MARKET REPORT: Frasers Group back in fashion with City boosting Ashley

Analysts boosted Mike Ashley’s retail empire Frasers Group by raising their ratings on the stock.

RBC Capital Markets said the value does not take into account the likely resilience of its core retail businesses, as well as its real estate assets and strategic interests.

The analysts estimate that Frasers’ strategic investments are worth more than £900m, equivalent to around 200p per share, with most of this linked to the group’s stake in German fashion company Hugo Boss.

The RBC analysts value Frasers shares at 1050p each, a significant increase on current levels.

FTSE 100-listed Frasers rose 1.7 per cent, or 13p, to 780p. Peer JD Sports found support in its wake, up 0.9 percent, or 1.05 cents, to 124.65 cents.

With interest rate decisions due this week in both Britain and the US following the highly divisive US presidential election, investors were naturally surprisingly optimistic.

The FTSE 100 index rose 0.09 percent, or 7.09 points, to 8,184.24, but the FTSE 250 index fell 0.1 percent, or 18.45 points, to 20,461.29.

NatWest topped the FTSE 100 leadership board, rising 2.6 per cent, or 9.8p, to 385.1p, hitting an 11-year high as analysts at Peel Hunt raised their price target for the lender from 410p to 450p after recent results.

Other banks also made gains, with Lloyds adding 0.7 percent, or 0.4p, to 54.82p, and Barclays advancing 1.2 percent, or 2.9p, to 243.5p.

The big advance was helped by a recovery by the energy giants due to stronger oil prices, after Opec+ announced it would delay production increases for another month.

Shell advanced 0.6 percent, or 15 cents, to 2,594 cents, and BP gained 1 percent, or 3.8 cents, to 382 cents.

Anglo American lost 0.2 percent, or 5.5 cents, to 2,390.5 cents as the miner agreed to sell its 33.3 percent minority stake in Australia’s Jellinbah East and Lake Vermont steelmaking coal mines.

Telecoms giant BT Group traded higher than its third-quarter results due to be announced later this week, rising 1.4 percent, or 1.9 cents, to 142.15 cents.

But after strong gains following last week’s results, consumer goods giant Reckitt Benckiser fell 1 percent, or 49p, to 4945p after analysts at US broker Bernstein downgraded its market value.

Smith & Nephew fell 0.4 percent, or 3.8 cents, to 963 cents, after analysts at Jefferies cut their price target on the medical technology company’s shares following recent disappointing results.

On the second line, defense manufacturer Chemring lost early gains made following news of two contract wins by the defense manufacturer, one in Germany and one in the US. Shares closed down 0.8%, or 3p, to 353p.

Among small caps, financial consultancy DSW Capital rose 18.2 per cent, or 10 cents, to 65 cents after acquiring DR Solicitors, a healthcare-focused law firm, for £6.1 million.

Fuel cell technology supplier AFC Energy rose 31.6 per cent, or 2.56p, to 10.66p after reporting better-than-expected full-year trading, mainly driven by sales of hydrogen-powered power generators to Speedy Hire Services for customer leasing.