Indices in London climbed higher, clawing back some of the losses over the past two days – buoyed by a selection of miners and luxury goods retailers.
Glencore, Antofagasta, Evraz and Anglo American all saw gains over 5%, attributed to the now familiar dynamic of weaker commodity prices in local currency terms, stoking demand in other countries and therefore higher commodity prices.
Jimmy Choo surged (+13.9%) as investors reacted favourably to the company’s trading update, ahead of today’s AGM. Analysts at RBC appraised the shoemaker as outperforming its peers, due to tight execution and management. Its ability to penetrate Asia was also cited, as was its small store network enabling it to open 10-15 stores a year.
Poundland traded over 6% higher after Steinhoff confirmed it was sizing up a bid. This is now the third retailer the South African group has pursued, after fellow retailers Argos & Darty. Poundland’s shares leapt 24% yesterday before the possible offer was unveiled, some of which was triggered by private equity owner Warburg Pincus selling its 15% holding to an undisclosed buyer. The timing is apt since Poundland’s full-year results are expected tomorrow, with analyst expecting a 90% fall in profits.
At the close European indices were up with the FTSE 100 +0.73%, with the CAC 40 +1.00%, and the DAX 30 +0.92%.