MARKET REPORT: Marks & Spencer shares are off to a sparkling start to 2024

Marks & Spencer made a good start to the new year after a great 2023.

On the first trading day of 2024, shares on the High Street rose sharply by 1.3 per cent, or 3.6p, to 276p, after an upgrade by BNP Exane Paribas analysts.

That was the highest level in almost five years and came after the stock more than doubled last year, rising 120 percent.

The rally came amid a major turnaround in fortunes, driven by higher food sales and booming demand for the revamped fashion range.

BNP Exane Paribas said it was optimistic about the retail sector's prospects this year. M&S is likely to emerge as the 'Christmas winner' when the sector releases festive trading updates, according to analysts.

M&S's gains last year were eclipsed only by Rolls-Royce, whose shares more than tripled under chief executive Tufan Erginbilgic.

However, the motorcycle manufacturer's shares lagged slightly behind the pace, with the stock down 0.5 percent, or 1.6p, to 298.1p.

Another star performer in recent years is BAE Systems. Britain's largest defense company has benefited as governments ramped up military spending amid increased geopolitical tensions and conflict around the world.

Shares in BAE have doubled in value over the past two years, rising a further 0.5 per cent (or 5.5p) to 1116p yesterday.

There were also gains for FTSE 250 defense group Babcock. Shares rose 6.3 percent, or 25 cents, to 420 cents, having contributed to a 40 percent gain last year.

But overall it was a slow first day of trading, with the FTSE 100 down 0.15 percent, or 11.72 points, to 7721.52, while the FTSE 250 fell 0.9 percent, or 177.83 points, to 19,511.80.

Continued tensions in the Red Sea pushed oil prices higher.

Stock watch – Hvivo

Hvivo has won a contract worth £6.3 million to test a drug that can treat the common cold.

The life sciences group provides its customers with data about the effectiveness of their possible treatments.

Healthy adult volunteers are recruited and given both the virus and the antiviral drug.

The company will trial a biotech customer's proposed treatment for human rhinoviruses (HRV) at its new facilities in Canary Wharf in the second half of this year.

Shares rose 8.2 percent, or 1.95p, to 25.7p.

As a result, BP rose 1 percent, or 4.85p, to 471p, and Shell gained 0.2 percent, or 4p, to 2575.5p.

Airline shares flew high after an upgrade from investment bank Citi.

Wizz Air added 0.2 percent, or 5 cents, to 2,216p and British Airways owner IAG rose 0.7 percent, or 1p, to 156p.

AstraZeneca's drug Beyfortus has been approved for use in China as a treatment to prevent a common and contagious seasonal virus that affects babies.

Shares in the pharmaceutical giant rose 1.8 percent, or 188p, to 10,788p.

The American natural gas producer Diversified Energy Company sold a number of assets to a special purpose vehicle. The deal raised around £158 million, which the company used to reduce its debt burden.

Last month, the company's shares fell to a record low after four US politicians wrote a letter warning that the strategy risked “undermining efforts to combat climate change.” The stock rose 7.5 percent, or 83.5p, to 1,198.5p.

There was also good news for Angle after the cancer testing company revealed it would receive £198,000 to help with a pilot study for global pharmaceutical company Eisai.

As part of the deal, the London-listed company will provide analytics to assess a potential treatment for breast cancer.

Shares rose 2.1 per cent, or 0.25p, to 12p yesterday.

French asset manager Syquant Capital has announced a 5 percent stake in banking seller ScS.

The investor also owns shares in technology consultancy Kin And Carta (down 0.2 percent, or 0.2 cents, to 132.4 cents), North Sea producer Ithaca Energy (up 0.8 percent, or 1.2 cents, to 145.4 cents) and the City Pub. Group (-0.7 percent, or 1p, to 138p). Shares in ScS fell 0.4 percent, or 1p, to 263p.

Elsewhere, Union Jack Oil gained 3.8 percent, or 0.75 cents, to 20.5 cents after a report showed energy reserves at the Wressle field in Lincolnshire have tripled since 2016.