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Asos leads FTSE and hits record high

By FashionUnited

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Leading online fashion retailer Asos was on the foot front of FTSE

Thursday, becoming one of the main risers after comments from the Bank of England gave the London benchmark index its biggest gain since November 2011. Meanwhile fashion peer Nicole Farhi joined the ever growing line of retailers going into administration.

Thursday closed with a bittersweet taste in London, as while Asos led the gains at the trading floor, Nicole Farhi announced it was entering administration. Aim-listed Asos hit a record high, up 5.5 percent to 43.55 pounds, which gave the online fashion retailer a market value of 3.6 billion pounds.

The FTSE 100 jumped 191.8 points, or 3.1 percent, to 6,421.67.

On the back of Asos’ rally, analysts at Jefferies calculated there was more to come. The broker, which had advised selling Asos in January has upgraded the stock to “buy” with a 62 pounds price target.

“We clearly overestimated the relevance of profitability to the thesis,” said analyst David Reynolds.

Elsewhere, Kering kicked off the session Thursday gaining 3.9 percent to 163.65 euros in the first Parisian exchanges, with the support of Exane BNP Paribas, which raised to "outperform" its recommendation, confirming its value at 190 euros. The analyst believes that the price increases in the second quarter Gucci will enjoy the half-year results. In addition, he believes that if the "lifestyle" industry will continue to display performance within, “the flow of bad news could dry.”

Finally, Zacks lowered shares of Luxottica Group S.p.A. (NYSE: LUX) from an “outperform” rating to a “neutral” rating in a research report released on Tuesday morning. Zacks currently has 57.90 dollars price objective on the stock.
FashionUnited