FTSE 100 up, Joule up on subsequent calls
Shares in lifestyle brand Joules rose today as investors welcomed a potential £15m investment from retail giant Next.
Joules, whose valuation has fallen this year as it struggles with rising costs, supply chain challenges and weaker consumer demand, confirmed talks of an investment that would lead Next to becoming a strategic minority shareholder.
The potential partnership would also give Joules access to Next’s Total Platform system, which allows third-party retailers to increase their sales without a high capital cost.
AIM-listed shares rose more than 50%, rising 17p to 50p after Joules issued a statement in response to weekend speculation. Subsequent stocks rose 6p to 6450p.
AJ Bell financial analyst Danni Hewson said: “Next does not typically buy companies outright, so it seems unlikely that an initial investment in Joules will lead to a full acquisition.
“Instead, expect it to become an influential shareholder and see more Joules products on Next’s website.”
Elsewhere, investors were focused on a potential major deal in the mining sector after former FTSE 100-listed stock BHP revealed a £5bn approach for Sydney-based Oz Minerals.
The move has the potential to add more copper and nickel to BHP’s portfolio, but hopes for success have been dented after the Oz board rejected the interest.
BHP shares were 16p lower at 2230.5p in a session as mining stocks were generally higher on the back of China’s better-than-expected export numbers.
Friday’s US jobs report also helped improve demand prospects, as the world’s largest economy added 528,000 jobs last month, compared to the 250,000 forecast.
The FTSE 100 index maintained its recent momentum by adding another 28.34 points to 7468.08. Investment platform Hargreaves Lansdown led the risers board as shares improved another 7% or 66.2p to 952p, after adding 5% on Friday’s results.
The UK-focused FTSE 250 added 27.47 points to 20,078.95, with defense tech firm Qinetiq among the climbers following Friday night’s £483 million deal to buy US-based cyber, data analytics and software development firm. Avantus Federal to buy.
Chief executive Steve Wadey called the proposed acquisition a “significant step” in Qinetiq’s five-year plan to expand its presence in the world’s largest security and defense market. Shares rose 4.6 pence to 380.6 p.