U.K. Stocks Advance; Shire, Aggreko Shares Lead Benchmark FTSE 100 Higher
U.K. stocks climbed for a sixth day, the longest stretch of gains in nine months, led by a rally in Aggreko Plc and Shire Plc after analysts recommended the shares.
Aggreko, the world’s largest provider of mobile power- supply equipment, rose 1.7 percent after Citigroup Inc. upgraded the stock to “buy.” Shire advanced 2 percent as Deutsche Bank AG rated the drugmaker “buy” in new coverage. Schroders Plc limited declines on the FTSE 100 Index, falling more than 3 percent.
The benchmark FTSE 100 rose 20.10, or 0.4 percent, to 5,237.92 in London, after swinging between gains and losses at least five times today. The FTSE All-Share Index gained 0.3 percent and Ireland’s ISEQ Index advanced 0.3 percent.
Aggreko climbed 1.7 percent to 1,470 pence after Citigroup raised its recommendation for the shares to “buy” from “hold,” citing the company’s “unique assets.”
“Last week’s investor trip to Africa highlighted the sheer magnitude of opportunity which Aggreko has over the short, medium and long run in temporary power,” London-based analyst David Phillips wrote in a report to clients. “We think there are many years of growth in prospect.”
Shire gained 2.5 percent to 1,462 pence after Deutsche Bank recommended investors buy the drugmaker which said “strong earnings per share growth and improving sales persistency” would drive the share price higher.
Schroders led declining shares, falling 3.3 percent to 1,320 pence as Citigroup downgraded the second-largest publicly traded U.K. money manager by assets to “sell” from “buy.” Analysts cited concern that retail investor demand will slow this year.
Man Group Plc also fell, falling 2.6 percent to 239.2 pence. The largest publicly traded hedge-fund firm reported a 3.1 percent decline in the net asset value of its flagship Man AHL Diversified Futures Ltd. over the last week.
Irish Life & Permanent Plc surged 7.6 percent to 1.86 euros in Dublin trading. Deutsche Bank initiated coverage of the Dublin-based lender with a “buy” recommendation, saying pessimism on the shares looks “well overdone.”
Jupiter Fund Management Plc climbed 15 percent to 190 pence on their first day of trading in London. The company priced its initial public offering at 165 pence.