IG Group, Alliance Trust and Empiric

“The blue chip index confounded forecasts and opened a shade higher with the main focus today being the eurozone’s inflation figures. Asian markets started in positive territory, while global oil prices remained around the $50 a barrel mark,” says AJ Bell Investment Director Russ Mould.

“Investors were quick to take a punt on spreadbetting firm IG Group after a bullish pre-close update and a forecast that full-earnings will be slightly ahead of market expectations.

“The group has performed well in a relatively quiet fourth quarter. The group’s robust performance resulted in higher variable operating costs in the last part of the year, including an increase in online marketing spend, where the payback remains compelling. But this cost increase was more than offset by the ongoing strength in trading revenue.

“Alliance Trust was another early riser after it confirmed an informal approach from fellow FTSE250 investment trust RIT Capital Partners. Alliance Trust’s board is currently carrying out a strategic review which is likely to take some months. Any formal merger proposal from RIT will be incorporated into the review alongside all the other options being considered.

“Empiric Student Property continues to add to its portfolio with the acquisition of three operational, direct-let, premium student accommodation properties in Leicester. The city has more than 30,000 full-time students at its two universities with over a quarter coming from overseas and almost one-in-five being postgraduates. Empiric is now exploring further opportunities in this popular student city.”

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