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Market Wrap - Midday

FTSE 100 on comeback trail and Kors steps up with Jimmy Choo bid

25 July 2017 11:39

Luxury shoe retailer Jimmy Choo (CHOO) jumped 17.2% to 228.5p after agreeing an £896m all cash takeover by US retailer Michael Kors. The takeover is pitched at 230p per share, a 36.5% premium to the share price before Jimmy Choo put itself up for sale in April.

A slight pull-back in sterling and stronger commodity prices helped support a comeback for the FTSE 100 which was up 0.9% at 7,446.31. Mining firm Anglo American (AAL) rallied as it said Kumba Iron Ore, in which it holds a majority stake, reported headline earnings of ZAR4.6bn (£272.58m) for the six months to the end of June.

Fellow miner Rio Tinto (RIO) was also heading higher, up 2.2% at £33.99 despite news the Serious Fraud Office has launched a corruption probe into the company's activities in Guinea.

OVERSEAS MARKETS

Markets closed modestly lower in the US as investors held fire ahead of a decision on interest rates from the Federal Reserve and the first GDP estimate for the second quarter, both out later this week. In Asia markets were mixed with Japan's Nikkei 225 reversing early gains to close lower but stocks in Hong Kong trading slightly higher.

FTSE 100 RISERS AND FALLERS

Informa (INF) gained 5.9% to 715p on news it generated continued growth in revenue, profit and earnings in its seasonally stronger first half of the year. The group has continued to make steady operational and financial progress in the fourth year of its acceleration programme while also effectively integrating US-based Penton Information Services ahead of schedule.

New FTSE 100 constituent, warehouse investor SEGRO (SGRO) gained 4.2% to 526p as it announced a 5.4% increase in net asset value and 5% increase in its dividend for the first half.

FTSE 250 RISERS AND FALLERS

Takeaway business Domino's Pizza (DOM) fell 7% to 259.7p despite an increase in first half revenues and underlying pre-tax profits. The group continues to take market share but it is also aware that UK consumers are more cautious about the economic outlook.

High performance thermoplastic PEEK provider Victrex (VCT) perked up 4.4% to £19.87 on a positive third quarter trading update and confident outlook statement.

SMALL CAP RISERS AND FALLERS

Premium carbonated mixers marvel Fevertree Drinks (FEVR) gained 9.1% to £19.04 as strong first half results stoked another round of earnings upgrades.

CEO Tim Warrillow said the posh tonic water-to-ginger beer supplier 'achieved growth in all our regions' in the half and given this continued strong performance, expects full year profits will come in 'materially ahead' of expectations.

Floor coverings maker Victoria (VCP:AIM) weaved 10.5p higher to 497.5p as forecast-busting full year results, driven by a combination of strong organic growth and earnings enhancing acquisitions, triggered earnings upgrades.

LED lighting specialist Luceco (LUCE) was bid up 12p to 244.75p on a positive first half trading update flagging market share gains in the UK and a strong performance in the Americas and continental Europe.

Fantasy miniatures maker Games Workshop (GAW) marches 9% higher to £14.51 on the news profits for 2017/18 are likely to beat current market expectations given the strong momentum in the business.

Story provided by StockMarketWire.com

Related Company: AAL

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