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Greggs on a roll; Lloyds; Oil, Drum REIT

GreggsBakery group Greggs continues to beat forecasts against tough comparatives, says AJ Bell Investment director Russ Mould.

“The group is on a roll with own shop like-for-like sales up 4.9% in the third quarter and is reaping the benefits of product initiatives which are driving increased customer visits and transaction values.”

The group’s shares closed up 82p (7.62%) at 1,158p.

Initial demand for Lloyds Bank shares has been huge, with 62,500 expressing an interest by last night. This is more than applied for Royal Mail shares over two weeks and is partly stimulated by expectations of immediate profits.

Crude oil prices jumped above the $50 per barrel mark today after a US monthly energy report suggested that supplies would be tighter next year.

Brent , the global benchmark for crude, rose 4.8% to $51.65 per barrel this afternoon, its highest level in a month.

Ted Baker reported a 14.6% rise in half year pre-profits from £15.6m to £17.8m and has lifted the dividend by 16.8% from 11.3p to 13.2p.

Supermarket stocks were buoyant ahead of market leader Tesco’s half year figures tomorrow. Tesco, Sainsbury’s and Morrisons were all among the strongest blue-chip performers in early trading.

Drum Property Group’s Real Estate Investment Trust (REIT), launched on the London Stock Exchange in May 2015, has completed two major UK acquisitions and exchanged contracts on a third, with a combined value of £20 million.

The Drum Income Plus REIT has completed the acquisition of the Duloch Park retail park in Dunfermline for £4.5 million and Mayflower House office complex in Gateshead for £2.67 million, with contracts exchanged on Gosforth Shopping Centre in a deal worth £12.25 million.

Following the three acquisitions, the REIT portfolio will have an average purchase yield of 8.05% with a year one cash on cash return of 10%. The portfolio now delivers an annual gross rent of £1.56m, with 96% occupancy across the office and retail sites.The Drum Income Plus REIT has completed the acquisition of the Duloch Park retail park in Dunfermline for £4.5m and Mayflower House office complex in Gateshead for £2.67m, with contracts exchanged on Gosforth Shopping Centre in a deal worth £12.25m.

The REIT started trading on the main market on 29 May, having already raised £30m in private first-round funding.

Acacia Mining’s shares tumbled after third quarter gold output came in below forecasts. The group blamed short-term factors at Bulyanhulu and Buzwagi and now expects full year production to be in line with last year at 718,851 ounces compared with initial guidance of 750,000-800,000 ounces.

 The FTSE100 closed up 27.24 pts at 6,326.16.

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