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FTSE boosted by Greek deal, while M&S falls and Dixons Carphone climbs

Discussion in 'Market News' started by Lily, May 25, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Investors push markets higher again but mixed performances from retailers

    Helped by the late night deal over Greece and better than expected US housing figures on Tuesday, stock markets are moving higher again.

    Banks are among the main risers, as investors bet they will benefit if the Federal Reserve sanctions an interest rate hike in June or July. Royal Bank of Scotland, which raised £85m in a share offering, is up 7.8p to 253.1p, HSBC is 10.15p higher at 444.4p while Barclays is 2.9p better at 184.3p.

    It was a broad-based rally as stockmarkets rode the wave of improving economic conditions in the US, dampening Brexit fears, and a “major breakthrough” on Greece, which secured bailout loans from the Eurogroup and the IMF to avert an uncertain default.

    A strong finish to the year sets Dixons Carphone up well heading into 2017. UK performance is becoming more balanced between mobile and electricals, and the Nordics like for like growth is likely to be ahead of the market, with a more stable gross margin outlook likely in our view. No further updates are given on CWS [its Connected World Services division] at this stage, but we would expect more colour on the business and its opportunities at June’s prelims. Valuation (12.5 times 2017 PE) and 5% sector discount are not reflective of core business growth and longer-term potential.

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