Shares in Ocado fell back after unconfirmed speculation linking it with a possible takeover from Amazon faded.
The value of the FTSE 100 online grocer had soared by a third when it was reported that several suitors including the US giant had lined up offers.
But unconfirmed reports have claimed that Amazon had denied the speculation, prompting shares to fall 5 per cent, or 28p, to 529.8p. Ocado was approached for a comment.
The firm has recently flirted with relegation from the FTSE 100 after a £500million annual loss, and said shoppers were adding fewer items to online shopping baskets.
Michael Hewson, chief market analyst at CMC Markets, said: ‘The shares rallied strongly in anticipation that something might come out of the woodwork.
Ocado shares soared by a third when it was reported that several suitors including Amazon had lined up offers – but they have since fallen after the US giant denied the speculation
‘Ocado has a variety of deals with other big retailers, the likes of Krogers in the US, Carrefour in France, and Sobeys in Canada, while Marks & Spencer could also have a part to play given its 50 per cent stake in Ocado Retail .
‘How would any deal go down with any of these retailers who have partnership deals with Ocado?
‘And there is also the prospect that the Competition and Markets Authority might have something to say about any deal.’
The FTSE 100 rose 0.5 per cent, or 39.03 points, to 7500.49 and the FTSE 250 was up 2 per cent, or 357.97 points, to 18,412.81.
Accounting software firm Sage rose highest among the blue-chip index after a vote of confidence from JP Morgan, which upgraded its rating on the group, which serves to small and medium-sized businesses, to ‘overweight’ from ‘neutral’ and hiked the target price to 1100p from 860p.
It said Sage is ‘uniquely positioned’ to be at the forefront of software automation over the next decade and can grow revenue organically by at least 10pc through to 2025. It gained 5.1 per cent, or 44.6p to 918p.
There was also good news for Bridgepoint after Citi raised its target price on the private equity group, which owns Burger King in the UK, to 285p from 280p. Shares rose 6 per cent, or 11.7p, to 208.4p.
Stock Watch – AMTE Power
AMTE Power suffered a fresh setback after the Scottish battery cell maker warned it could put itself up for sale.
The group, whose lithium-ion and sodium-ion cells are used in electric vehicles and for energy storage, said shareholders could be wiped out if it fails to raise fresh funds within three weeks.
Amte had said it was running out of cash, and added that talks with potential investors continued.
It is now considering ‘all credible options’. It fell 20.2 per cent, or 1.14p, to 4.5p.
Investors in utility stocks held their nerves amid fears over the future of Thames Water.
Severn Trent rose 0.1 per cent, or 3p, to 2687p, Pennon Group was up 0.5 per cent, or 3.5p, to 740.5p and United Utilities by 0.2 per cent, or 1.5p, to 1004.5p.
But ProCook hit a record low after the cookware retailer bore the brunt of consumers tightening their belts.
The Gloucester family business said revenue fell 9.9 per cent to £62.3million in the year to April 2. It swung to a £6.5million loss, after a profit of £94,000 the year before amid lower sales, rising costs and investments into the firm.
Business has remained tough since the start of the new financial year, with revenues of £10.7million between April 3 and June 26 down 6.7 per cent on a year earlier, due to high inflation, soaring interest rates, warm weather and weaker trading in the homewares market.
Chief executive Daniel O’Neill, who founded the business with his mother Peggy in 1996, said: ‘This year the economic backdrop has been one of the toughest I have experienced in my career.’
He is also set to step down as the boss ‘at an appropriate point’. The shares, which floated at 145p in 2021, plummeted 14.3 per cent, or 3.75p, to 22.5p.
Elsewhere, Pod Point made gains after it landed a two-year deal to install electric vehicle charging points for Britain’s biggest homebuilder Barratt Developments.
The group, which develops charging bays for the likes of Tesco, Lidl and Center Parcs, has installed home charging infrastructure in more than 3,000 Barratt properties.
Pod Point fell 1.3 per cent, or 0.9p, to 67.1p as Barratt added 1 per cent, or 4.1p, to 419.5p.
