Pubs and brewers have been a bit left behind in the recent market rally, but that now seems to be changing.
The initial catalyst was a good trading statement from The Restaurant Group, owner of the Garfunkel's and Chiquito chains. The group said like-for-like sales had increased by 5% in the 18 weeks to last weekend, pushing its shares up 21p to 168p. Citigroup upgraded from hold to buy with a 180p target.
That seems to have turned attention to similar businesses, with pubs group Enterprise Inns up 42p to 436.75p. There are also hopes that Enterprise will gain tax efficient Reit [real estate investment trust] status after its recent suggestion that it was planning such a move.
Marstons is ahead 27.5p to 227p after an upbeat note from Merrill Lynch, while Greene King is 39.5p better at 574.5p.
Meanwhile, Mitchells & Butlers added 14p to 339.5p on talk that Robert Tchenguiz - who controls 23% of the company - was trying to increase his stake. There has been much speculation about the state of Tchenguiz's finances recently, so some analysts were wondering why he would buy more of M&B where he is already sitting on heavy losses. But one trader said he might want to make sure he has a say if M&B goes through with its plan to sell a 29% stake to private equity.
Commodity companies such as oil and mining groups were generally lower, prompting Ryan Kneale at City bookmaker BetsForTraders.com to comment: "Volatility would appear to be increasing again as quarter one earnings season draws to an end, with the markets undecided on where to head next. At present we are seeing various sectors close up one day then down the next and with the price of commodities, such as gold and oil, see-sawing from day to day, it is easy to see why the indices are struggling for direction and following a similar pattern."
Still, the FTSE 100 is managing to hold onto its gains despite a dip on Wall Street. It is now 39.1 points higher at 6254.3.
