“The markets started the week with relative calm after news of Iranian strikes on Israel over the weekend,” says AJ Bell Investment Director Russ Mould.
“Oil prices had risen in anticipation of Iran’s action but have fallen back, though gold prices remain near record highs which hints at continuing nervousness among investors. The situation remains fraught and, beyond the geopolitical and humanitarian implications, a more widespread conflict in the Middle East could see energy prices surge and unpick central banks’ careful efforts to bring down inflation.
“For now, the FTSE 100 remains within reach of its record high. Inchcape’s decision to sell its UK car retail operation to a US rival allows it to focus on its higher margin and more resilient global distribution business. In this context it is no surprise to see a positive reaction in the share price.”
Horizonte Minerals
“Another day, another company is teetering on the brink of an exit from the UK market. Rather than seeking a more glamourous listing elsewhere or being snapped up by an overseas acquirer, prospective nickel miner Horizonte Minerals’ days as a UK listed entity looked numbered amid financing problems.
“Its shares have collapsed in value as it has been unable to secure the financing required to progress its flagship project in Brazil. With the project facing escalating costs, it seems the development was just too big an undertaking for a company of Horizonte’s size. Any value recovered looks set to go to creditors, with shareholders warned there is little chance of anything being on the table for them.”
PageGroup
“It’s an awful time to be a recruitment consultant despite resilience in many major economies. The persistently high interest rate environment means companies are under pressure to cut costs and trimming the number of jobs is one way to save money.
“The natural path to follow is to either make redundancies, shift from permanent to more flexible part-time staff or not to replace anyone leaving of their own accord. These steps are all bad for recruitment agencies because it reduces the opportunities to place candidates into roles and increases the pool of people looking for work, meaning companies in certain sectors don’t have to be as generous with hiring packages as there is more candidate choice.
“PageGroup’s trading update paints a picture of a company being hit by gusts of wind from every angle. There isn’t a single territory showing profit progression and both permanent and temporary jobs are proving to be tough terrain.
“Companies which are hiring are taking longer to make decisions and that also hurts the flow of money going to PageGroup.
“Against this chaotic backdrop, the company has to make cutbacks of its own accord. That means fewer recruitment consultants in the business. It’s no wonder the share price has experienced a sharp decline.”
These articles are for information purposes only and are not a personal recommendation or advice.
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- Wed, 24/04/2024 - 10:15