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SHARES TO WATCH



DSG

DSG International, which owns the electronic retail chains Dixons and Currys, has produced a comfortable return for those investors who bought the shares at a 140p low point last October.

However, further share price increases are unlikely and is it going to be more difficult in the future.

DSG last week reported annual profit that beat analysts' estimates after sales rebounded on demand for televisions ahead of the World Cup. The stock rose to the highest in almost four years.

Retailers such as DSG are benefiting as consumers upgrade to high-definition and flat-screen TVs ahead of the World Cup soccer tournament. Total sales AT DSG gained 6% in the fiscal year and climbed 8% in the final 24 weeks. The stock gained as much as 17.25p, or 8.9%, to 211.5p.

Royal & Sun Alliance

ROYAL & Sun Alliance reported a strong increase in operating profit for the first quarter, driven by improved underwriting at its international unit. Operating profit, including forecast investment returns, climbed to £207m (E303m) from £160m (E234m) for the same period last year. Chief executive Andy Haste said he will consider "bolt on" takeovers overseas amid stiff competition in the UK. It posted its first US profit in "several years" after selling assets to limit claims from hurricanes, asbestos illness and workers' compensation. The London-based insurer also cut its pension fund deficit. Royal & Sun has benefited hugely from its expansion in the emerging markets. Its continued drive into economies such as Mexico and China is likely to ensure its profits continue to grow.




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