Shares in Aston Martin posted a seventh straight session of profit after a positive result on the track and hopes for a turnaround.
The FTSE 250 luxury car maker gained 15 percent, or 36.1 pence, to 276.1 pence in a rally that some analysts attribute to a “short squeeze.”
This happens when short sellers who bet against the stock are forced to close their positions to limit losses when stocks rise.
On track: Fernando Alonso drove his Aston Martin to third place at this weekend’s Bahrain Grand Prix in what was the first Formula 1 event of the season
The rally started last week when Aston Martin published its annual results for 2022. Although it posted a loss of £495 million, investors were encouraged by a more upbeat outlook for this year.
The feel-good factor was aided by Fernando Alonso’s surprise third-place finish at the Bahrain Grand Prix at the first Formula 1 race of the season.
Oddo BHF auto analyst Anthony Dick said: ‘It could be shortcovering or overall improved perception based on reassuring results.
“It is also possible that F1’s performance has something to do with it.” Analysts at Jefferies issued a warning, warning that Aston Martin shares are “pre-empting themselves.”
The FTSE 100 fell 0.22 percent, or 17.32 points, to 7929.71, while the FTSE 250 rose 0.69 percent, or 138.34 points, to 20,064.11.
Mining stocks plunged into the red after China issued a lower-than-expected 5 percent economic growth target.
Anglo American fell 3.7 percent, or 111 pence, to 2931.5 pence, while Rio Tinto fell 2.8 percent, or 172 pence, to 5972 pence, Glencore fell 3.9 percent, or 20.5 pence, to 502.5 pence and Antofagasta fell 1.5 percent, or 25.5 pence. p, up to 1638.5p.
Shipping company Clarkson gained 1.8 percent, or 60 pence, to 3365 pence after profit hit an all-time high. The company reported a profit increase of 45 per cent to £100.9 million. due to the strong performance of its brokerage division.
Rolls-Royce persevered after Bernstein raised the jet engine manufacturer’s target price from 108 pence to 165 pence. The shares, which are up 64 percent this year, added 2.1 percent, or 3.14 pence, to 152.78 pence.
Paddy Power and Betfair owner Flutter added 4.6 percent or 615p to 13,975p after Citigroup raised its target price from 12,500p to 13,500p.
James Fisher and Sons fell 5.3 percent, or 20.5 pence, to 370 pence after it said results would be published two weeks later than planned after recent business activity delayed the audit timetable.
The group, which provides marine engineering services, sold its James Fisher Nuclear Holdings business to Rcapital.
It also sold three companies last year and expects to report higher revenue than in the previous 12 months.
Foxtons rose 3 per cent, or 1.2 pence, to 41.2 pence after the broker acquired rival Atkinson McLeod for £7.4 million.
Lookers purchased the Shropshire car hire and estate agency company Fourways.
But shares of the car dealership fell 1.3 percent, or 1.2 pence, to 92 pence.
Seeing Machines fell 5.8 per cent, or 0.43 pence, to 7.01 pence after revenue from its aftermarket business fell 14 per cent to £8.6 million in the second half of last year due to limited delivery of hardware.
The company aims to prevent deaths from driving by installing cameras in vehicles that can detect if a motorist is tired. Sales were up 54 per cent to £20.3m for the six months to 31 December.
Elsewhere, Getech rose 15.5 percent, or 2.25 pence, to 16.75 pence after its hydrogen development company hired former ITM Power boss Dr Graham Cooley as its next chairman.
The energy software group bought H2 Green in January 2021 for £1 million. Cooley, who led ITM from 2009 to 2022, joins H2 Green as it seeks to increase its capacity to deliver clean energy.
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