The Week - UK (2022-05-07)

Shares CITY 47

7 May 2022 THE WEEK

Inchcape
The Times
Supply-chain problems have
pushed new car volumes
below the 2019 figure, but the
global dealer’s orders are at
record levels due to demand
for affluent marques such as
BMW and Porsche. Profits
are expected to jump 25%.
Buy. 708.5p.

Jubilee Metals Group
The Mail on Sunday
Jubilee turns mining waste into
chrome and platinum (used in
catalytic converters to reduce
car pollution), while working
to reduce carbon footprints.
Expanding geographically,
and into copper. Buy. 15.2p.

Marks Electrical Group

The Sunday Times

Shares in the high-margin,

pricey ovens-to-fridges retailer

have drifted down since its

November listing. But its free

next-day delivery promise is

attractive. Set for expansion

and run by an expert. Buy. 91p.

Rightmove

The Daily Telegraph

The property search platform

provides tools for agents to

win new listings in a

competitive housing market

that shows little sign of

slowing. Richly valued, but

debt-free. An innovative

market leader with sticky

customers. Buy. 608.2p.

SDCL Energy Efficiency

Income Trust

The Mail on Sunday

SEEIT’s £1bn portfolio is

invested in assets promoting

business energy efficiency –

solar panels for Tesco, EV

chargers for BP, biomass

facilities and generators. A top

player, yielding 5%. Buy. 122p.

Whitbread

The Times

Whitbread – whose assets

include Premier Inn hotels

and Beefeater eateries – has

performed well post-Covid.

Demand is strong, split

evenly between business and

leisure, and it has resumed

dividends. Buy. £27.57.

Who’s tipping what

The week’s best shares

...and some to hold, avoid or sell

Associated British Foods
Investors’ Chronicle
Primark sales have surged
post-lockdown, especially in
the US, and there’s a strong
pipeline of new stores. But
ABF has warned that cost
inflation in its grocery business
will certainly impact margins.
Hold. £15.47.

Churchill China
Investors’ Chronicle
Soaring demand, following
the reopening of hospitality at
home and abroad, has boosted
the ceramics-maker’s top line.
But there are productivity
issues, and margins may be
squeezed in the push for
market share. Hold. £14.65.

Currys

The Times

Down from its pandemic

high, the electrical retailer

is mid-turnaround with hopes

of boosting margins and

cashflow. But shares are heavily

shorted, amid inflationary

pressures and falling real

incomes. Avoid. 94.35p.

GB Group

The Daily Telegraph

The cybersecurity specialist

has gained 150% in five years.

Rivals are struggling with

macroeconomic challenges,

but GB’s premium-rated

shares offer little room for

unexpected disappointments.

Take profits. Sell. 604p.

Rank Group

The Times

The operator of Mecca Bingo

and Grosvenor Casinos has

been hit by work-from-home,

a dearth of tourists and the

rise of upstart competitors.

The squeeze on discretionary

spending isn’t easing anytime

soon. Sell. 109.75p.

Smith & Nephew

The Sunday Telegraph

S&N, which majors on

orthopaedics, wound care and

sports medicine, is gathering

momentum. Higher volumes,

as hip and knee replacements

normalise, should deliver 21%

margins. Trading at a discount

to US rivals. Hold. £13.03.

Directors’ dealings

Hilton Food Group

The meat-packing firm is

diversifying into salmon and

vegetarian/vegan products.

Panmure Gordon expects

strong demand. Shares have

rebounded, but chair Robert

Watson has slimmed his stake,

selling £2.4m worth of stock.

Form guide

Shares tipped 12 weeks ago

Best tip

AG Barr

The Times

up 16.36% to 576p

Worst tip

ProCook Group

The Sunday Times

down 23.03% to 117p

Market view

“I have to throw in the towel.

The long bull market run in

bonds has come to an end.”

Scott Minerd of Guggenheim

Partners warns interest

rates could “trend higher

for a generation”. Quoted

in the FT

SOURCE: INVESTORS’ CHRONICLE

Market summary

6-month movement in the FTSE 100 index

3 May 2022 Week before Change (%)

FTSE 100 7561.33 7386.19 2.37%

FTSE All-share UK 4186.77 4105.76 1.97%

Dow Jones 33256.70 33461.71 –0.61%

NASDAQ 12583.87 12579.33 0.04%

Nikkei 225 26818.53 26700.11 0.44%

Hang Seng 21101.89 19934.71 5.86%

Gold 1911.30 1895.00 0.86%

Brent Crude Oil 106.20 104.85 1.29%

DIVIDEND YIELD (FTSE 100) 3.59% 3.65%

UK 10-year gilts yield 1.96 1.80

US 10-year Treasuries 2.93 2.74

UK ECONOMIC DATA

Latest CPI (yoy) 7.0% (Mar) 6.2% (Feb)

8.2% (Feb)

10.8% (Feb)

Latest RPI (yoy) 9.0% (Mar)

Halifax house price (yoy) 11.0% (Mar)

£1 STERLING: $1.250 s1.188 ¥162.674 Bitcoin $38,468

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

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price % change

Standard Chartered 566.00 +17.33

BP 414.25 +9.17

HSBC Holdings 512.80 +8.22

Anglo American 3580.00 +8.11

Smurfit Kappa Gp. (Lon) 3420.00 +5.98

FALLS

Segro 1204.00 –11.54

Hikma Pharmaceuticals 1890.00 –5.74

Aveva Group 2164.00 –5.42

Avast 531.60 –5.24

Howden Joinery Group 724.60 –5.21

FTSE 250 RISER & FALLER

Johnson Matthey 2225.00 +22.80

DiscoverIE Group 715.00 –12.80

Source: Datastream/FT (not adjusted for dividends). Prices on 3 May

7,000

7,500

7,700

7,400

7,600

7,300

7,200

7,100

Nov Dec Jan Feb Mar Apr May

1,150

1,200

1,250

Nov Dec Feb Mar Apr May

1,100

1,050

Jan

Director

sells 200,000