On Friday, British stocks bounced, including gains of resource companies as well as Burberry Group PLC, thus clearing the way for blue chips to head for a weekly win.
The British index FTSE 100 went up to 6,087.19, demonstrating a 1.2% increase, with fluctuating mining as well as gas and oil stocks bringing all sectors higher.
Unfortunately, Royal Bank of Scotland PLC showed quite disappointing results, at least it dropped 10%. By the way, the bank decided to delay the probability of any dividend payouts after the financial institution reported its eighth consecutive annual loss, resulting from huge conduct and restricting charges.
Among the risers, we should mention Burberry stocks, which went up 2.5% after a recent rating upgrade to purchase from neutral at Nomura. The given move comes in anticipation of the approaching change as the luxury fashion retailer is conducting a review of its business.
It’s apparent that a change of the group’s approach would be favorable to the market. Notwithstanding a recent rebound in the stock market, market participants see evident potential for a decent valuation if Burberry is able to take effective productivity measures, while staying disciplined on capital and cost allocation.