Shot in the arm for Kainos in­vestors

The Daily Telegraph - Business - - Business - LATOYA HARD­ING

Med­i­cal soft­ware com­pany Kainos Group jumped by more than a quar­ter yes­ter­day af­ter it is­sued a bullish up­date and re­vealed a spe­cial div­i­dend of 6.7p.

The Belfast-based FTSE 250 group said trad­ing had been strong dur­ing the pan­demic and it ex­pected full-year rev­enue and ad­justed profit ahead of ex­pec­ta­tions. “Dur­ing the early stages of Covid-19, we suc­cess­fully adapted to the chang­ing busi­ness en­vi­ron­ment and we re­main con­fi­dent that we will be able to re­spond to any fu­ture chal­lenges in the wider macroe­co­nomic back­drop,” it said.

“How­ever, we main­tain our view that it is too early to pre­dict the du­ra­tion or the sever­ity of the Covid-19 eco­nomic dis­rup­tion and any im­pact it will have on our cus­tomers.” Shares climbed 209p to £10.36.

It came as travel stocks suf­fered se­vere tur­bu­lence on the FTSE 100 with Bri­tish Airways owner IAG nose­div­ing 15.6p to 183p, while In­ter­con­ti­nen­tal Ho­tels shed 149p, or 3.95pc, to £36.19. Ryanair fell 0.42p to 10.48p af­ter post­ing a £165m quar­terly loss. On the FTSE 250, Tui, Europe’s big­gest travel com­pany, led the lag­gards, with a fall of 38.6p to 301p, af­ter can­celling all hol­i­days to main­land Spain un­til Aug 9. EasyJet closed 8.9pc lower and cruise op­er­a­tor Car­ni­val sank 7.7pc.

The jump in Covid-19 in­fec­tions across the world, along with ris­ing US-China ten­sions, trig­gered a surge in the price of gold and other pre­cious met­als. Gold, seen as a safe in­vest­ment in times of tur­moil, soared to a record high of $1,945.72 an ounce, well above its pre­vi­ous record of $1,921.18 in 2011, while sil­ver rock­eted to a seven-year high of more than $24 an ounce.

Dol­lar weak­ness was a big fac­tor be­hind gold’s take-off, an­a­lysts said, af­ter vast mon­e­tary eas­ing by the US Fed­eral Re­serve un­der­mined con­fi­dence in the green­back with­out re­as­sur­ing in­vestors about the out­look for any fast Amer­i­can re­cov­ery.

Rus­sia-fo­cused min­ing group Poly­metal closed higher af­ter re­ceiv­ing a boost by Jef­feries. The bank raised its price tar­get to 1,785p from 1,600p.

Last week, the miner posted a 30pc rise in se­cond-quar­ter rev­enue to $641m (£498m), but gold pro­duc­tion jumped by 1.7pc. It ended 127.50p higher to £19.32, a rise of 7pc.

The rally in sil­ver and gold also boosted the share price of Fres­nillo, the Mex­i­can min­ing group, which climbed 85p to £12.76.

Else­where, Pear­son fell into the red af­ter Bar­clays cut its price tar­get from 555p to 550p, while Credit Suisse upped its price tar­get to 500p from 445p. Last week, the pub­lish­ing group re­vealed a 17pc fall in un­der­ly­ing first-half rev­enue, and ad­mit­ted its out­look re­mained un­cer­tain even though it an­tic­i­pated a re­cov­ery.

It closed 32.40p lower at 512.20p, a fall of 6pc. MAR­KET RE­PORT

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