The Week - UK (2020-09-12)

Shares CITY 51

12 September 2020 THE WEEK

Aviva
TheSundayTelegraph
Stronghopesaboundforthe
insurancegiantundernewboss
AmandaBlanc.Givendecent
digitalcapabilityandastrong
balancesheet,sheaimsto
boostperformanceinBritain,
IrelandandCanada.Yields
7%.Buy.273.6p.

GreshamHouseEnergy
StorageFund
TheTimes
Thisgreenenergyfundhopes
toharnesstheswingsinpower
priceswithmassivestorage.It
hasovercometechnicalissues
andisexpandingfast.Risky,
butistheUK’sbiggestplayer
andyieldsover6%.Buy.114p.

InspecsGroup

Shares

Inspecsdesignsandmakes

spectacleframes.Ithasabroad

globaldistributionplatform

andlicensingdealswithfashion

brandssuchasSuperdryand

O’Neill.It’sincreasing

manufacturingcapacityto

boostmargins.Buy.229.6p.

JohnsonServiceGroup

InvestorsChronicle

Thetextilerentalandcleaning

specialistwashithardby

theclosureofhotelsand

restaurants.Butitsservices

areessential,volumesare

recoveringasrestrictionsease,

anditcouldgrowmarketshare

withacquisitions.Buy.1 08 p.

Kingfisher

TheDailyTelegraph

TheDIYchainistransforming

itselfbyinvestingindelivery

logisticsande-commerce,

andimprovingitsabilityto

adapttolocaltastes.Aweak

economicoutlookisworrying,

butitisfinanciallysoundwith

goodprospects.Buy.270.3p.

PernodRicard

TheTimes

TheFrenchdrinksgroup,

whosebrandsincludeAbsolut,

Martell,ChivasRegaland

Jacob’sCreek,isholding

ontoorgainingmarketshare

initstopterritoriesasitfocuses

oncostsavingsandimproving

margins.Buy.s 14 5.05.

Who’s tipping what

Theweek’sbest shares

...and some to hold, avoid or sell

Amazon
The DailyTelegraph
Sharesin theonlin eretail and
cloudcomputing behemoth
have soared–up89% from
$1,845 lastMay. It remains
a“greatbusiness”, but there
are better opportunitiesfor
growthelsewhere.Take profi ts.
Sell. $3,491.06.

B&MEuropean ValueRetail
The SundayTimes
The discountreta iler has
emerged asaCovid-19 winner:
shares have rocketed.It aims
to increase thenumber of UK
stores from 650to 950 and
expand overseas.But it does
not sell onlineand shares
aren’tcheap.Hold. 459.9p.

JSainsbury

Investors Chronicle

The supermarket group,which

has 1,400UKoutlets, faces

downward pressure on margins

from e-commerce andahit

to non-foodsales. Its bank

businessis struggling,debtis

highand there’s risingshort

interest.Sell. 186p.

OxfordBiomedica

The Times

The cell and genetherapy

specialist’s corebusiness should

benefit fromits vaccineproduc-

tion role with AstraZeneca,

by returningthisnewcomer to

the FTSE250tothe blackand

boostingits manufacturing

scale. Hold. 860p.

Scottish Mortgage

Investment Trust

TheTimes

Tech stocksanddigital

healthcare disruptersare the

engine for this investment trust.

Shareshave slippedincurrent

volatility,butperformance “far

outpaces” itsbenchmark.

Hold.907.5p.

Zoom Video

Communications

TheTimes

The vide oconferencer’s Q2

revenues havejumped355%

as it convertsmore freeusers

into payers.Shares areup

500% thisyear, butusage may

fluctuatewith evolving work

habits. Avoid. $399.91.

Directors’ dealings

Trainline

CEOClareGilmartinhas

pocketed£3.2m,ayearafter

theticketing-platformlisted.

Althoughonlyreducingher

stakefrom 1 .8%to1.6%,the

salewilldolittletoinstil

investorconfidenceamidlow

passengernumbers.

Form guide

Sharestipped 12 weeksago

Besttip

UltraElectronics

TheSundayTelegraph

up 23.17% to £24.56

Worst tip

DFS Furniture

Investors Chronicle

down 26.55% to 130p

Marketview

“Aftermonthsofgains,and

withaneconomicrecovery

thatlookslikeitisstalling,

investorswillbeasking,‘is

thatit?’.Hastherallycometo

anend,andisthenextbigleg

downuponus?”

ChrisBeauchampoftrading

platformIG.Quotedin

CityAM

SOURCE

:INVESTORS CHRONICLE

Market summary

6-monthmovement in the FTSE100index

8Sep 2020 Week before Change (%)

FTSE 100 5930.30 5862.05 1.16%

FTSE All-share UK 3322.13 3290.81 0.95%

Dow Jones 27639.02 28497.84 –3.01%

NASDAQ 11001.47 11874.52 –7.35%

Nikkei 225 23274.13 23138.07 0.59%

Hang Seng 24624.34 25184.85 –2.23%

Gold 1928.45 1957.35 –1.48%

Brent Crude Oil 39.99 45.90 –12.88%

DIVIDEND YIELD(FTSE 100) 3.67% 3.71%

UK 10-year gilts yield 0.19 0.29

US 10-year Treasuries 0.67 0.69

UK ECONOMIC DATA

Latest CPI (yoy) 1.0% (Jul) 0.6% (Jun)

1.1% (Jun)

3.8% (Jul)

Latest RPI (yoy) 1.6% (Jul)

Halifax house price (yoy) 5.2% (Aug)

£1 STERLING $1.275 E1.083 ¥135.167

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Melrose Industries 119.00 +24.63

Smith (DS) 294.80 +16.66

ITV 64.46 +12.97

JD Sports Fashion 795.80 +11.96

Hikma Pharm. 2594.00 +11.43

FALLS

Scottish Mortgage 885.00 –8.48

Ocado Group 2349.00 –6.26

Flutter Entertainment 11350.00 –5.85

Aveva Group 4837.00 –4.29

Intermediate Cap. Gp. 1270.00 –4.08

BEST AND WORST UK STOCKS OVERALL

Vela Technologies 0.11 +126.31

Phimedix 1.00 –77.78

Source: Datastream (not adjusted for dividends). Prices on8Sep (pm)

200

Apr May Jun Jul Aug Sep

300

400

500

CEO sells

800,000

4,500

7,000

Apr May Jun Jul Aug Sep

5,500

6,500

6,000

5,000