Brave investors pushed the main UK stock indices upward in morning trading, despite reports that banks will begin moving operations out of the UK before the end of the year. Experts have also voiced concerns about US government debt once interest rates start to rise. Read The Trader Nicole Elliott's morning update here.
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Shares in troubled fashion chain French Connection (FCCN) leapt more than 20 per cent following reports over the weekend that the company could be purchased by an overseas buyer or private equity group. French Connection hasn’t reported a profit since 2012, but there is speculation over the intent of US hedge fund Gatemore Capital Management, which has been busy building its stake in the London-listed company, and pushing for management changes.
FTSE 250 aerospace and defence group Cobham (COB) suffered a 17 per cent drop in its shares after it delivered a third profit warning in less than a year. Management blamed the underperformance of the satellite communications, wireless and integrated electronic solutions divisions in the third quarter.
Shares in Plus500 (PLUS) dipped by as much as 6 per cent after management reported average revenue per user declined by more than a quarter during the three months to the end of September. Management said this was due to an increase in new customers, which do not contribute significant revenue in the quarter they are recruited in. As a result, overall sales declined 4 per cent, to $77.5m (£63.3m), compared with the same period last financial year. However, the number of active customers increased by a third and the number of new customers was also up by almost half to more than 25,000.
OTHER COMPANY NEWS
Shares in Fusionex International (FXI) leapt 16 per cent after the big data software provider guided towards cash profits "significantly ahead" of expectations for the year to 30 September, despite promoting and investing in its recently launched GIANT 2016 platform.
