Market report: Private hospital giant Spire floats on the cheap but keeps its value
Britain's second-largest hospital chain, Spire Healthcare, would have struggled to pick a worse day to start trading with markets around the world tumbling, but it managed to keep its head above water — although only after pricing its float at the bottom end of expectations.
Shares were offered at 210p, the lowest point of a range that originally stretched to 300p. The pricing values Spire at £842 million. Spire opened at 211p before settling at 210.12p — not a significant bounce but no mean feat given wider market sentiment and the glut of companies which have fallen below their offer price this year.
Investors were jumping at defensive stocks today in anticipation of a bumpy ride ahead.
“Investors are heading for safe havens this morning as they assess the geopolitical ramifications of the downing of a Malaysian Airlines plane,” said Mike McCudden, head of derivatives at Interactive Investor.
“The renewed focus on the Ukraine on top of the military escalation in Gaza will fuel uncertainty and increase volatility in the days and weeks ahead.”
Severn Trent, headed by Liv Garfield, pictured, gushed up 18p to 1905p and United Utilities climbed 3.5p to 885.75p. Gold miners were also in demand — Randgold Resources put on 30p to 5115p and Fresnillo rose 3p to 905p.
The FTSE 100 lost 29.15 points to 6709.17. British Airways owner IAG, one of the worst hit on news of yesterday’s plane crash, recovered 1.3p to 332p as it reassured investors that flights do not enter Ukrainian airspace and said its weekly route to Kiev was under review.
Barratt Developments was the biggest faller on the Footsie, down 11.2p at 352.25p, after the house builder was hit with a downgrade from Liberum on valuation grounds. Persimmon also suffered, off 23p at 1243p, with investors speculating the company could have a similar issue despite Liberum affording it a hold rating.
Barclays turned bullish on British Land, arguing that the property developer is worth over £2 billion more than it previously thought. The bank upped its target price from 695p to 936p, claiming the company is set to be the big winner from rising office rents and booming property prices. Despite the endorsement, it lost 1.5p to 699.5p.
Anglo Asian Mining was buoyed 2.62p to 16.5p on AIM thanks to news that gold production at its Azerbaijan sites improved 39% in the second quarter, and copper output leapt 62%.
