Market Overview: UK stock Market (2011, wk.15)

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  • 8/7/2019 Market Overview: UK stock Market (2011, wk.15)

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    Market Overview: London Stock Exchange (FTSE) 2011, wk. 15

    Highlights:

    During the weak FTSE100 index decreased by 1,13%;

    The biggest winners were Marks & Spencer Group PLC (MKS.L) with +5,19% and Next

    PLC (NXT.L) with +5,06;

    The biggest losers were Antofagasta PLC (ANTO.L) with 7,67% and Kazakhmys PLC

    (KAZ.L) with - 8,61%.

    Week 15 can not be considered as very successful for London Stock Market, since the FTSE100

    index decreased by 1,13%, from 6055.75 points to 5996.01 points. The biggest gainer in week 15

    (as it was also in week 14) was Marks & Spencer Group PLC (MKS.L), with + 5,19%, the second

    place this week went to Next PLC (NXT.L), with +5.06%. Previous week's second place gainerAntofagasta PLC (ANTO.L) this week suffered a large decrease in share price and even turned out

    to be the second biggest looser this week, with 7,67%. The biggest looser was Kazakhmys PLC

    (KAZ.L) with - 8,61%. In the end of the week the index value went down due to expectations of

    decreasing demand for metal in China. These expectations arose because oftightening monetary

    policy in China.

    Performance of FTSE100 index during the week 15 (11.04.11 15.04.11), source: yahoo finance

    The most successful company the second week in a row was Marks & Spencer Group PLC. It

    experienced 5,19% increase in share value. Moreover, the share value this

    week was going up gradually, without any serious decreases. At the end of the

    previous week various actions happened, which improved investors attitude

    towards Marks & Spencer Group. Due to these happenings, share value of the

    company was rising gradually day by day reaching the price of 423,09 EUR.During this week no other serious impacts on share price were experienced.

    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.

  • 8/7/2019 Market Overview: UK stock Market (2011, wk.15)

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    Market Overview: London Stock Exchange (FTSE) 2011, wk. 15

    Performance of Marks & Spenser during the week 15 (11.04.11 15.04.11), source: yahoo

    finance

    The second most successful company was also cloths company Next PLC, with +5,06 increase in

    price per share. During the week price per share was increasing gradually, eventually reaching the

    price of 2490,16EUR. This can be explained with rather small impact of politic and economicactions on clothes market. For instance, Japanese earthquake's consequences and Chinese tightening

    monetary policy has a very small effect on clothes market, since there there are not so many export

    of clothes to these counties.

    2 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.

  • 8/7/2019 Market Overview: UK stock Market (2011, wk.15)

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    Market Overview: London Stock Exchange (FTSE) 2011, wk. 15

    Performance of Next PLC during the week 15 (11.04.11 15.04.11), source: yahoo finance

    It was interesting that previous week's second most successful company Antofagasta PLC turned

    out to be second worst this week, with -7,67% decrease in price per share. Since this company

    operates also in China, expectations of tightening monetary policy in this country reduced demand

    for Antofagasta PLC production. Also the bad performance can be explained with the

    consequences of Japan's last earthquake previous week. The consequences of it appeared only this

    week.

    Performance of Next PLC during the week 15 (11.04.11 15.04.11), source: yahoo finance

    The future is still rather unclear. Demand decrease in main export countries along with negative

    investors attitude towards London' banks can possibly cause a decrease in stock prices. However,

    the fact that prices are still moving away from the pre-crisis equilibrium means that later or sooner

    prices should go up in order to reach the equilibrium. We predict that during the next week there

    will not be any sharp decrease or increase. The movement towards equilibrium will take place

    smoothly.

    Review by: Adomas Aleksandraviius, Edgars Lelis, Laura Zauere

    3 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.