The FTSE 100 was steady on Friday after gains on Wall Street yesterday, as investors largely shrugged off the latest political news in the UK.
Oil prices ticked higher and Asian stocks dipped as negotiations between Washington and Tehran were apparently put on hold while Israel continued to pursue strikes against Lebanon. These developments are a reminder that for all the relief around a deal being agreed in the Middle East, there remain material obstacles to returning to a pre-war situation.
BP and Shell clawed back some of the ground they lost this week, while more defensive names found a bit of favour in London too. Banks were on the back foot along with retailers.
SpaceX continued to lose altitude after its stratospheric market debut, falling for a second day on the trot. Futures markets imply further weakness when trading resumes in the US on Friday.
While there have been elements of SpaceX’s IPO that have felt unique, it is not unusual for businesses to enjoy a pop on the stock market when they first join, before the shares then pull back as short-term traders cash out. This paves the way for longer-term investors to take a position.”
Entain
Reports suggest Ladbrokes-owner Entain is about to roll the dice and sell its stake in its Central and Eastern Europe venture to raise cash and help pay down its hefty debt pile.
Entain is under significant pressure to do something about the extra costs triggered by hikes to online gambling taxes in the UK – something that has also depressed its share price.
Entain is yet to address the speculation but there is logic to the deal. The company’s overseas focus is directed towards the increasingly lucrative US market. Exiting a major portion of its European business may revive takeover rumours as it becomes an easier target to swallow, with its US partner MGM Resorts failing with a previous bid for the group in 2021.”
PPHE Hotel
Having seen the PPHE Hotel board flag an offer from Fattal Hotel as fair value last month, there is likely to be frustration that the deal has collapsed thanks to the opposition of major shareholder Euro Plaza.
PPHE started a strategic review and put itself up for sale last November, so there may be pointed questions about why Euro Plaza is opposed to a takeover approach that was being made in cash by an experienced industry player.
It simply looks as if Euro Plaza’s idea of what PPHE is worth is radically different to Fattal’s.
Dan Coatsworth: Head of Markets
Dan Coatsworth is AJ Bell's Head of Markets. Dan has been with the company since December 2012 and has more than 18 years' experience in the industry, following the markets and all things investing. He...
