MARKET REPORT: Boohoo bosses scoop up shares on the cheap as the scandal-hit online retailer falls out of fashion
Bosses at Boohoo have scooped up shares in the scandal-hit online retailer after another slump in the price.
The fast fashion company’s stock nosedived by more than a fifth this week after its auditor PwC quit and four other beancounters ruled out working for it.
Since July Boohoo has been rocked by claims that some of its clothes were being made in sweatshops, with staff paid as little as £3.50 an hour.
Sweatshop scandal: Boohoo’s stock nosedived by more than a fifth this week after its auditor PwC quit and four other beancounters ruled out working for it
An investigation found last month that bosses were aware of the concerns months before they were exposed in the media – though there was no evidence Boohoo had committed crimes.
With the stock unloved, executive chairman Mahmud Kamani yesterday shelled out £729,000 for 300,000 shares in the AIM-listed giant.
Catherine Catto, the wife of finance boss Neil Catto, bagged 5,825 for £15,000 and deputy chairman Brian Small bought 10,000 for £25,000.
When directors buy stock it often boosts a share price, because it shows they are confident about its prospects.
Stock Watch – ADM Energy
Oil and gas investment company ADM Energy has teamed up with a similar Dubai-based group to work on projects in sub-Saharan Africa.
The firm is keen to buy stakes in existing oil and gas fields, as well as investing in sites that are known to have fossil fuels but have not yet been developed.
Privately-owned Dubai Bridge Investments will provide or source funding for the ventures.
ADM shares rose 6.6 per cent, or 0.4p, to 6.5p.
But traders did not have a chance to digest the move, as the purchases were announced after the stock market closing bell, and shares had closed down 1.5 per cent, or 3.9p, at 250.1p.
In another deal, blue-chip business supplier Bunzl lost ground after a director sold £140,000 of shares.
Andrew Mooney, head of corporate development, offloaded 5,499 shares he had been awarded for about 2548p each.
Bunzl, which sells products such as toilet roll, plastic cutlery and cleaning supplies that companies need but do not sell on, dipped 1.7 per cent, or 44p, to 2500p.
Petra Diamonds’ stock lost its shine as the miner unveiled a plan that will virtually wipe out investors.
It put itself up for sale in June but no buyers came forward, so it will now be taken over by its bondholders in a deal that will leave shareholders with a combined stake worth 9 per cent.
Investors will need to clear the move – and Petra has said it is working on back-up plans in case it gets blocked. Shares fell 17 per cent, or 0.3p, to 1.38p.
Holiday Inn-owner Intercontinental Hotels Group (IHG) and Premier Inn-owner Whitbread were boosted by an upbeat note from brokers at JP Morgan.
The pair were upgraded from ‘underweight’ to ‘neutral’ as analysts said they believe profits could rebound in around three years and that worries about business travel ‘are overdone’.
IHG jumped 3.6 per cent, or 150p, to 4330p, while Whitbread rose 2.6 per cent, or 59p, to 2314p.
Investors piled into travel stocks after Heathrow Airport began offering voluntary, £80, one-hour Covid tests for passengers travelling to Hong Kong.
Setting up a robust testing regime could revive travel in the absence of a vaccine – particularly long-haul flights.
British Airways-owner IAG shot to the top of the FTSE 100 leaderboard as it rose 6.9 per cent, or 6.9p, to 106.85p, while aerospace supplier Melrose climbed 3.7 per cent, or 4.85p, to 134.45p and engine maker Rolls-Royce rose 3.2 per cent, or 7p, to 227p.
The pick-up helped keep the Footsie in the black on a day when the major indexes were treading water.
The FTSE 100 ended 0.08 per cent higher, up 4.57 points, to 5889.22, while the FTSE 250 rose 0.35 per cent, or 63.12 points, to 17,929.20.
The lockdown DIY trend is showing no sign of letting up for LED lights maker Luceco.
Shares in the group lit up – rising 11 per cent, or 24p, to 243p – after it upgraded its annual forecasts, citing better-than-expected demand from DIY customers and online sales.
From making ‘at least £23million’ this year, it thinks it will be between £28million and £30million.