MARKET REPORT: Raspberry Pi in festive mood as shares rise
The traditional Santa Rally may not have arrived yet, but DIY computer manufacturer Raspberry Pi has certainly had a fantastic time, valued at more than £1 billion.
The FTSE 250 share was on the rise again yesterday and is up 74% this month.
Much of this has happened since December 18, when it was announced that US-based SW Investment Management had acquired a 3.59% stake in the British company, which only went public in London six months ago.
Raspberry Pi made a strong debut on June 11 following its public offering at 280p per share, rising to 385p at the end of trading that day. Since then, the stock – more than half of which is owned by just two holders – had been rising steadily before this month’s boost.
Raspberry Pi rose another 7%, or 42p, to 640p, before falling again after hitting a new intra-day peak of 721.5p, proving to investors that tech floats can work in London, albeit thanks to US influence.
Overall, the mood after Christmas was mixed, although volumes were thin. The FTSE 100 index closed 0.16%, or 12.79 points, higher at 8,149.78, but the FTSE 250 ended 0.4%, or 82.86 points, lower at 20,488.65.
Among the minority of FTSE 100 gainers, Centrica rose 2.2%, or 2.85p, to 131.85p as the British Gas owner began buying back £300m of shares, bringing its total buybacks since November 2022 to £1.5 billion.
Energy companies also rose, with BP up 1.1% or 4.2p to 385.45p and Shell up 0.47% or 11.5p to 2440.5p, while oil prices remained firm, supported by new economic stimulus from China.
But Anglo American fell 1.66%, or 39.5p, to 2342p after Chile’s environmental regulator laid four charges against the Los Bronces copper mine.
Builder Taylor Wimpey fell 0.74%, or 0.9p, to 120.6p as the sector was hit by concerns over mortgage rates. But fellow builder Vistry recovered modestly, adding 2.83%, or 15.5p, to close at 563p, after falling 16% on Christmas Eve following an unusual profit warning – the third of the year.
While the market was forgiving after the festive break, analysts were less so. Irish broker Davy lowered their recommendation for Vistry from ‘outperform’ to ‘neutral’.
Also on the FTSE 250, Syncona rose 0.58%, or 0.6p, to 103.2p as it emerged that one of its investments, Achilles Therapeutics, had sold its technology assets to AstraZeneca for £9.5m.
Syncona said the value of its share in Achilles as of September 30 was £8.5 million, equivalent to 0.7% of its net asset value.
Among small caps, Zenith Energy rose 35.3%, or 1.2p, to 4.6p, boosted by the latest ruling by the International Center for Settlement of Investment Disputes’ arbitral tribunal in the company’s case against Tunisia.
The energy group is suing the Tunisian state for £500 million over breaches of trade agreements with Britain over the Sidi El Kilani and Ezzaouia concessions.
But Walker Crips lost 5.56%, or 1p, to close at 17p, with the London stockbroker and asset manager posting a first-half loss of £1.5m despite a 2.3% rise in sales.
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