The M&C20 marginally underperformed the All-Share this week rising 3.0% (to 1,378 points) versus the All-Share’s 3.2% rise (to 1,107 points). The wider market saw a strong performance in oil and mining stocks as the All Share ended the week above 7,000 points once again.
The big caps led the M&C20 up this week with Marston’s and The Restaurant Group outperforming the market rising 3.7% and 3.8% respectively. M&B performed even better, rising 5%, recouping some of its recent losses. Cineworld was up 2.4%, slightly underperforming the All-Share Index, though still performing well in what was another oil driven bounce in the wider market.
Enterprise Inns was up 7.9% while Punch Taverns was up 0.7% this week. The news last month that pubs receiving significant investment from Pubcos would be carved out of the MRO will have been welcome news for both companies, though Punch’s shares look to continue to be held back by the group’s recent financial troubles.
Fulham Shore shares were up 5% to 21p this week following its takeover of Franco Manca a few weeks ago, while Revolution Bars Group’s shares crept closer to their listing price, ending the week up 0.6% at 199p. The shares listed at 200p in March.
JD Wetherspoon was up 1.1%. Shares in the company fell when they disappointed the market at their interims last month, however the company has taken the fall as an opportunity to buy back its shares, having bought back some £5m worth of shares over the last month.
Eclectic Bars group was down another 6% this week to 47p. Shares in the bar chain halved for the second time in less than a year when they produced their H1 numbers on March 25, which saw pretax losses widen to £525k. Drinking trends among students, who the group relies upon for mid-week trade, have not been helpful, with students drinking less and staying out for less time.
Next week sees the UK’s Consumer Price Index released by the ONS. It is expected that the UK could see brief negative inflation this year, which would be good news for consumer spending, provided it did not lead to wage depression.
Commentary provided by Will Brumby of Langton Capital
