The M&C20 outperformed the All Share index this week, down 0.7% against the All Share’s 2.6% drop. Global markets continue to be depressed by uncertainty over Greece’s future in the Euro after the group delayed repayment of some €300m this week.
The big caps were down more or less in line with the market, with Wetherspoon down 1.7%, M&B down 2.2%, Greene King down 1.9% and SSP Group down 2.1%. The M&C’s index has been somewhat protected by the fact that the majority of its constituents are domestic stocks with a limited exposure to geopolitical events. All equities, however, are at risk should investors feel the need to move to other asset classes.
Marston’s and Patisserie Valerie saw their shares fall more sharply than their peers this week with Marston’s down 3.5% and Patisserie Valerie down 3.9%. Both companies’ shares have been strong in recent weeks, so it is perhaps not surprising that their shares were subject to profit taking this week.
Richoux’s shares were down 7% this week, however, the group’s shares have risen more than 45% over the last four weeks, following the group’s full year numbers last month.
Young’s was the only group to see a significant upward move this week, up 8.8%, having risen significantly in recent weeks following its full year numbers. Fuller’s ended the week down 0.7%, however the shares rallied strongly on Friday following the group’s full year numbers, which were broadly in line with Young’s.
Commentary provided by Will Brumby of Langton Capital
