The Week - UK (2022-02-19)

CITY 43

3,000

3,500

2,750

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3,250

Sep Oct Nov Dec Jan Feb

2,500

2,250

4,000

Shares

19 February 2022 THEWEEK

B&MEuropean ValueRetail
TheTimes
Thediscount retailer buys
“narrowbutdeep”–fewer
products inhigher volumes

• to combat costpressures.
  Highly cash-generativewith
  apotential7.3%yield.
  Buy.557.4p.

Barratt Developments
TheTimes
Housebuildersfacerising
interestrates,supply-chain
disruption, build-costinflation
andcladdingconcerns.But
demand forBarratt homes
remains strongand higher
volumes shouldboostmargins.
Potential 8.1%yield.
Buy.633p.

BP

TheMailonSunday

Theenergy giantiscontinuing

its greentransition(boosted

byprofitsfrom“dirtybrown

fuels”),investingin renewables,

EV chargers,andcarbon

capture and storage. Shares

lookcheap,dividendsrobust.

Yields 3 .7%.Buy.417p.

DunelmGroup

Investors’Chronicle

Strengthened marketshare and

afocuson “value”should

standtheretailer, whichhas

175 shops andanimproved

onlinepresence, ingoodstead

ashouseholdbudgets are

squeezed. Profits arerising.

Buy.£12.85.

Fuller Smith&Turner

TheDailyTelegraph

The pub grouphasawell-

tended estatein primesites

inLondonand theSoutheast.

Punishedbylockdowns,staff

shortages and risinginput

costs,butbusinessshould

recover stronglyas commuters

andtouristsreturn. Buy. 662p.

Syncona

TheSundayTimes

Thisearly-stage science

investment trustmajorson

gene therapiestocombat eye

cancerand blindness,and cell

therapies totreatimmune

system diseases.Worth apunt

on possible blockbustercures.

Buy.187.4p.

Who’stippingwhat

Theweek’sbestshares

...andsometohold,avoidorsell

Amazon
Investors’Chronicle
Amazon WebServiceshas
maintainedits market-leading
position in cloudservices amid
mounting competition. But
tightretailmargins and ajump
in operatingcosts (shipping
andwages) couldhurtthe
wider business. Sell. $3,159.

JD SportsFashion
TheDailyTelegraph
Surging inflation in the UK,US
andEuropethreatensdiscre-
tionaryspending –and the
retailer facesfurther headwinds
fromrising staff costsand
disrupted supplychains. Shares
have doubledsince2017: take
profits. Sell. 179.05p.

MicroFocusInternational

Investors’Chronicle

The software andconsultancy

firm is stillstruggling with its

“disastrous” acquisitionof

HewlettPackard’s software

arm. Debtis high and profits

down,but cash generation is

improving andshares tradeat

a36% discount. Hold.453.3p.

Novacyt

TheTimes

Demand forlucrative

PCR contractsisset to fall

drastically this year, yet detail

on thediagnosticsgroup’s

non-Covidproducts is thin.

Numishascut revenue

forecasts by more than a

third. Avoid. 160.95p.

Ocado Group

TheSundayTelegraph

Shares have collapsed in line

with theabating appetite for

online-focusedstocks. Yet

Ocado’s £1.5bn cash pile

bodeswell for tech and

investment. Partnershipdeals

in theUS, Japan and Europe

are promising. Hold. £12.94.

Restore

TheDailyTelegraph

Recoveryiswell under way

atthe document manager,

thanks to eightacquisitions in

2021 andimprovingorganic

momentum. Thereturnto

the officeshouldboostits

relocationandrecycling

divisions.Hold. 468.5p.

Directors’dealings

Asos

Co-founderNick Robertson

hassold£10mworth ofshares

in thee-commercefashion

retailer which,although

well-established,faces

expansionheadwinds.Shares

soaredin lockdown,thenfell

amidshrinkingmargins.

Formguide

Sharestipped 12 weeksago

Besttip

BP Group

TheSundayTelegraph

up13.69%to 398.15p

Worsttip

DriverGroup

Investors’Chronicle

down21.82%to 43p

Marketview

”Themarkethas

wokenuptotherisk.

Thechallengeis thatit’s

veryhardtoassess.”

Jon Adamsof BMOGlobal

AssetManagementon the

Ukrainestand-off.Quoted

in The WallStreetJournal

SOURCE:

INVESTORS’

CHRONICLE

Directorsells

450,000

Marketsummary

6-monthmovementin theFTSE100index

15 Feb 2022 Weekbefore Change(%)

FTSE 100 7608.92 7567.07 0.55%

FTSEAll-shareUK 4254.78 4233.62 0.50%

Dow Jones 35013.66 35400.76 –1.09%

NASDAQ 14082.13 14140.73 –0.41%

Nikkei 225 26865.19 27284.52 –1.54%

HangSeng 24355.71 24329.49 0.11%

Gold 1866.15 1813.55 2.90%

BrentCrudeOil 93.38 90.88 2.75%

DIVIDENDYIELD(FTSE100) 3.29% 3.23%

UK 10-yeargiltsyield 1.50 1.41

US 10-yearTreasuries 2.03 1.96

UK ECONOMICDATA

LatestCPI (yoy) 5.5%(Jan) 5.4%(Dec)

7.5%(Dec)

9.8%(Dec)

LatestRPI (yoy) 7.8%(Jan)

Halifax houseprice(yoy) 9.7%(Jan)

£1 STERLING:$1.356 s1.190 ¥156.930 Bitcoin$44,190

Key numbersKey numbers forinvestorsfor investors BestBestand worstand worst perforperformingming sharesshares Followingthe Footsie

WEEK’SCHANGE,FTSE100 STOCKS

RISES Price %change

Antofagasta 1385.50 +11.60

Informa 624.00 +11.30

OcadoGroup 1363.00 +11.30

AstraZeneca 8865.00 +7.00

ITV 122.65 +6.80

FALLS

Evraz 330.60 –28.30

JD SportsFashion 168.85 –5.70

AvevaGroup 2733.00 –3.90

Barclays 198.46 –3.80

Prudential 1207.00 –3.40

FTSE250 RISER&FALLER

CineworldGroup 41.28 +12.90

Synthomer 311.80 –9.50

Source:FT(notadjustedfordividends).Priceson15 Feb(pm)

7,100

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Sep Oct Nov Dec Jan

7,600

Feb