It’s take-off for Qinetiq as brokers lift shares 8pc

AerospAce firm Qinetiq rocketed to the top of the FTse250 thanks to a broker upgrade.

Analysts at Berenberg said the firm’s shares were unjustifiably undersold – its stock is down almost 40pc since May – and it is in a unique position to benefit from increased investment in defence spending.

Unlike peers BAe and cobham, Qinetiq provides defence services such as weapon trials, rather than just products. The distinction means it is less affected by contract cancellations and cuts to defence spending.

Berenberg said: ‘We believe UK aerospace and defence stocks are experiencing wide-ranging short activity, creating real opportunity.’

It upgraded Qinetiq’s rating from hold to buy, sending shares up 8.2pc, or 16.5p, to 218p.

If commentators thought the chancellor’s budget was dull, the market seemed to agree.

The FTSE 100 was trading at 7448 when the chancellor stood up to make his speech and remained virtually unchanged an hour later. It finished up 0.1pc, or 7.68 points, to 7419.02.

russ Mould, investment director at AJ Bell, said: ‘The only real movers were the housebuilders – Barratt, persimmon, Taylor Wimpey and Berkeley sank to the bottom of the FTse 100 with drops of between 1pc and 3pc.’

The rest of the market had a relatively subdued response. British American Tobacco slumped 1.2pc, or 62p, to 5029p, as the chancellor announced plans to jack up tobacco duty at the rate of inflation – 3pc, plus a further 2pc. shares in cider specialist C&C

Group were virtually unchanged despite news of an increased levy on white ciders, nudging down 0.9pc to 2.9p, while alcohol retailer

Conviviality slumped down just 0.1pc, or 0.5p, to 419.5p. railway firms Firstgroup and

Stagecoach nudged up 1pc, or 1.1p, to 105.4p and 1.4pc, or 2.2p, to 160.8p respectively, amid news the young person’s railway card – which gives users up to a third off off-peak fares – would be extended to people aged 26-30.

The FTSE 250 finished up 0.4pc or 69.88 points to 20013.86 points –helped by Acacia Mining which soared 8.6pc, or 15.7p, to 197.7p.

shares in Gfinity nudged up after it toasted soaring full-year sales. The e-sports broadcaster said sales jumped 64pc to £2.4m in the year to the end of June.

The company is now powering ahead with its global expansion, following the acquisition of American rival cevo.

chief executive Neville Upton said: ‘This has been a pivotal year for Gfinity. As the e-sports sector goes from strength to strength so does Gfinity’s enviable reputation within it.’ shares increased 1.1pc, or 0.3p, to 23.3p. Meanwhile,

Reckitt Benckiser soared after Jp Morgan upgraded its rating to overweight from neutral, on the back of increased enthusiasm for its restructuring plan.

In october reckitt revealed it would be splitting its business into two units, rB Health and rB Hygiene.

The health division will include products such as Nurofen and Gaviscon while the hygiene home division will cover brands such as cillit Bang and Veet.

chief executive rakesh Kapoor is to take charge of the lucrative health faction, while rob de Groot – who heads reckitt’s european and russian business – will take charge of hygiene.

Jp Morgan said possible outcomes include a sale of reckitt’s hygiene and home business or more mergers in its health division, and added it sees the potential for a valuation of between £64 and £90 depending on the progress of acquisitions.

It raised reckitt’s target price to £75 from £69. The upgrade sent shares up 1.4pc, or 91p, to 6492p.

SHARES in Totally nudged up after the out-of-hospital care provider won a two-year extension on a key contract.

It comes through its subsidiary Vocare, which it acquired for £11m last month. The deal will see it provide out-ofhours services for NHS Vale of York and is expected to bring in around £3m a year.

Vocare is behind a string of NHS call centres and runs six of them for the non-emergency number, 111.

Shares were up 1.5pc, or 0.5p, to 33.75p.