This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The /This week’s FTSE100 winners and loser range from losses of almost 5% to gains of more than 15%.
First up is Flutter Entertainment (previously known as Paddy Power Betfair) which went crackers on Wednesday amid what is assumed as speculation of an approach to buy the company. The company has denied it, but the shares are holding gains of 15%.
Tobacco giants British American Tobacco (+9%) and Imperial Brands (+7%) benefited from the continued rally in bonds. This has served to depress yields, making defensive stocks like cigarette makers – especially with their generous dividend yields – more attractive.
Hargreaves Lansdown (+6.7%) appears to be recovering from the kicking it got amid the fallout from the issues as Woodford Investment management.
Lastly, Ocado (+6%) is faring well in the run-up to its results next Tuesday where the focus is likely to be the joint-venture with M&S.
At the tail end, all names lost 4-5%. Croda (-4.7%) was downgraded by analysts at UBS, to Neutral from Buy. The reason was potential headwinds at H1 results on 24 July. This means FY results will depend on second half strength.
The reason Persimmon (-4.5%) was weak after yesterday’s result was analysts at Peel Hunt being worried about Brexit. They feel this could scupper the company’s strategy, with focus on customer satisfaction hampering volumes.
BA-owner IAG (-4.5%) is actually up for the week once you factor in a chunky 9.7% dividend paid on Thursday. Lower oil prices also represent a benefit.
Lastly, Evraz (-4.2%) was hampered by the same issues as peer Anglo. Both were likely victims of profit taking after string gains of late.
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Enjoy a sunny weekend.
Mike van Dulken, Head of Research, 6 July 2019
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.Prepared by Michael van Dulken, Head of Research