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“Market have paused for breath in parts of the world after an adventurous few weeks. The FTSE 100 and FTSE 250 barely moved on Friday morning, mirroring a similarly static performance across mainland Europe. “It was a different story in Asia where China’s Shanghai Composite index fell 2.5% as investors sounded caution ahead of next week’s G20 summit. US President Donald Trump will meet Chinese leader Xi Jinping at the event for crucial talks on trade. The decline in the market on Friday implies that investors are nervous that the two leaders won’t come to an amicable agreement. “The Shanghai index is down 20% this year, making it one of the worst performers among the main indices in the world. In contrast, the FTSE 100 is down 9.2% year-to-date and the main indices in the US – the Dow Jones and the S&P 500 – are only 1% lower so far this year,” says Russ Mould, Investment Director at AJ Bell.
Ibstock
“Brick maker Ibstock goes some way towards rebuilding its relationship with shareholders as it unveils the disposal of its US business, which has been well-received.
“The brick manufacturing sector has benefited of late from strong demand from housebuilders and falling brick stockpiles. However, Ibstock has endured a problematic 2018 thanks to a weather-related impact early in the year which put a lot of construction activity on pause and difficulties which were of its own making.
“When demand bounced back after the cold snap, Ibstock was unable to fully service it thanks to production issues at its factories.
“The $110m booked from the sale of US-based Glen-Gery will boost the balance sheet and, in a sign that the non-core business will not be missed too much, full year guidance is maintained despite the loss of a month’s worth of contribution from it.
“Although the housebuilding sector faces several challenges at present, not least a weak housing market, the volume of houses built, which is probably the most relevant factor for Ibstock, seems likely to remain high.
“Investors will be hoping today’s strategic move can set the stage for a better showing in 2019.”
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