Defence contractor QinetiQ should not be tarnished with similar brush as profit warning-hit rival Ultra Electronics, analysts at Berenberg cautioned, placing a rocket in the former’s shares and lifting them back a 2-and-a-half-year low.
QinetiQ was pulled lower together with all of those other United kingdom defence industry after Ultra accepted that it’ll miss sales and growth targets.
QinetiQ, whose shares crash-arrived within the summer time after warning of their own orders slowdown, continues to be unjustifiably oversold, analyst Charlotte now Keyworth contended in her own upgrade to “buy”.
She added that the buying chance continues to be produced following a spate of shorting activity against United kingdom aerospace and defence stocks following Ultra’s 29pc plunge over 2 days. Keyworth’s comments boosted QinetiQ 16.5p, or 8.2pc, to 218p.
Elsewhere, Sage’s proceed to cloud-based subscription services sent shares within the United kingdom ’s second-largest tech firm through the roof.
A 41pc begin pre-tax profit marked the finish of the two-year transformation plan, but after climbing around 4.3pc in intraday trade, shares drifted back lower to simply a 7p gain at 782p.
Waste management specialist Biffa nudged up 4.8p to 255p after reassuring investors that it’ll continue its spending spree with between £25m and £30m to become put aside each year to snap up firms along with a “healthy pipeline” of acquisitions already arranged.
Royal Mailacquired 12.1p to 411.4p after Morgan Stanley gave a less gloomy assessment from the embattled deliverer’s letter and parcel volumes in front of the crucial festive period. Analyst Penelope Butcher cautioned the FTSE 250 firm’s fate still is based on the macro outlook and also the results of its bitter pensions dispute with unions.
Another former condition monopoly, BT, rose 1.7pc after its mobile arm EE scored a court victory over Ofcom. The regulator might have to return vast sums of pounds in spectrum licence charges to operators following the Court of Appeal ruled against its 2013 decision to treble bills.
Elsewhere around the mid-cap index, catering service SSP wooed investors having a special dividend.
Its shares leaped 51p to 658p despite acknowledging that growth will slow. London’s rare metal miners soared as silver and gold prices rose awaiting more careful minutes in the US Federal Reserve’s latest policy meeting.
Acacia Mining surged 15.7p to 197.7p while Mexico-based producer Fresnillo rose 56p to £13.49.
The broader blue-nick index pared early gains to complete just 7.68 points greater at 7419.02 because the global rally on markets required a breather and also the pound dismissed the OBR’s harsh outlook for that United kingdom, rising .4pc from the dollar to flirt using the $1.33 mark.