Accountancy index bounces back
After weeks in the doldrums, the Accountancy Age/ADVFN index has rebounded led by accountancy recruitment specialist Michael Page which announced better than expected results.
Accountancy-related stocks rose 2.6p to close the week at 73.59 points after dipping for seven weeks. The FTSE-100 also rose, climbing to 94.42p, fuelled by the positive reaction by Wall Street to signs of a recovery in the US economy.
The winner of the week was Michael Page, which soared 16% after better than expected financial year results. The recruitment firm announced pre-tax profits of £54m.
Recruitment agency Hays was up 9% after Morgan Stanley said Michael Page’s results reflected well on its competitors because it showed the UK recruitment market is holding up well. The broker repeated its ‘buy’ recommendation on Hays.
After a brief rebound, Logica’s shares dropped 7% over the week on a wider telecoms sell-off. HSBC reduced its stance on the company from ‘hold’ to ‘reduce’.