The markets performed very strongly this week with the All-Share Index seeing a 4.9% gain to 1,065 points, outperforming what was a robust showing from the M&C20 which was up 3.3% to an all-time high of 1,301 points.
Greene King’s shares were up 5.5% following the company’s Q3 trading update on Monday, which indicated that Christmas trading was strong, despite poor trading over early December and January. M&B and Marston’s also rose (up 5.2% and 5.3% respectively) on the back of Greene King’s Christmas performance. Both companies have AGMs next week at which they may update on recent trading.
Cineworld finished 7.2% higher, as the market digested the company’s full year trading update last week. The company reported improving trading and highlighted soft comps for the coming year as well as a strong 2015 film schedule.
The Restaurant Group was another sharp riser this week, gaining 7.2%. The group has a number of sites near cinemas and will also benefit from an improved film schedule next year.
JD Wetherspoon reported its Q2 update on Wednesday. The company’s shares rose early in the week in anticipation of good news from the pubco, however trading at the company was less than spectacular and the shares gave back their gains following the results. Nevertheless the shares ended the week up 1% and the company announced it has been buying back its shares since the statement.
Bucking the trend amongst the big caps, Dominos was down 1.9% this week after the chief financial officer Stephen Hemsley unexpectedly stepped down with immediate effect. The company announced that full year pre-tax profit may be better than market estimates, however, Hemsley’s departure prompted several broker downgrades.
Fulham Shore shares dropped sharply this week, ending the week 8.4% lower than they started. The company saw a sharp rise in its share price recently and given the company currently consists of only eight restaurants, a fall in value was perhaps warranted.
Commentary provided by Will Brumby of Langton Capital
