The Week UK - 28.03.2020

(Nandana) #1
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
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