FTSE Movers: RAB Capital tumbles on delisting talk; M&S climbs

Shares in RAB Capital (RAB.L) tumbled on Wednesday after the AIM-listed hedge fund said it was considering de-listing from the stock exchange, while Marks & Spencer (MKS.L) led the FTSE 100 higher following a broker upgrade.

RAB plunged 2.25p, or 22%, to 7.9p after the hedge fund – renowned for buying into Northern Rock just before the lender collapsed – said clients continued to withdraw money.

‘The board intends to review the options for the company, including the appropriateness of maintaining an AIM listing, and the possible use of the company's surplus capital to provide some liquidity to shareholders, RAB said in a statement.

RAB’s share price has fallen 35% in the past year as it approached its post-financial crisis low of 6.4p, down from an all-time high of £1.25 in late 2007.

Sarah Ing, analyst at Singer Capital Markets, pointed out that with cash balances almost equal to market cap, a number of options are available to the firm, including a de-listing.

M&S advances

Marks & Spencer added 6.4p to £2.55 on the back of an upgrade from JPMorgan to ‘overweight’ from ‘underweight.’

The broker cited recent trading outperformance and scope for recovery, increasing its price target from 310p to 460p.

J Sainsbury improves

Meanwhile, J Sainsbury (SBRY.L) took on 2p to £16.42 after the supermarket group posted full-year profits slightly ahead of market expectations.

The group, Britain's third-largest supermarket chain, also said it was confident of progress in the forthcoming year, despite the uncertain economic environment.

‘Sainsbury's full-year 2011 results were bang in-line with expectations and the outlook statement is as expected,’ said analysts at Royal Bank of Scotland in a research note. ‘A decent year for the Group and we expect positive sales and profit trends to continue.’

Financials gain

Financial stocks were among the biggest gainers on the FTSE 100, as the benchmark UK index extended the previous day’s rebound. Man Group (EMG.L) gained 6p to £2.54, Barclays (BARC.L) was 4p higher at £2.82 and Royal Bank of Scotland (RBS.L) added 0.6p to 43p.

HSBC (HSBA.L) was a notable exception, easing 4p to £6.52, after the banking giant announced plans to target up to $3.5 billion (£2.1 billion) in cost savings over the next three years. Read about HSBC’s strategic review.