WPP rallied yesterday after speculation that a division of the Kantar market research company, which it co-owns, could be sold.
Shares in WPP have slumped over the past year as it grappled with tech clients slashing their spending budgets.
In recent months boss Mark Read has been forced to lay out dismal results after WPP felt the full force of an economic downturn last year.
But investors yesterday were cheered by reports from Sky that market research business Kantar could auction off its Kantar Media division.
Investors breathed a sigh of relief at the prospect of a cash windfall for the beleaguered firm.
Boost: WPP holds a 40 per cent stake in market research company Kantar, meaning a sale could leave it flush with £400m
The unit, which manages Britain’s television audience measurement system, Barb, could be worth as much as £1billion, according to the reports.
WPP holds a 40 per cent stake in Kantar, meaning a sale could leave it flush with £400million. The remaining 60 per cent is held by private investment firm Bain Capital.
Shares in WPP increased 3.8 per cent, or 28p, to 770.2p, making it the best performer on the FTSE 100, which lost 0.4 per cent, or 33.46 points, to 7,689.61. The FTSE 250, meanwhile, lost 0.8 per cent, or 161.66 points, to 19210.39
Staying with the FTSE 250, unrest in the Middle East paved the way for ship broking giant Clarkson to boost its profit forecasts yesterday as it topped the mid-cap index.
More ships are being chartered as transport companies attempt to avoid the Red Sea, where attacks on boats from Houthi rebels in Yemen have increased.
Shipping firms have had to arrange longer voyages to avoid using the Suez Canal, where tensions have flared following the war between Israel and Hamas.
Although Clarkson did not directly acknowledge the conflict, a spokesman said it had seen ‘strong trading throughout the final quarter [and] particularly from the broking division.’
The firm, which is the world’s largest shipping services provider, is set to post annual results in March. Shares in Clarkson gained 6.6 per cent, or 215p, to 3480p.
It comes a day after the boss of Next, one of the High Street’s most recognisable fashion chains, warned that its stock deliveries would be delayed by the attacks.
Lord Wolfson had said it would likely delay stock arriving in the UK by a fortnight and that this could result in ‘moderate sales’ if the disruption continued.
His firm’s shares were hit yesterday after HSBC downgraded the stock to a ‘hold’ from a ‘buy’.
The update sent shares down 1 per cent, or 84p, to 8466p.
HSBC brokers pointed to uncertainty over the impact of interest rate cuts or ‘potential for prolonged Suez Canal disruptions’ beyond the current first quarter.
And oil prices continued to rise, up more than $1 to $78, amid the turbulence in shipping routes through the Red Sea.
Russ Mould, investment director at broker AJ Bell, said: ‘Higher oil prices and any problems transporting goods to major locations are both key inflationary factors and are naturally driving market concerns that interest rate cuts may not happen until further into the future.’
Often when directors sell off lots of stock, investors get worried.
Not so for Ascential. Ascential’s shares hardly moved despite chief financial officer Mandy Gradden selling £2.45million of stock. She sold 850,000 shares for 288p a pop. Ascential rose 0.1 per cent, or 0.2p, to 292.4p.
But it seems there is no end in sight for the hospitality industry’s woes as Revolution Bars announced the closure of eight bars in England. Shares plunged 21.1 per cent, or 1.15p, to 4.3p adding to a 41.3p drop over the past year.
