Market Report: Analyst calls on the Bible to back hopes for Barclays

The Square Mile tends to be more concerned with Mammon than spiritual matters. Yet yesterday the Bible was helping Barclays in the run-up to the release of its first-quarter results tomorrow, as Investec's banking guru Ian Gordon turned to the Old Testament for inspiration.

Ahead of the numbers, the analyst decided to quote Moses himself: "Do not be afraid. Stand firm and you will see the deliverance (Exodus 14:13)".

In his own words this time, Mr Gordon said although the City's expectations had recently risen sharply thanks to encouraging results from US banks, he still expected Barclays numbers to beat forecasts.

Specifically, the scribe predicted its Barclays Capital investment bank arm would post revenues for the period of £3.5bn – £140m higher than consensus. He also argued that the increased optimism of analysts has not been "adequately reflected" in the performance of the stock.

Whether by divine intervention or otherwise, Barclays ended up advancing 6.45p to 211p.

It is not the first time Mr Gordon has used the Good Book in relation to Barclays – "But the men marvelled, saying, What manner of man is this, that even the winds and the sea obey him! (Matthew 8:27)" was the passage he highlighted in February regarding the bank's boss, Bob Diamond.

Meanwhile, when appearing in front of the Treasury Select Committee last year, Mr Diamond was rather pointedly asked by MP John Mann why it was "easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of heaven?"

Following the sharp sell-off at the start of the week, the FTSE 100 bounced back by 43.92 points to 5,709.49 after successful bond auctions in the Netherlands, Italy and Spain went some way towards dampening concerns over the eurozone debt crisis, although economic data from the States was mixed.

With Man Group's share price having lost more than 60 per cent in less than seven months, UBS analyst Arnaud Giblat claimed those investors still left in the hedge fund giant would accept a takeover approach priced at 150p, despite the firm having moved above that level last month.

Mr Giblat argued there was a "substantial risk" of the group attracting an approach and that a 50 per cent premium to the current share price "would be sufficient to obtain shareholder approval".

With the analyst keeping his "buy" recommendation, Man shot up 4.45p to 97p, having closed on Monday at an 11-year low.

The commodities sector saw a rally, including Xstrata. The digger ticked up 20.5p to 1,149p after it was revealed Qatar's sovereign wealth fund had raised its interest again, and with the Gulf state reportedly a fan of the merger between the two, Glencore finished 7.2p stronger at 415.75p.

British Airways-owner IAG flew up by 5.9p to 168.5p on a rush of broker support. Credit Suisse raised its advice to "outperform", citing optimism on pricing during the summer, while at the same time Davy's analysts removed their "sell" rating.

The cigarette makers were among those in the red after Bank of America Merrill Lynch announced that it was time to take profits. Cutting their ratings on both Imperial Tobacco (27p lower at 2,491p) and British American Tobacco (56.5p lower at 3,157p) to "neutral", scribblers from the broker added that – in the wake of recent takeover bid talk – they did not expect the former would receive an approach "imminently".

The Footsie's wooden spoon ended up in the hands of Capita, with the outsourcer sliding 46.5p to 682.5p after raising $441m (£273.3m) through a placing of shares at 685p a pop. Boss Paul Pindar did not help by taking the opportunity to get rid of 400,000 of his shares, which netted him around £2.7m.

News of a share placement from Redrow was received rather better. The housebuilder advanced 9p to 126p on the FTSE 250 after saying that it would raise roughly £80m, thanks to the placing and an open offer which will be underwritten by the investment vehicle of chairman Steve Morgan, who could see his stake rise above 40 per cent.

Ophir Energy, which has recently been boosted by takeover speculation, spurted up 16p to 575p after its fellow Africa-focused driller Cove Energy agreed to an improved offer from Royal Dutch Shell (up 21p to 2,200.5p) With the new bid priced at 220p-a-share, Cove finished 10p stronger at 227p on Aim.

Small-cap pharma firm Vectura perked up 3.75p to 61.25p following encouraging results from the latest study on its QVA149 lung drug, which it is developing with Swiss giant Novartis.

At the same time, Aim-listed tiddler Summit rose 8.7 per cent to 3.12p after getting approval for trials to start on a muscular dystrophy treatment.

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

The 50 Best beachwear

The 50 Best beachwear

The hottest summer gear for men and women
Still standing: George Galloway reveals why his staunchly Leftist outlook is still invariably right

Still standing: George Galloway

Written off, ridiculed, wrongly accused of taking bribes the honourable member for Bradford West, has never bowed to the critics.
How will Daniel Radcliffe's fans react to his latest turn - as a damaged, drug-taking Beatnik poet?

Daniel Radcliffe as drug-taking Beatnik poet

His decade as the boy wizard may be over, but that hasn't hexed Daniel Radcliffe's enchanted life.
For whom the bell tolls: £20m 'Memo' project takes shape on Dorset's Jurassic coast

'Memo' project takes shape on Dorset coast

It started as a stonemason's visionary idea – to commemorate all the species that have ever existed and are now extinct.
Just add sunshine: Bill Granger's Turkish delights

Just add sunshine: Bill Granger's Turkish delights

Turkish cuisine is perfect for those long, sociable weekend meals with friends. It's just a shame that money can't buy the key ingredient.
Objets czar: David Usborne’s collection of myriad objects is quite the mystery

Objets czar: David Usborne’s collection of myriad objects

To others, they're junk. To David Usborne, they are his life: useful gizmos, mysterious thingamajigs and anonymous articles that dominate his home.
The iron ore lady: Why the world's richest woman is mired in controversy

World's richest woman: Gina Rinehart

Family feuds, attempts to control the Australian media and bitter public disputes are keeping the mining magnate in the headlines.
We just click: How Lego keeps building on its success

How Lego keeps building on its success

This year, Lego announced record profits. Gerard Gilbert visits its Denmark HQ.
The other bits: Mark Hix creates delicious and economical meals with cheaper cuts of meat

Mark Hix cooks with cheaper cuts of meat

Our chef creates delicious and economical meals on a budget
Strokes of genius: How to create summer's bold make-up look

Strokes of genius: Summer's bold make-up

From coral lips to fly-away fringes, make-up artist Kim Brown and hair stylist Richard Scorer reveal how to create the look
Marking his territory: Kilian Hennessy creates fragrances designed to provoke the senses

Marking his territory: Kilian Hennessy

The perfumer creates fragrances designed to provoke the senses
Photo essay: Britain's 1948 Olympians today

Britain's 1948 Olympians today

Photo essay
The top five E3 2012 triumphs: From Ubisoft's suite of titles to Dishonored and The Last of Us

The top five E3 2012 triumphs

The games and moments that left us grinning like the Cheshire Cat
The green movement at 50: Can the world be saved?

Can the world be saved?

Population growth and climate change are the big problems facing the earth in the next 50 years. But are there any solutions?
France: Will xenophobia go mainstream?

France: Will xenophobia go mainstream?

In the beautiful Rhone delta, John Lichfield visits a village where a dangerous new political landscape is taking shape