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Ocado boosted by first overseas deal | |
(about 3 hours later) | |
Ocado shares have risen after the online retailer said it had secured a delivery deal with a European retailer to set up an online grocery service. | |
Ocado's shares initially surged 7% but by noon were just 1.8% higher as investors hailed the firm's first overseas deal, which it had originally pledged to secure by the end of 2015. | |
Ocado did not name the retailer or say how much the deal was worth. | Ocado did not name the retailer or say how much the deal was worth. |
The wider FTSE 100 was slightly lower, slipping 0.3% to 7,527.22. | |
Neil Wilson, analyst at spread betting firm ETX Capital, said it was still unclear what value the deal would bring to Ocado. | Neil Wilson, analyst at spread betting firm ETX Capital, said it was still unclear what value the deal would bring to Ocado. |
"We don't even know who the company is - Ocado simply dubs it a 'regional' retailer (not a national one). This is progress after a lot of promises, but it's not exactly like doing a deal with Wal-Mart - yet," he said. | "We don't even know who the company is - Ocado simply dubs it a 'regional' retailer (not a national one). This is progress after a lot of promises, but it's not exactly like doing a deal with Wal-Mart - yet," he said. |
Old Mutual was among the biggest risers, gaining over 2%. | |
The firm was continuing to gain from Friday's announcement that the firm's wealth management arm had snapped up the financial adviser network Caerus Capital Group. | |
Wolseley also ticked higher, rising 0.4% after the plumbing supplies firm rating was upgraded to "overweight" by JP Morgan. | |
The US bank said it expected Wolseley's earnings from its US business to increase. | The US bank said it expected Wolseley's earnings from its US business to increase. |
Mining stocks were among the top losers with Antofagasta down 2.7% and Anglo American down 1.4%. | |
The pound was up 0.09% against the dollar at $1.29020 and 0.46% higher against the euro at 1.14477. euros. |