After a poor start to the day, the FTSE 250 rebounded to 17,077.60, up 93.57 points (0.55%).
Investment management and information services provider Fidessa led the risers after it revealed it expects to announce a further special dividend when it publishes its full year results in February.
The group reported strong cash generation in the second half of the year, adding it had continued to see customer markets “entering a new phase of recovery as the impact from regulatory and structural changes strengthens”.
Card Factory had its third straight day of rises the company rebounded from its 10% drop last week. The upturn came after Liberium Capital reiterated its buy rating for the stock over the weekend.
Oacdo continued to climb after Macquarie initiated coverage on Tuesday at ‘outperform’ with a 410p price target, saying the market is significantly underestimating operating leverage in the company’s business model.
“We think conservative company guidance on operating costs is holding back the market,” the broker said.
It noted that in its first-half results, Ocado set the bar low, guiding to +100-200bps long-term margin from warehouse and delivery efficiencies.
Macquarie said a lack of clarity on timing or further upside has put a lid on expectations, adding that Ocado has a history of setting itself very beatable targets.
Of the few fallers of the day, Home Retail Group plunged after it warned its full-year profits will fall short of expectations due to trading uncertainty caused by Black Friday.
The group said its performance in the first half of the year had been “mixed”, as pre-tax profits at Argos tumbled 47% year-on-year to £6.4m, while Homebase profits rose 23% to £34.3m.
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