Daily market update: Markets, Prudential, BHP, Ramsdens, Unilever

Talk of a deal between Iraq and Turkey to restart oil supplies has helped to calm financial markets.

This provided some relief to investors on the edge of their seats amid worries about disruptions to oil supplies. While the news helped to nudge down Brent prices by 0.5% to $102.89 a barrel, getting the commodity value significantly lower still depends on resolving issues around the Strait of Hormuz.

Investors are embracing any bit of good news they can, hence why markets pushed higher across Europe. The FTSE 100 advanced 0.2% to 10,420, led by a surge from Diploma off the back of a well-received trading update. Business is booming in areas like aerospace and margins are expanding, precisely the characteristics investors are desperately seeking in a market clouded by geopolitical tensions.

It’s a big week for interest rates in the UK and US, but the Middle East crisis could put any monetary changes on ice. It’s a wait and see situation as policymakers get to grips with whether an inflation shock will be short lived or a long-lasting pain to fight.

Among smaller companies, Moonpig showed the greeting cards market is still alive and well. Its shares jumped after a robust trading update and a new share buyback.

Prudential

Generous shareholder returns help demonstrate management’s faith in Prudential’s prospects as the company announced robust full-year results.

However, the market remains nervous about the business – likely in part thanks to current global tensions and an energy crisis which looks like it could disproportionately impact Asia.

The attraction to Prudential of the African and Asian markets it has focused on since exiting most of its businesses in the developed world around the turn of the decade is their greater growth potential.

Because fewer people in these countries have pensions or insurance products and because their middle classes are growing, there should be scope for growth. 

That growth is coming through, but Prudential’s messages are currently being lost amid a lot of geopolitical noise.

BHP

The market seems comfortable with the idea of an internal replacement for outgoing boss Mike Henry. Continuity is welcomed given the strategy pursued by Henry appears to be bearing fruit.

The miner has shifted its focus away from a previous reliance on iron ore and thermal coal towards commodities like copper, nickel and potash which are seen as more ‘future facing’.

BHP achieved a milestone with the company’s first-half results in February as copper overtook iron ore as the largest contributor to profit for the first time. 

Incoming CEO Brandon Craig has a hard act to follow as he looks to build on the growth in copper production achieved under Mike Henry. His hands-on experience of managing several of BHP’s largest copper assets should be a plus point in this sense.

Whether this will involve turning to M&A again after BHP’s unsuccessful pursuit of Anglo American remains to be seen. Markets may want to see signs of organic progress before they’re prepared to back a new man at the top in pursuing a big deal. 

Ramsdens

Surging gold and silver prices are not just good news for the companies which dig the stuff out of the ground. It’s also a time to shine for pawnbroker and jeweller Ramsdens – which has delivered a sizeable upgrade to profit guidance.

It’s hard to know just how long the good times will last, but for now Ramsdens is enjoying a golden period. Shareholders will be encouraged to see the company building on a position of strength by continuing to roll out new stores.

Unilever

Dan Coatsworth, Head of Markets at AJ Bell, comments:

Love it or hate it – Unilever shareholders might be called to vote on the future of Marmite and other food brands. Unilever’s food division could be on the chopping block amid rumours the parent might spin off the business.

The consumer goods giant is midway through a process of slimming down to have a sharper focus on what it does best. There is a clear focus on beauty, personal care and wellbeing, meaning food interests no longer sit comfortably on the menu.

It has already sold some assets and demerged its ice cream arm, recently proclaiming itself as a simpler business with a leaner cost base and more agility. That journey may not be complete.

The food assets include Hellmann’s mayonnaise and Knorr stock cubes, as well as Marmite, and they accounted for a quarter of group revenue in 2025. They are solid brands and household favourites, meaning a spin-off could get a warm reception from the market. A sale of these assets cannot be ruled out with trade buyers or private equity as potential owners.

Someone taking a long-term view might see Unilever’s food business as a portfolio of cash-generative brands that could yield tidy returns.

Unilever’s food business is a slow and steady entity. Growth will never shoot the lights out, but that isn’t to be expected for a business of this size and scale. Operating margins improved in recent years, but topline sales last year were hit by unfavourable currency movements.

Unilever knows how to execute a demerger and could repeat the same process for the food arm as it did with the ice cream assets, assuming a buyer with a reasonable offer fails to emerge.

Demergers aren’t a last resort. They often lead to greater value generation than under a conglomerate structure. Divisional management are typically free to make more entrepreneurial decisions rather than having a parent company pulling the strings.