A stark split of opinion has emerged in the City over the prospects for WH Smith.

As the newsagent group updated the market on what looks like solid full-year trading this week, all but one of the brokers covering the stock had buy or overweight recommendations according to data from The Grocer.

However, over recent weeks short-selling in WH Smith has risen to 11.4% of the company’s shares, according to publicly disclosed records - the highest on the entire FTSE, and WH Smith’s highest level since August 2013.

Short-sellers may have felt more queasy on Thursday as the newsagents announced it was on course to meet City expectations when it announces full-year results in October, after improving margins despite falling sales. Analysts are expecting full-year pre-tax profits of £113m and earnings per share growth of 8% for the year to 31 August 2014.

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The shares have risen 37% over the past year and Investec analysts this week predicted further improvements in fourth quarter could even result in positive full-year travel like-for-like revenues for the first time since 2008. WH Smith opened higher on Thursday’s market update but slid 0.9% to 1,112p by mid-morning.

Imperial Tobacco shares jumped 2.1% on Tuesday to 2,578p after issuing an upbeat interim management statement. Updating the market on trading over the first nine months, Imperial said reported revenues and cigarette volumes were down 1%, but it was still on target for modest full-year earnings growth on a constant currency basis and plans to pay an increased dividend. The shares remained up through the week, trading at 2,590p on Thursday morning.

The start of the week was not as kind to Tesco, which fell by 2.5% in early trading on Monday to 244p after widespread media speculation over an imminent cut in dividend once Dave Lewis takes over in October. The supermarket staged a minor recovery through the week, rising back to 246.5p on Thursday.

Chiquita may have reaffirmed its commitment to push ahead with its proposed merger with Fyffes, but the market seems less convinced. Fyffes was still languishing at 74.7p on Thursday morning London today to 76p, having traded at 88p prior to the news breaking of rival bidders for Chiquita last week as the market braces itself for the bidders to return with an improved offer.