Wall Street rally propels FTSE, Hammerson’s case for the defence, Sophos bounces back and bleak outlook for Rank

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“The FTSE 100 bounces back strongly on Thursday, taking its cue from a strong finish to a volatile trading session on Wall Street last night,” says AJ Bell investment director Russ Mould.

Hammerson

“Today’s trading update from shopping mall landlord Hammerson reads like a defence against continuing takeover interest from French rival Klepierre.

“Management have already rejected a £4.9bn bid from the company and Klepierre now has until 16 April to put up or shut up. Ahead of this deadline Hammerson has put work on its planned merger with Intu Properties on hold.

“Trading in the first three months of the year helped back up chief executive David Atkins’ claim that ‘not all retail is equal’. New leases were up 59% year-on-year in the first three months of 2018 and with disposals of £92m, the company says it is on track to achieve its annual target of £500m.

“And while Easter was a washout for the high street, Hammerson saw its own footfall up 5% over the Bank Holiday weekend.”

Sophos

“Security software and hardware group Sophos failed to meet high expectations when it issued a third quarter trading update in February.

“It was one of those situations where 19% billings growth was deemed an inferior result, a level at which many companies in the world could only ever dream of achieving.

“Today it manages to get back in the market’s good books with news of 23% billings growth in its fourth quarter period, sending it share price shooting up.

“Investors are in a strange mood at present, demanding superior results otherwise the share price gets marked down. Simply meeting expectations may not be enough, and even a slight miss results in severe punishment by the market.”

Rank

“Gaming group Rank has issued a profit warning one month after chief executive Henry Birch handed in his notice. While the timing may purely be a coincidence, with Birch leaving to run retailer Shop Direct, you cannot help wondering if he jumped before the ship sank.

“Rank has today reported a 2% decline in like-for-like revenue for the 13 weeks to 1 April, blaming the weather and ‘negative contribution’ from its VIP players.

“The outlook for its gambling venues is bleak with the board citing caution over the UK consumer outlook.

“Last year the company said earnings had been hit by tighter controls on money laundering and problem gambling at casinos as well as weakness in its bingo business.”

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