Market Overview: UK stock Market (2011, wk.14)

8/7/2019 Market Overview: UK stock Market (2011, wk.14)

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Market Overview: London Stock Exchange (FTSE100) 2011, wk. 14

Highlights:

FTSE100 index increased by 1%, reaching 6055.75 points.

The biggest losers: Centrica PLC -2.71% and Pearson PLC -2.2%.

The biggest gainers: Marks And Spencer Group PLC +7.24% and Antofagasta PLC

+6.17%

It was a positive week for the largest stock market in Europe - London Stock Exchange. The

FTSE100 index increased by 1%, from 6009.92 to 6055.75 points. The biggest gainers this week

were Marks And Spencer Group PLC and Antofagasta PLC with an increase +7.24% and

+6.17% respectively. Shares which lost the most of their value were Centrica PLC with -2.71%and Pearson PLC with -2.2%. The turnover for the week was about 4 billionEUR.

By having a look at the graph of FTSE100, we can see a W form development of the market. At the

beginning of the week, the market was facing a negative trend, but a rebound appeared on

Wednesday when retailers and banks came with a positive 4th quarter results. Theoretically, the

negative increase in ECB interest rate together with another strong earthquake in Japan was met

with pessimistic moods and the index declined again. However, the peak was reached on Friday as

it was the most successful day for investors. The most important factor was that the prices of raw

metals kept climbing up. This spiked the price of mining companies.

London Stock Exchange FTSE100 index performance during the week (04.04.11 08.04.11). Source: Financial times.

Marks And Spencer Group PLC was a company which was the most successful this week. It

experienced growth in share value by 7.24%, opening the week at 337.20 EURand closed it at

359.60 EUR. In the begging of the weekMarks And Spencer Group PLC experienced slight

increased as there were announcement that filial successors are a vanishing brood. However, the

1% share value increase on Monday was very small in comparison to rocket boom upward sloping

share value on Wednesday. On this day there was a couple of news that improved investors mood:

retailers face up to challenge of rising costs and M&S looks to shrug off commodities increases. For

1 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained init. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
http://www.ft.com/cms/s/97f3f5d4-6076-11e0-9fcb-00144feab49a.htmlhttp://www.ft.com/cms/s/79ed1d5a-607f-11e0-9fcb-00144feab49a.htmlhttp://www.ft.com/cms/s/97f3f5d4-6076-11e0-9fcb-00144feab49a.htmlhttp://www.ft.com/cms/s/79ed1d5a-607f-11e0-9fcb-00144feab49a.html


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the clothing and furniture company it was very important and made a big impact on the investors

reaction. After the announcement that senior Morrison executive defects to M&S there was a slight

decrease in Marks And Spencer Group PLC share valueon Thursday. The week ended with

small 0.76% increase on Friday. Overall, taking into consideration this week performance and

growing share value last days, we predict continuing growth next week.

Marks And Spencer Group PLCindex performance during the week (04.04.11 08.04.11). Source: Financial times.

Antofagasta PLC was the second most improving company this week. During the week, its

preference shares increased by 6.17%, reaching 1477 EUR. All over the week share value was

constantly increasing, except Thursday, when there were -1.29% decrease, mainly caused by the

news of Chinas copper stockpiles weigh on industry. As Antofagasta PLC is a Chilean-basedcopper mining group with interests in transport and water distribution which also operates in China,

these news made a strong impact on investors mood and index decreased. In conclusion, we can

see, that this industry has a nice prospects for future and continuing increase next week would be

most possible and logical scenario.

Antofagasta PLCindex performance during the week (04.04.11 08.04.11). Source: Financial times.



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The weeks biggest loser was Centrica PLC whose share value decreased by 2.71%. Centrica

PLC opened the week at 328.60 EURand closed it at 320.30 EUR. Centrica PLC is an integrated

energy company operating predominately in the UK and North America. While small increase in

share value on Monday was observed, during the next three days constant recession took place. This

is mainly caused by report, which shows that emissions reporting plan is set to be curved and the

news about co naught banks to take hit on loans. On Friday slight increase was observed again, as

Centrica PLC share value increased by 0.22%. This can be explained by constant energy prices

growing in the world. Conclusion: share price is heavily dependent on energy price growing in the

world and internal processes in the company. Therefore, we recommend be very careful with this

stock; notwithstanding growing energy prices, there are some internal problems in the company

right now and it is hard to predict, how it will respond on Centrica PLC share value.

Centrica PLCindex performance during the week (04.04.11 08.04.11). Source: Financial times.

The future is still very unclear for London stock exchange as well as for worlds stock markets. The

price of oil, gold and silver is going up, ECB raises interest rates and they are expected to rise more

in the future. These are the factors that should make a downward pressure on prices of stocks in the

long run. Also, rumor has it that investors are willing to take a shorting strategy on UK banks

which play a very important role in the stock market. However, stock prices are still below the pre-

crisis level and it should move towards equilibrium. It is hard to make any expectations for the

future as there are many different influential things happening in the world that obviously create a

question, which of them will be the most important ones.

Written by Adomas Aleksandraviius, Edgars Lelis, Laura Zauere


Documents

Market Overview: UK stock Market (2011, wk.14)