Yesterday's Trading: Pub crawl good news for M&B
Most people would call it a pub crawl, but for analysts at Morgan Stanley a trip round 12 boozers with Mitchells & Butlers was apparently a 'field trip'.
Round up: All the action from yesterday's stock market
Either way, the day out visiting pubs in South East London with M&B's new broom Adam Fowle left them impressed by his confidence and that of his pub managers.
Fowle became chief executive earlier in May, taking over from Tim Clarke who left after the company clocked up huge losses from a disastrous hedge against interest rates.
The Morgan Stanley analysts gleaned from their excursion that the Harvester chain was seeing positive underlying sales while the Toby Carvery pubs had an excellent summer.
They think M&B's full-year s results could come in at the top end or even beat market expectations. The owner of All Bar One will update the market on trading on September 24.
Morgan Stanley hiked its price target to 340p from 280p and shares in M&B jumped 16.6p to 300½p.
The wider market took a breather after the previous session's punchy break through the 5,000 level. The FTSE 100 shed 16.62 points to close at 4,987.68 as investors locked in some gains.
David Jones chief market strategist at IG Index said: 'The broader market is still strong. It would not surprise me to see another push above 5,000 tomorrow or next week.'
Wall Street supported his theory, with the Dow Jones Industrial Average up 80.26 points at 9627.48 by the close.
It may come as a surprise given all the doom and gloom about the high street, but the retail sector has been one of the best places for investors to splash spare cash this year.
The FTSE All Share General Retailers Index has risen 57% since the start of the year compared with a 13pc increase in the FTSE 100.
But yesterday retailers dominated the fallers' list. Analyst Fraser Ramzan at Nomura said: 'It is one of the best-performing sectors year to date. Profit-taking is the primary driver.'
Carpetright shares tumbled 86½p to 861½p even after boss Lord Harris told shareholders he was 'cautiously optimistic' ahead of the important autumn months.
Argos-owner Home Retail was the biggest FTSE 100 loser, down 22.2p at 307p, despite a strong sales update. Next was 72p lower at 1673p while B&Q owner Kingfisher shed 8.6p to 207.2p and Burberry dropped 11p to close at 488½p.
On the second line Game Group plunged 13.3p to 173.9p ahead of its profits next week. Deutsche Bank downgraded its recommendation to hold from buy on valuation grounds.
Among the blue chip risers, hips and knee replacement firm Smith & Nephew climbed up 8½p to 559½p amid hopes of a pick-up in demand for its products.
Patients have been putting off operations in the recession but a survey of US orthopaedic surgeons, carried out by Deutsche Bank's US MedTech team, indicated there would be a recovery in the number of procedures being carried out in the next six to 12 months.
Centrica shares ticked up 3.7p to 741p.
Peter Atherton at Citigroup thinks the owner of British Gas struck a good price when it bought Venture Production last month and upgraded his rating to buy.
Thomas Cook extended its gains, climbing a further 11.3p to 256.3p, as the cloud of uncertainty regarding nearly half its shares was lifted.
Lenders to collapsed German retailer Arcandor successfully placed their 43.9pc holding in the UK group at 240p a share.
Fellow travel firm Tui Travel was also firm, up 10.7p to 267.3p. Collins Stewart took the opportunity to upgrade it price targets for both stocks to bring them in line with the rerating the airline sector has enjoyed. It upgraded Thomas Cook to hold from sell and its target price to 252p and it lifted Tui Travel's target to 277p.
Internet-based video company Forbidden Technologies climbed 6p to 25½p ahead of the start of an exhibition in Amsterdam today when the group is set to launch its latest software.
Vague bid speculation swirled round Chloride, up 6½p to 167.3p. The group, which supplies equipment that protects against power failure, last year fended off a bid approach from America's Emerson.
Director share buying gave a lift to shares in Ingenious Media Active Capital, up 9p to 41½p. Patrick McKenna, the entertainment finance guru who has advised the likes of Robbie Williams, snapped up 9.4m shares, taking his stake to 15.5%.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Mini Cooper SE: The British icon gets an all-electric makeover
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- How to invest for income and growth: SAINTS' James Dow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Blue Whale fund manager on the best of the Magnificent 7
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- CITY WHISPERS: Bill Ackman's cerulean eyes charm...
- FTSE 100 hits an all-time high - but remember the stock...
- TONY HETHERINGTON: Boss behind firms fined £340k for more...
- Cost-of-living crunch wipes shine off Thomas Sabo jewellery
- MIDAS SHARE TIPS UPDATE: Wind is turning in Octopus...
- As world lurches from crisis to crisis, experts share...
- 86-year-old Peter's woes with a faulty smart meter that...
- Britain's nascent battery industry receives shot in the...
- Shipping broker Clarksons on list of shame after...
- Where is Labour's 'white heat' revolution to revive...
- North Sea projects worth £21bn put at risk by Labour: Tax...
- JOHCM UK EQUITY INCOME FUND: Rate cuts... and a spending...
- Virgin Money's biggest independent investor...
- British businesses awash with 'accidental' bosses who...
- MIDAS SHARE TIPS: Why it soon won't be hip to give the...
- Hollywood silly money? I'd only have stuffed it under the...
- Helium and hydrogen company set to join stock market in...
- Ikea pushes back opening of its Oxford Street store to...