MARKET REPORT: Frasers Group again in vogue with City in increase to Ashley

Analysts gave Mike Ashley’s retail empire Frasers Group a boost by upgrading their rating on the stock.

RBC Capital Markets said the value fails to recognise the likely resilience of its core Sports Retail business as well as its property assets and its strategic stakes.

The analysts estimate that Frasers’ strategic investments are worth more than £900million, amounting to about 200p per share, with the biggest slice of this related to the group’s stake in German fashion firm Hugo Boss.

Upgrade: RBC Capital Markets says Fraser’s Group, controlled by retail tycoon Mike Ashley (pictured), has a strong core business and good assets

The RBC analysts value Frasers’ shares at 1050p each, a significant uplift on the current level.

FTSE 100 listed Frasers rose 1.7 per cent, or 13p, to 780p. Peer JD Sports found support in its wake, up 0.9 per cent, or 1.05p, to 124.65p.

With interest rate decisions due in both the UK and US this week as well, of course, as the result of the highly divisive US Presidential election, investors were surprisingly upbeat. 

The FTSE 100 index inched up 0.09 per cent, or 7.09 points, to 8184.24 but the FTSE 250 index edged down 0.1 per cent, or 18.45 points, to 20461.29.

NatWest topped the FTSE 100 leaders board, gaining 2.6 per cent, or 9.8p, to 385.1p, hitting an 11-year high as analysts at Peel Hunt hiked their price target for the lender to 450p from 410p following recent results.

Other banks also found gains, with Lloyds adding 0.7 per cent, or 0.4p, at 54.82p, and Barclays ahead 1.2 per cent, or 2.9p, at 243.5p.

The blue-chip advance was helped by a rebound in energy giants on the back of a stronger oil price after Opec+ announced that it would delay output hikes for another month. 

Stock Watch – Hidrigin

Sealing a licensing agreement and sales contract with an Irish renewable energy developer handed Clean Power Hydrogen a boost.

Under the agreement, Hidrigin will have the right to produce up to two gigawatts of Clean Power Hydrogen’s membrane-free electrolysers, exclusively for 20 years.

Hidrigin aims to integrate the electrolysers into its solar and wind farms. Clean Power Hydrogen shares rose 24.2 per cent, or 2p, to 10.25p.

Shell advanced 0.6 per cent, or 15p, at 2594p, and BP gained 1 per cent, or 3.8p, at 382p.

Anglo American lost 0.2 per cent, or 5.5p, to 2390.5p as the miner agreed to sell its 33.3 per cent minority interest in the Jellinbah East and Lake Vermont steel-making coal mines joint venture in Australia.

Telecoms giant BT Group was higher ahead of its third quarter results due later this week, rising 1.4 per cent, or 1.9p, to 142.15p.

But after strong gains following results last week,consumer goods giant Reckitt Benckiser fell 1 per cent, or 49p, to 4945p, knocked by a downgrade to market perform by analysts at US broker Bernstein. 

Smith & Nephew fell 0.4 per cent, or 3.8p, to 963p as analysts at Jefferies slashed their price target on the medical technology company’s shares after recent disappointing results.

On the second line, defence manufacturer Chemring lost early gains made on news of two contract wins by the defence manufacturer, one in Germany and one in the US. The shares closed down 0.8pc, or 3p, to 353p.

Among the small caps, financial advisory firm DSW Capital rose 18.2 per cent, or 10p, to 65p after buying DR Solicitors, a healthcare-focused law firm, for £6.1million.

Fuel Cell technology provider AFC Energy soared 31.6 per cent, or 2.56p, to 10.66p after it reported better-than-expected full-year trading, primarily driven by sales of hydrogen-fuelled power generators to Speedy Hire Services for customer leasing.