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Markets welcome Easter break in green

By FashionUnited

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Generally speaking, shares at both shores of the Atlantic

ended up on Thursday ahead of the 4-day Easter break in Europe. The FTSE 100 finished up 24.18 points at 6411.74 despite the struggles accused during the week by the euro.

Leading shares ended the week and the quarter on an upbeat note, despite the continuing worries about the Eurozone and the controversial bailout of Cyprus which involved major depositors losing much of their savings, reported 'The Guardian' Thursday.

Leading the European benchmark indexes, the London-listed FTSE 100 has gained 1 percent since the start of the month. The FTSE has noted 8.7 percent hike since the beginning of the year.

In the corporate news, Laura Ashley reported a positive start of the year, gaining 6.9 percent to 20.1 million pounds in profits for the full year, boosted by e-commerce and franchising and licensing.

“We believe the stock remains undervalued at 13.5 times our forecast 2014 earnings, valuing it at a discount to the sector and peers. This is unjustified, in our view, considering the company's track record, potential for Internet and overseas development, with both channels reporting significant growth in 2013. The company also has the support of a dividend yielding almost 7 percent, which we believe is sustainable given the company's model, strong cash flow and strength of balance sheet. The company is forecast to have a cash balance of around 30 million pounds by end of 2014. We reiterate our buy recommendation but increase our target price to 35 pence (from 32 pence) to reflect the strong performance in the general retail sector over the last year,” highlighted analyst Freddie George at Cantor Fitzgerald.

Across The Pond, the US S&P 500 re-conquered its 2007 highs on Thursday, boosted by renewed hopes on the US Federal Reserve will buy more bonds to speed up the national economy.
FashionUnited