THURSDAY MARKET CLOSE: Broker note helps M&S

A broker upgrade helped Marks & Spencer rise more than 3 per cent as the wider market struggled to choose a direction.

But despite mixed newsflow on the Syria crisis that sent it into the red around midday, the FTSE 100 managed to end the day a respectable 57.7 points or 0.9 per cent higher at 6,532.44.

Michael Hewson, senior analyst at CMC Markets, said: “The key movers today have been largely as a result of broker upgrades and other related news flow. High street bellwether Marks & Spencer has been one of the standout performers after getting an upgrade from HSBC.”

M&S shares rose 16.2p to 494.9p and are at their highest level since 2008, after HSBC’s upgraded its target price and said the retailer was well placed to benefit from the recent improvement in economic conditions.

InterContinental Hotels was also feeling the benefit of an upgrade as UBS issued a “buy” note pointing out that recent share price weakness contrasted with improvements in the business. The shares added 39p at 1,875p.

Lloyds Banking Group led gains in the financial sector on reports that the UK government might delay the sale of some of its shareholding in the bailed out lender due to volatility concerns about the current Syria situation and Fed tapering. Its shares cheered 2.1p to 74.8p, while Royal Bank of Scotland added 7.2p to 335.8p and Barclays rose 6.5p at 296p.

Dixons Retail Group was among the biggest risers in the FTSE 250 Index as its latest trading update offered more cheer for investors. The PC World and Currys owner revealed deals to offload its troubled French business PIXmania and its ElectroWorld arm in Turkey. As both businesses are loss-making Dixon’s shares surged 5.9 per cent or 2.6p to 46.9p.