Thu, 5th Sep 2013
British high street retailer M&S recorded a massive rise in its share value on Thursday, thanks to a positive report from an HSBC analyst.
Marks and Spencer enjoyed the second biggest increase of all blue-chip firms, gaining 3.4 percent after Paul Rossington said that the company had the greatest sensitivity to any recovery in the spending patterns of British consumers. The vast majority (around 90 percent) of Marks and Spencer's revenues come from consumers on the high street and investors believe that spending will pick up soon as the economy and the British housing market post a recovery.
Another company that gained from a positive HSBC review was Persimmon. Several analysts increased their price target for the firm, rating it as "overweight" and saying that it is likely to increase cash returns for its shareholders. The banking sector also performed well, with Lloyds Banking Group seeing a small increase in value thanks to an upgrade from Morgan Stanley.
By the end of the day, the FTSE had posted some significant gains and was sitting at a three week high. The index is still yet to break the 6,535 mark, but it is possible that it could do so before the end of the week. Unfortunately, massive gains remain unlikely because of the continued tensions in Syria. The Chinese government has spoken out against the prospect of US military intervention and this has made the general mood of the market even more cautious.