The Week UK - 28.03.2020

Shares CITY 51

28 March 2020 THE WEEK

AvonRubber
InvestorsChronicle
Thisdefensivebusinessmakes
personalprotectiongearfor
themilitary.Operatingina
nichemarketwithlimited
competition,ithasastrong
balancesheetandbenefitsfrom
highmarginsandpricing
power.Buy.£19.70.

BarrattDevelopments
TheSundayTimes
Covid- 19 fearshaveseenthe
bighousebuilders’shares
plummetby 50 %.ButBarratt,
whichcompleted17,856
homeslastyear,focuseson
qualityandhasadecentcash
pile.Shouldbe“safeas
houses”.Buy.408.2p.

Boku

TheMailonSunday

Bokuenablesmusic,games,

moviesandappstobebought

onmobiledevicesviatheuser’s

phonebill.Some 190

networks,includingEEand

O2,useitstechnology,which

hasenticedApple,Google,

SpotifyandNetflixtosign

deals.Buy. 59p.

HSBC

TheShareCentre

Sharesinthebankareata

nearfour-yearlow.ButHSBC

issellingassetsandcutting

coststofocusonorganic

growthinAsia,where80%of

profitisderived.Yields8.4%.

Buy.484.85p.

InternationalBiotechnology

Trust

Shares

Thisinvestmenttrust’s

portfolioisdiversifiedacross

cancer,rarediseasesand

centralnervoussystemdrugs.

Runbyanexperiencedteam,it

offersincomeandgrowth.An

“absolutebargain”.Buy.457p.

Tesco

Shares

Thankstoextensivesupply

chains,Tescoiswellsetto

see-offdiscountersandcope

withademandsurge.Salesand

marginsareimprovingand

capexonstoresisfallingasit

expandsinto“foodtogo”

logistics.Buy.214.5p.

Who’s tipping what

Theweek’sbest shares

...and some to hold, avoid or sell

Go-Ahead Group
InvestorsChronicle
Sharesint he transport
provider have slumpedby
abou tathir d: costsint he bus
arm have outpaced growth and
rail profits are£2.9 mdown.
Virus-relatedtravel restrictions
will hold back international
growth. Sell.£11.37.

Great PortlandEstates
The Sunday Telegraph
Demandforoffice and retail
space may weaken,butthis
commercial property business
haslow debtandaWest End
focusprovides resilience. A
propertypricefallcould offer
attractive investment
opportunities. Hold.599.60p.

GVCHoldings

TheTimes

The gaminggroup,whichhas

3,000 high-street bookmakers,

has expandedaggressively

–acquiring LadbrokesCoral

and Bwin .Profits willsuffer

from cancelled sporting events

and moreif bookmakersclos e.

Avoid. 325p.

Mitchells&Butlers

The Daily Telegraph

The outlookis bleakforpub

groupsas their income is

clobbered by enforcedclos ures.

But M&B’s£1.6bnofdebtis

mitigated by £4.9bn of

propertyassets, andshares

havefared betterthanpeers.

Hold.140.4p.

Team17 Group

TheMail onSunday

The vide ogames-maker is

aheadthis year:sales rose

43%andprofits soared

121% thanks to the “highly

popular”Wormsand

Overcookedseries. Tempting

to bank profits, but the

outlook is strong. Hold.470p.

Trainline

InvestorsChronicle

The online ticketing fir mhas

seen aslowdown in revenues,

andthe pandemic lookscertain

to hamstringinter national

growth prospects. There are

worries overthesustainability

of itscompetitive advantage.

Sell. 229.5p.

Directors’ dealings

Domino’sPizza

Non-executivedirectorUsman

Nabi’shedgefund,Browning

WestLP,hasnabbedan8.94%

holdinginthepizzagroupfor

£14.6m.“Sweepingchange”is

afootinboththeboardroom

andoperationsasthefirm

exitsoverseasmarkets.

Form guide

Sharestipped 12 weeksago

Best tip

Shanta Gold

The Mail on Sunday

up 20.16% to 10.79p

Worst tip

Lok’nStore Group

Investors Chronicle

down 41.54% to 380p

Market view

“Overall, the response is

broader and bigger than

during the financialcrisis...

If you look at what the Fed

has done, it’s incredible.”

Kit Juckes of Société

Générale, ona“Herc ulean”

stimulus. Quoted in the FT

SOURCE: INVESTORS CHRONICLE

Market summary

6-monthmovement in the FTSE100index

24 Mar 2020 Week before Change (%)

FTSE 100 5446.01 5294.90 2.85%

FTSE All-share UK 2969.58 2894.32 2.60%

Dow Jones 20246.59 20933.90 –3.28%

NASDAQ 7323.07 7280.50 0.58%

Nikkei 225 18092.35 17011.53 6.35%

Hang Seng 22663.49 23263.73 –2.58%

Gold 1525.40 1487.70 2.53%

Brent Crude Oil 27.34 29.53 –7.42%

DIVIDEND YIELD(FTSE 100) 6.26% 6.28%

UK 10-year gilts yield 0.47 0.56

US 10-year Treasuries 0.88 0.89

UK ECONOMIC DATA

Latest CPI (yoy) 1.7% (Feb) 1.8% (Jan)

2.7% (Jan)

+4.1% (Jan)

Latest RPI (yoy) 2.5% (Feb)

Halifax house price (yoy) +2.8% (Feb)

£1 STERLING $1.174 E1.082 ¥130.614

Key numbers for investors Best and worst performing shares Following the Footsie

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

M&G 139.00 +37.22

Royal Dutch Shell B 1312.20 +27.87

JD Sports Fashion 432.10 +26.23

Royal Dutch Shell A 1357.20 +25.67

Flutter Entertainment 7096.00 +24.45

FALLS

Melrose Industries 103.35 –19.13

Severn Trent 2085.00 –14.48

Rightmove 433.70 –13.91

Hargreaves Lansdown 1265.00 –12.73

Associated Brit. Foods 1607.50 –11.38

BEST AND WORST UK STOCKS OVERALL

Gfinity 0.95 +192.31

British Honey Company 112.50 –90.00

Source: Refinitiv (not adjusted for dividends). Prices on 24 Mar (pm)

4,000

Oct Nov Dec Jan Feb Mar

6,000

5,000

8,000

7,000

Oct Nov Dec Jan Feb Mar

300

320

260

280 Director’s

hedge fund

buys 4.7m