It has been a volatile week for easyJet, the budget airline. A
downgrade from analysts and a sharp fall was followed by a minor recovery,
after strong passenger numbers for the month noted a 92% load factor – the
measure of aircraft capacity utilisation.
Takeover excitement boosted Mothercare - American company
Destination Maternity has had two approaches rejected by the British company
and some analysts believe the news could draw out other potential bidders.
Saga missed out on the wider market rally after receiving a
lukewarm reception from analysts at some of the banks that floated the company.
The initial public offering of the over-50s insurer and travel group is widely
regarded as a high-profile flop. Sold to investors at 185p, shares in the
company disappointed on their first day of trading and then fell below the
flotation price. The main sticking point for many investors at the time of the
float was that Saga was being valued as a leisure stock, and not an insurance
one. The company has a strong consumer brand, but it is insurance that faces
the most scrutiny with the vast majority of its earnings coming from financial
services.
Sports Direct, was one on the big risers last week on news that
shareholders had backed the retailer’s third attempt to hand founder Mike
Ashley a £200m bonus. Analysts think that resolution of this issue removes a
degree of uncertainty around the business and the company can now re-focus on
the longer-term growth story.
Strong first-quarter numbers from
Poundland, which has a number of
stores in Sussex, sent shares in the recently-floated retailer upwards.
The encouraging American jobs
data inevitably boosted markets on the other side of the Atlantic, with the Dow
Jones Industrial Average breaking through the 17,000 level for the first time.
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