TRADER TIPS

What City insiders are recommending . . .

BUY THIS: Booker

PEEL Hunt has a ‘Buy’ rating on wholesaler Booker, which is in takeover talks with Tesco. The broker said the stock had plenty of attractions for Tesco after Booker saw third quarter non-tobacco like-for-like sales climb 4.7pc. Peel Hunt said it expects the £3.7bn deal to go through and so Booker shares offered ‘a cheap way into Tesco, particularly as shareholders will receive dividends through to completion’.

SELL THIS: CMC Markets

NUMIS says it is time to sell shares in CMC after the trading firm warned it expects lower profits in its next set of results. Numis said it assumed a slowdown in new customers and that it was likely revenue per client had fallen. The broker said it continued to have concerns about the rapidly changing regulations around the sector. The City watchdog last year announced a crackdown on the spread-betting market.