M&S shares fall after strong results as shareholders sell for profit
M&S shares lost some of their sparkle today as investors took the opportunity to take profits after a strong run for the recovering blue-chip company.
Shares were 6% lower, although the wider market steadied after its recent bloodbath to reach lunchtime 62.4 points higher at 5595.1.
The improvement for the market was welcome relief for beleaguered investors after seeing the Footsie lose more than 500 points in the past 10 days.
Mining and commodity stocks led the recovery with gains of more than 4% to offset some of last night’s heavy losses.
Oil and gas explorer Cairn Energy set the pace with a rise of 126p to 2109p while Antofagasta was up 86p to 1975p and BHP Billiton rose 40p to 1003.5p.
They were joined on the way up by Yellow Pages owner Yell after full-year results showing a 26.1% rise in full-year profits impressed analysts. With US growth prospects also strong, Yell stood 6% or 30p higher at 493.5p.
There was no such gain for M&S as investors viewed strong annual results from the group as the cue to take profits after an increase of 90% in its share price since June.
Shares were down 35.5p at 531.5p, even though full-year results were in line with expectations and chief executive Stuart Rose pledged to drive further growth at the high street business.
The market’s recovery was also seen in the FTSE 250 Index, which gained 242 points by mid-morning.
The biggest gain came from Associated British Ports after it emerged a consortium led by Goldman Sachs had raised its proposed offer to 810p a share - up on the 730p a share offered previously and valuing the business at £2.44 billion. With AB Ports allowing the party to carry out limited due diligence, shares in the company were up 15%, or 100.5p to 770.5p.
