SHARES in Currys owner DSG International leapt by more than a third yesterday after a City firm played down fears over the future of the retailer.
Credit Suisse cut its pre-tax profits forecast on the firm by 63 per cent but said the market had overreacted to concerns about the group's sustainability.
In a research note, Credit Suisse said it was likely DSG will reassure investors about its
financial position when it reports interim results on Thursday. DSG has seen its stock market value slump by around 85 per cent, but shares received a boost from the CS note as shares jumped to a high of 15.5p, closing 2.25p, or 20.9 per cent, higher at 13p.
The mood was also helped by reports that the government is considering measures to help companies affected by the industry-wide withdrawal of credit insurance to suppliers.
Stocks such as DSG have been rocked by the credit insurance fears, as well as further evidence of a downturn in demand for electrical goods among hard-pressed consumers.
Credit Suisse analysts said they expected DSG to report a 9 per cent decline in like-for-like sales in the current financial year.
In the UK, this could extend to a fall of 12 per cent for Currys and 11 per cent at PC World.
The full article contains 228 words and appears in The Scotsman newspaper.
