Market Report: Asos unveils plan to move mainstay of online fashion giant London Stock Exchange
Online fashion giant Asos has soared after unveiling plans to move to the main market on the London Stock Exchange.
Shares of the firm jumped 11.3 per cent or 255p to 2514p, after 20 years at its junior counterpart, Aim, which is aiming to join the main market by the end of next month.
After a profit warning in October and a six-year stepping-in after the departure of chief executive Nick Beaton, the group is looking to attract more investors after a tough year in which its share price fell more than 50 per cent.
Asos shares jumped 11.3%, or 255p, to 2514p, after 20 years on its junior counterpart AIM, which is aiming to join the main market by the end of next month.
The announcement was included in a four-month trading update until the end of December, which saw the company’s sales rise 5 per cent year-on-year to £ 1.39 billion despite supply chain issues and ‘volatile’ demand from the Omicron transformation. .
Despite share price rises, analysts at broker Liberum cut their target price for Asos from 3560p to 2300p, saying the firm has ‘significant work’ to do this year.
The FTSE 100 gained 0.2 per cent or 12.13 points to 7563.85, while the FTSE 250 dipped 0.4 per cent or 88.68 points to 22,958.48.
Stock Watch – Card Factory
Shares in the card factory fell after a greeting card retailer warned that its profit margins would be hit by inflation with ‘significant’ pressure.
It now expects profit to be lower than expected in its next financial year. It would raise prices to reduce the damage.
The gloomy forecast covered better than expected trading in the 11 months to the end of December, which updated its current year forecasts.
Shares fell 15.8 per cent, or 10p, to 53.5p.
Market sentiment rocked after US inflation reached a 40-year high on Wednesday, reviving fears that price rises could threaten global economic recovery.
Inflation weighed on major UK retailers and supermarkets, with Tesco down 0.9 per cent or 2.55p, to 289.7p, and Marks & Spencer 8 per cent or 20p, down 233p despite upbeat business updates.
Oilfield engineer Wood Group climbed to a five-month high after unveiling plans to sell part of its consulting business.
Shares rose 20.5 per cent or 40.8p to 240p after the FTSE 250 group lifted the ‘For Sale’ sign on its Built Environment segment, which helps governments and private companies assess environmental risks for buildings and infrastructure. It is expected to be worth around £ 2bn.
Blue-chip housebuilder Taylor Wimpey fell 1.6 per cent, or 2.45p, to 159.35p, while its largest shareholders reduced its stake.
Los Angeles-based Capital Group, one of the world’s largest investment managers, dumped nearly 20.4 million shares in the firm on Tuesday, reducing its stake from just 5 percent to 4.5 percent.
Recruiters Hays added 2.3 per cent or 3.4p to 155.3p after posting record performance in the three months to the end of December.
The group reported that its main source of revenue, net fees, rose 37 percent.
Cycling and motoring retailer Halfords rose 0.6 per cent, or 2p, to 364p, followed by a boom in demand for MOTs, which helped boost revenues in the three months to the end of December.
Revenue for the period increased by 10.4 percent compared to pre-epidemic levels.
Pharma giant AstraZeneca has reported data showing its Vaccavria Covid-19 vaccine is effective as a booster against Omicron.
The FTSE100 highlighted the results of an ongoing clinical trial that showed that when given as a third dose, its jab would enhance the immune system’s response to earlier mutations in the omicron and virus. Shares fell 0.4 per cent or 30p to 8449p.
Meanwhile, Buckavour, which supplies canned food to supermarkets and retailers, fell 2.4 per cent, or 3p, to 123p because it flagged ‘unprecedented’ challenges in 2021 as it faced supply chain disruption, labor shortages and inflation.
Despite this, revenues increased 4.4 per cent year-on-year for the year to December 25, though warnings that the problems facing the business were ‘aggravated’ in the final quarter of the year and continued this year.