Shares in UK retail group Marks and Spencer surged last week to top Saxo Market’s list of the best-performing stocks for the London Stock Exchange (LSE). Here is why the Marks and Spencer share price rose, as well as an overview of how you can invest in the company.
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Why did the Marks and Spencer share price rise?
According to Saxo Markets, the share price of clothing, food and home products retailer Marks and Spencer rose by a massive 25.05% last week, making the company the biggest gainer on the LSE. This follows a 14% increase in the company’s share price the previous week.
So why the sharp surge in the share price of Marks and Spencer? Well, it could be related to the release of a positive trading update by the company.
Marks and Spencer reported that its group revenue was up by 29.1% for the 19 weeks to 14 August compared with the same period last year. And it was up by 4.4% compared with the same period in 2019/2020. In a nutshell, the company’s revenues during this period have surpassed pre-pandemic levels.
The food division, in particular, has performed exceptionally well. Revenues from this segment in the mentioned period were up by 10.8% compared with last year and up by 9.6% compared with 2019/2020.
It would appear that the company’s revenue uptick has triggered positive investor sentiment. Investors seem to be very optimistic about the company’s future prospects, which may explain why the demand for its shares has been high in recent weeks.
What other stocks performed well last week?
Marks and Spencer was not the only gainer on the LSE last week. A few other stocks that nabbed decent gains include:
- S4 Capital – 12.75%
- Carnival – 11.30%
- Premier Foods – 10.64%
- Evraz – 10.33%
- Hammerson – 10.01%
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Can I buy shares in Marks and Spencer?
Marks and Spencer is a publicly-traded entity. So, you can buy its shares using a regular share dealing account. If you don’t have one already, we have reviewed some of the top providers of share dealing accounts in the UK to help you find one that is a good fit.
You also have the option of investing in Marks and Spencer through a stocks and shares ISA. The main advantage of a stocks and shares ISA is that it comes with a tax wrapper that protects your investment growth and income from tax.
As with any other investment, remember that past performance does not dictate future results. Marks and Spencer might currently be performing well, but you can never be sure what will happen in the future. Keep this in mind as you plan your investments and seek professional advice if necessary.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
