The Week - UK (2021-07-17)

Shares CITY 49

17 July 2021 THE WEEK

Diageo
TheDailyTelegraph
Diageo’spremiumspiritshave
cross-generationalappeal
globally.Cash-generative,and
inastrongpositiontoraise
pricesshouldcostsrise.It
shouldbenefitfrom“any
possibleroaringTwenties”.
Buy.£34.34.

DunelmGroup
TheSundayTelegraph
Thiswell-managedhomewares
firmshowed“realleadership”
inthepandemic,boostingstaff
performance.Having“utterly
embraced”themovetodigital
tech(salesjumpedby59%),
investmentcontinues.
Buy.£14.21.

Helical

TheTimes

Thisretailestateinvestment

trustdevelopsandletsoffices

inLondon.Althoughthe

extentofthereturntooffices

isuncertain,rentcollection

rateshaveprovedrobust.

Thediscounttosharesis

toosevere.Buy.438.50p

PageGroup

TheTimes

Acceleratinghiringactivity

hasdriventherecruiterto

raiseprofitguidance.Highly

cash-generative,andpushing

intoGermany,India,Brazil

andChina.Apotential2.9%

yield,excludingspecial

dividends.Buy.592.5p.

Porvair

InvestorsChronicle

Thefiltrationspecialist’s

profits haveclimbed4%

thankstoproductivity-

improvingacquisitionsand

investments.Rebounding

aerospacedemandand

environmentalregulation

shoulddrivegrowth.

Buy.578p.

Spirax-Sarco

TheDailyTelegraph

This“world-class”steam

engineerhasanearmonopoly

ofspecialistservices:from

foodsterilisationtopower

generation.Cash-generative

andwellplacedtobenefitfrom

inflation.Buy.£138.05.

Who’s tipping what

Theweek’sbest shares

...and some to hold, avoid or sell

AO World
Investors Chronicle
The online electrical goods
retailer was boosted as
customers upgraded to meet
remote working and enter-
tainment needs. But investment
in marketing and digital
content is needed to sustain
momentum. Hold. 245p.

Clinigen Group
The Sunday Times
This speciality medicine
provider has issuedashock
profit warning after demand
for akidney-cancer drug
proved weaker than expected.
Shares are down 20.6%, but a
private equity bid may emerge.
Hold. 619.5p.

Ocado Group

Investors Chronicle

The online grocer has gained

22% more active customers,

but it’s too early to say if

changing shopping habits have

become entrenched. Despite

its tech prowess, Ocado

remainsa“work in progress”.

Hold. £20.25.

Persimmon

The Times

The stamp duty break

boosted demand and lifted

prices for the housebuilder.

Material costs are rising as

sales prices ease, but this

“dividend king” hasalarge

land bank and yields over 8%.

Hold. £29.23.

Purplebricks Group

The Times

The online estate agency is still

being punished for its costly

expansion and subsequent

retreat from overseas markets.

Aiming to double market share

–but marketing costs will

squeeze near-term profits.

Hold. 81.6p.

RM

Investors Chronicle

Closures and cancelled exams

saw schools up spending on

outdoor teaching and student

well-being, to the benefit of

this educational resource

provider. The pension has

moved from debt to surplus.

Hold. 249p.

Directors’ dealings

CardFactory

NewCEODarcyWillson-

Rymerhashooveredup

£50,000-worthofsharesinthe

greetingscardretailer.Store

closureshaveravagedsales,

butithasrelaunchedonline

andsalesshouldimproveas

normalfestivitiesresume.

Form guide

Sharestipped 12 weeksago

Best tip

Croda International

The Times

up 16.95% to £77.02

Worst tip

Ricardo

The Mail on Sunday

down 10.93% to 387.44p

Market view

“It looks like optimism over a

sharp global recovery has

been replaced by mild fears

that growth is nearingapeak.”

Fawad Razaqzada of Think-

Markets on worries about the

spread of the Delta variant.

Quoted in The Guardian

SOURCE

:INVESTORS CHRONICLE

Market summary

6-monthmovement in the FTSE100index

13 July 2021 Week before Change (%)

FTSE 100 7124.72 7100.88 0.34%

FTSE All-share UK 4071.21 4060.82 0.26%

Dow Jones 34979.65 34454.40 1.52%

NASDAQ 14802.44 14613.27 1.29%

Nikkei 225 28718.24 28643.21 0.26%

Hang Seng 27963.41 28072.86 –0.39%

Gold 1792.40 1791.35 0.06%

Brent Crude Oil 76.40 74.44 2.63%

DIVIDEND YIELD(FTSE 100) 2.96% 2.97%

UK 10-year gilts yield 0.63 0.63

US 10-year Treasuries 1.36 1.37

UK ECONOMIC DATA

Latest CPI (yoy) 2.5% (Jun) 2.1% (May)

3.3% (May)

9.5% (May)

Latest RPI (yoy) 3.9% (Jun)

Halifax house price (yoy) 8.8% (Jun)

£1 STERLING $1.385 E1.174 ¥153.029

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Bunzl 2613.00 +6.44

Ashtead Group 5708.00 +5.39

BHP Group 2246.50 +5.30

Experian 3023.00 +5.11

Severn Trent 2708.00 +4.52

FALLS

Rolls-Royce Holdings 93.61 –9.70

Flutter Entertainment 12505.00 –8.25

Whitbread 2981.00 –7.48

Associated Brit. Foods 2093.00 –7.35

Intl. Cons. Airl. Gp. 173.02 –7.24

FTSE 250 RISER&FALLER

Vectura Group 154.60 +13.70

Cineworld Group 68.26 –19.10

Source: Datastream&FT(not adjusted for dividends). Prices on 13 July(pm)

6,400

7,200

6,600

6,800

7,000

Feb Mar Apr May Jun Jul

100

Feb Mar Apr May Jun Jul

80

60

40

Director

buys 84,112