MARKET REPORT: Sports Direct gets set for Premier League kick-off and replica football kit sales to take off

By Geoff Foster for MailOnline

Updated: 04:18 EDT, 13 August 2014

The 2014-15 Premier League season kicks off on Saturday and sales of replica football kits should be booming.

For football fanatics in the UK wanting to buy a replica shirt of their beloved team then Sports Direct International, 2.5p better at 682.5p, is the only place to go as it has over 600 sports stores in Europe, including 400 in the UK.

Arsenal fans, for example, are currently able to pick up a long-sleeved home shirt priced at a bargain £47.99, cheaper than rival retailers.

Sales: The 2014-15 Premier League season kicks off on Saturday and sales of replica football kits should be booming

Buyers got stuck in yesterday, ignoring adverse comment that billionaire owner Mike Ashley is the biggest employer to use the soon-to-be illegal ‘zero hour’ contracts that potentially stop the 20,000 part-time staff getting a second job.

Around 90 per cent of the company’s employees are employed on the controversial contracts, meaning they work unpredictable hours, with no sick pay, holiday pay, or entitlement to a bonus.

Ashley recently bowed to pressure from the City and withdrew his controversial participation in the firm’s new 2015 bonus scheme, despite winning approval from shareholders.

Investors voted for a bonus plan that will give £200million worth of shares to 3,000 permanent staff, including Ashley, if earnings double by 2019.

Billionaire owner Mike Ashley: The boss is the biggest employer to use the soon-to-be illegal zero hour contracts

Ashley’s withdrawal means his staff will now be entitled to a bigger share of the windfall from the 25million shares.

Sports Direct has plans to launch in Australia and New Zealand and is regarded as a buy by a large percentage of analysts covering the stock.

Broker Numis Securities has a target price of 850p.

Elsewhere, trading conditions remained thin as holiday considerations took their toll. Fund managers were also in no mood to commit fresh funds amid continuing unrest in the Ukraine and ahead of today’s double whammy of event risk for the UK.

Employment data for June and July will be released this morning as will the Bank of England’s Inflation Report which could give dealers a better idea as to when UK interest rates will rise.

The Footsie closed a fraction easier at 6,632.42.

Wall Street traded 9.44 points off at 16,560.54.

The latest Bank of America/Merrill Lynch fund manager survey reveals that rising geo-political temperatures combined with the threat of rising US interest rates have led global investors to scale back risk and take cash levels to two-year highs.

Some 27 per cent of respondents are overweight cash in August, up from 12 per cent in July.
Boosted by a continuing strong performance of its Primark discount clothes business, Associated British Foods added 54p at 2769p.

Insurer RSA, now headed by former RBS boss Stephen Hester, rose 3.9p to 429.5p after Credit Suisse upgraded to neutral from underperform.

Financial services giant Hargreaves Lansdown shed 31p to 1050p on a UBS sell recommendation.

The broker estimates the company’s flagship Vantage platform has to draw in 25 per cent net flows each year over a three year time horizon and this looks challenging given it achieved 20 per cent flows in 2013 when the shares doubled as the regulatory boost from the retail distribution review came into play.

Strong first-half results helped Al Noor Hospitals, the United Arab Emirates healthcare firm, enjoy a healthy gain of 34p to 1025p.

Net profit rose to £26.5million on revenue up 25 per cent to £134million. The group added 31 physicians during the first six months of the year which enabled it to treat more patients who did not need an overnight stay in hospital.

Outpatient volumes rose 20 per cent from the previous year.

Sold down to 58p, Asia Resources Minerals rallied late to finish 0.25p dearer at 65.75p. Early weakness followed news that subsidiary PT Berau Coal had postponed a placing due to adverse market conditions.

Use of proceeds of proposed notes was intended for redemption in full of $450million outstanding 12.5 per cent guaranteed senior secured notes due July 8, 2015.

Cloudbuy jumped 5.5p or 17.46 per cent to 37p after securing a contract with an Australian state government to build an e-marketplace which could be worth A$2.2million over time.

The first six months of the contract is expected to implement an electronic procurement marketplace for the Treasury department and all IT purchasing.

Kitchen and bathroom supplier John Lewis of Hungerford sank 4.84 per cent to 1.48p after announcing a change of name to Grove (Oxfordshire) and splitting its manufacturing, retail and installation businesses.

It also plans a new installation arm branded Artisan Installation Company Ltd.

North Sea-focused oil and gas firm Ithaca Energy eased 2.75p to 133.75p after swinging to a loss in the first-half of the year.