Shot in the arm for Kainos investors
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