UK shares surge in what some market watchers are calling a dead cat bounce with investors still largely concerned about macro growth issues. The FTSE 100 index shoots up 98 points, or about 1.67%, to 5,970 in what could be a reaction to several sessions of selling over the past week or more.
In corporate news, the big story comes from the tech sector as computer designs software supplier AVEVA (AVV) is hammered as its potential suitor Schneider Electric (SCHN:PA) walks away from a merger. The pair are believe to have failed to find mutually acceptable terms on a tie-up leaving AVEVA's share price in ruins and analysts shocked, the stock down 35% at £14.04. This surprise news comes just a month after AVEVA reported a 46% slump in interim adjusted profits thanks to oil industry infrastructure projects getting kicked in to touch.
Staying with tech, microprocessor designer Imagination Technologies (IMG) is also heavily off, down 6.5% to 152.75p, as it continues to struggle on the trading front. The company, which typically specialises in graphics chip technology and is a big supplier to US giant Apple (AAPL:NDQ), posts half-year losses more than twice the size of a year ago as it gets squeezed by a slowing smartphone sector.
Oil explorer Tullow Oil (TLW) is up 6.6% to 163p as it reports successful drilling in Kenya. The Etom-2 well in northern Kenya encountered 102 meters (335 feet) of net oil pay in two columns and this could increase the potential of the existing Etom discovery.
Carpets, rugs and beds retailer Carpetright (CPR) leaps 7.7% higher to 505p on better-than-expected interims. CEO Wilf Walsh reports a 34.3% jump in underlying profit before tax to £9 million, generated from positive like-for-like sales in the UK and Europe and boosted by a lower rent bill, as store closures continue.
Superdry brand owner SuperGroup (SGP) is marked down 6.4% to £15.15 as broker Liberum downgrades its recommendation from 'buy' to 'hold', flagging promotional activity in stores and online and arguing 'the moment has come to take profits'.
Elsewhere, the latest gloomy grocery market share data from Kantar Worldpanel triggers price movements among the supermarket majors. Sainsbury's (SBRY) rises 9.5p to 246.4p on news its sales grew 1.2% in the 12 weeks ending 6 December, increasing its market share to 16.7%, while investors focus on increased online sales from unloved market leader Tesco (TSCO), marked up 3.7% to 148.3p early doors.
Among the bigger movers, Arian Silver (AGQ:AIM) plunges 80% to 2.25p after its shares resumed trading on AIM after a temporary suspension.
Trafalgar New Homes (TRAF:AIM) feels the squeeze in UK house building as it tumbles £170,000 into the red at the half-year stage. That sparks a 23% share price sell-off to 0.65p.
OTT supplier Motive TV (MTV:AIM) announces plans to make TabletTV available on the recently announced new Apple TV platform in the US, UK, and throughout the world. That news has investors bidding the stock up 28% to 0.02p.
Events firm UBM (UBM) is up 2.8% to 486.5p as it agrees to sell its PRNewswire business to Cision for $841 million. Management pledge to return £240 million to shareholders through a special dividend and will use the remaining proceeds for bolt-on acquisitions.
A downgrade from Barclays’ analysts sends OneSavings Bank (OSB) 6.2% lower to 324.1p on expectations of a 2.3% downside in the price.
Investors take profits in Tristel (TSTL:AIM) on the infection prevention and hygiene products specialist on course to meet expectations of a £2.9 million pre-tax profit target for the year to 30 June 2016.
