Collagen rises strongly; FTSE has best day for a week
Thur close: Shares in Scottish drugs firm Collagen Solutions soared 10.75% at one point before closing 3.23% higher at 12p after a client received backing from the US Food & Drink Agency.
Mike Mitchell at Panmure Gordon agreed with management’s assessment that this could have a direct revenue generating potential for Collagen.
“We consider this to be the case over the longer term, making no change to our forecasts this morning, but see the news as important affirmation of the model and development trajectory for the company.” He rates the shares a buy.
London shares enjoyed their biggest one-day gain in a week, boosted by a commitment from ECB chief Mario Draghi to inject more into the central bank’s asset-purchase programme if required to offset the effects of a riskier economic backdrop.
The FTSE 100 index was up 1.8 percent at 6,183.09 points at its close.
Easyjet was flying higher after lifting its full-year profit guidance as record passenger numbers in August offset higher costs.
International Consolidated Airlines also continued to rise after saying it carried 12.4% more passengers in August than it did in the same month last year.
Supermarket retailer Wm Morrison got a boost after UBS upgraded the stock to ‘neutral from ‘sell’ and lifted the price target to 175p from165p.
In economic data, the UK service sector grew at its weakest pace in over two years.The UK Markit service Purchasing Managers’ Index declined from 57.4 in July to 55.6 in August, its lowest level since May 2013 and short of the 57.7 reading analysts had expected.