buyers chased the beleaguered electronic invoicing specialist Tungsten Corp 10p higher to 62p, while KBC Advanced Technologies soared 59.75p or 48 per cent to 183.75p after the energy software company agreed to a £158m takeover by America’s Aspen Technology.