With leading shares edging lower, an exception is Aberdeen Asset Management.
The fund management group is up 15.1p at 366.5p after a report that the company’s chief executive Martin Gilbert was courting possible buyers, to help halt asset outflows and prevent key staff from leaving.
But a spokesman for Aberdeen denied the story. He told Reuters: “In his 32 years running Aberdeen, Martin Gilbert has never approached anyone, formally or informally, about buying the business.”
Mike van Dulken, head of research at Accendo Markets, said:
While the shares were already rebounding with the wider market on easy money/stimulus hopes in October, getting back to 330-350p, the speculation has seen the shares break out and gap up to levels last seen in late July. A denial is not yet... putting pressure on the shares just yet. Short sellers have likely been squeezed out on the recent 20% rebound and don’t fancy another go, recent bottom pickers are holding on hoping their proves to be substance in the speculation while momentum traders are jumping on board in the hope of a quick return to 400p. Will further denial scupper takeover hopes or simply lead to claims of the ‘laddie doth protest too much’.
Overall the FTSE 100 has paused for breathe after last week’s rises, which were prompted by hints from the European Central Bank about further possible action to boost the eurozone economy and a surprise interest rate cut on Friday by China’s central bank.
The leading index is currently down 15.23 points at 6428.85, with WPP among the leading fallers. The advertising group is 27p lower at £14.53 after a cautious third quarter trading update, despite saying it expected to meet its full year target.
Mining shares have edged higher following Friday’s rate cut in China, despite the country saying over the weekend that its 7% growth target was not set in stone.
Antofagasta has added 7.5p at 582p, while Rio Tinto has risen 15p at 2521.5p.
