MO London Week 16

8/7/2019 MO London Week 16

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Market Overview: London Stock Exchange 2011, wk. 16

Xstrata PLC (XTA.L), which is a major global diversified mining group, was the second most

improving company this week. During the week, its preference shares increased by 5.05%,

reaching 1550 EUR. In the beginning of the week, there was quite considerable decrease inshare value, especially on Monday, which was very similar to FTSE100 index decrease.

However, on Wednesday value of Xstrata PLC shares rocket boomed and continued

increase on Thursday. This could be caused due to the announcement that Xstrata Copper

enters into agreement to acquire advanced copper projects in north west Queensland ,

made on Wednesday. In conclusion, we can say that mining industry is hardly predictable

and little more caution when investing in Xstrata PLC should be noted.

Xstrata PLC (XTA.L)performance during the week (18.04.11 21.04.11). Source: Financial times.

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.
http://www.xstrata.com/media/news/2011/04/20/0800CET/http://www.xstrata.com/media/news/2011/04/20/0800CET/http://www.xstrata.com/media/news/2011/04/20/0800CET/http://www.xstrata.com/media/news/2011/04/20/0800CET/


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Burberry Group PLC (BRBYl), a luxury fashion manufacturer, was the biggest winner this week.

The value of the company jumped by impressive 9.11% and reached 1,271.00 per share.

Obviously, the pivotal reason why Burberry showed such decent results is pre-Eastershopping mania. Also, a first quarter report with better than expected news was published.

These both factors were the reasons why the company performed so well this week.

It is even hard to find words to explain the latter development of the company. Counting

from the bottom point at crisis, it took only year and a half to catch up the pre-crisis share

price level. What is more, the price has already increased 8 times since late 2008. No

surprise that rumors starts to appear that Burberry is overvalued. However, the Easter spirit

blew away all the rumors this week.

Burberry Group PLC (BRBYl)performance during the week (18.04.11 21.04.11). Source: Financial times.

http://uk.finance.yahoo.com/q?s=brby.l&ql=1http://uk.finance.yahoo.com/q?s=brby.l&ql=1http://uk.finance.yahoo.com/q?s=brby.l&ql=1http://uk.finance.yahoo.com/q?s=brby.l&ql=1


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The weeks biggest loser was Vodafone Group PLC (VOD.L) whose share value decreased by

3.95%. Vodafone Group PLC opened the week at 178.85 EUR and closed it at 168.85 EUR.

Vodafone Group PLC is a one of the biggest companies in the world which provides mobilecommunications. As many other companies, Vodafone Group PLC experienced tough start

of the week, losing its share value. More optimistic sight appeared on Wednesday when

companies shares improved by about 2%. However, the most critical day of the week turned

out to be Thursday. News that there will be a sale of Vodafone's Stake in SFR to Vivendi

and coming Easter made this turnaround possible. As we predict, that next week, the week

after Easter, will be tough for most of the companies, we suggest being careful when

investing in Vodafone.

Vodafone Group PLC (VOD.L)performance during the week (18.04.11 21.04.11). Source: Financial times.

To sum up, most of the companies, which products are actual during Easter, raised its value this

week. However, we expect that an opposite effect will happen next week because of

consumption boom at this period. Also, gold silver and oil prices are at its peak, so it is

another reason to make a downward pressure on prices.


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MO London Week 16