STOCKS NEWS EUROPE-Dunelm higher after update

Shares in Dunelm (DNLM.L) gain 6.8 percent as the homewares retailer bucks sector gloom with better than expected second-half sales and profit margin growth, along with market share gains.

"Despite an additional investment in operating costs, we upgrade our full-year pretax profit forecast to reflect the better trading and, with the shares having come back over the last two months, we move our recommendation from "add" to "buy"," says Numis Securities in a note.

Investec Securities, meanwhile, lifts its recommendation on the stock to "buy" from "hold", while Seymour Pierce upgrades its rating on the company to "hold" from "sell".

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