“The FTSE 100 has clearly had its Ready Brek as the blue-chip index continues to glow and sustain energy that we haven’t seen in the UK market for a long time,” says Russ Mould, Investment Director at AJ Bell.
“Shifting 0.4% higher to 8,175, it means the FTSE 100’s year-to-date performance (+5.7%) is now better than the Nasdaq 100 in the US (+5.3%), the S&P BSE 100 in India (+5.2%) and the CSI 300 in China (+4.5%). So much for the FTSE’s reputation of being a home for boring, outdated companies.”
Anglo American
“Investors have clearly spent the weekend sitting down with a cuppa and reading the papers as all the column inches about potential counter bids for Anglo American have got people reaching for the ‘buy’ button in their ISA or pension.
“The miner briefly jumped 6% in early trading on Monday following speculation that Glencore and Rio Tinto could both express an interest to buy the mining group, although the shares then eased back. Both want to be bigger players in the copper space and buying Anglo American is a much easier way to expand their asset base than spending a considerable amount of time and money on exploration.”
Elementis
“FTSE 250 chemicals group Elementis enjoyed a small bounce after major shareholder Gatemore Capital published an open letter criticising the company, saying it had ‘lost its direction’ and that it had been mis-managed.
“Not one to mince its words, Gatemore has called for the CEO to be replaced and conduct a strategic review. Naming and shaming in this way are classic techniques by investors who are fed up with a company. Typically, this tends to be a measure of last resort and it will be interesting to see if other investors rally together and put on more pressure to enforce change in the business.”
Hipgnosis Songs Fund
“Another day, another offer for Hipgnosis Songs Fund. Its takeover situation is playing out like an extended 12” mega-mix of one of its artists, jumping back and forth between suitors Concord and Blackstone as they raise their offers.
“Both parties clearly want to be victorious and the investment trust’s board seem happy to switch allegiance to whichever is offering the most money. Ultimately, the winner could be the one with the biggest chequebook. Long-suffering investors will welcome any extra boost to the takeout price they can get.”
Tesco / Eagle Eye Solutions
“Little-known small cap Eagle Eye Solutions started the week off with a bang, securing a new contract with Tesco for personalised promotions.
“The grocery sector is highly competitive and the big names like Tesco have to do everything they can to lure in more customers and keep existing ones happy. Tesco has a reputation for leaning on its rich pool of data to give customers relevant offers and now it seems it is going to make them even more personalised. Eagle Eye’s shares jumped 9%.”
These articles are for information purposes only and are not a personal recommendation or advice.