Property, fashion and mergers

Monday 11 January 2016 

The blue-chip index confounded forecasts and edged slightly higher after an uncertain start and despite ongoing concerns over the Chinese economy, low oil prices and a raft of geopolitical issues.

“Investor sentiment towards international property group Savills (LSE:SVS) was dented after it flagged up concerns about heightened uncertainty over global economic prospects and rising interest rates,” says AJ Bell Investment Director Russ Mould.

“The group expects 2015 underlying results to be ahead of previous forecasts but its shares fell in early trading after it decided to retain its outlook for the current year. Savills expects a tempering of the strong transaction volumes of recent times in certain markets, although fundamentals remain sound.

“Sales at Koovs (LSE:KOOV), the fashion-forward business focused on the young Indian e-commerce market, jumped by 210% in the 14 weeks to 3 January following its first brand marketing campaign. This has raised awareness from 1% to 8% and traffic now exceeds one million visits a week.

“Shares in Royal Dutch Shell (LSE:RDSB) and takeover target BG Group (LSE:BG.) fell in early trading after one key investor, Standard Life (LSE:SL.), confirmed it would oppose the deal because oil prices are currently too low. Standard Life, by contrast, was top of the blue-chip board in early trading.”

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