The All-Share Index is close to its all-time highs this week and it’s worth noting that the last time the index recorded a new all-time high was in 1999. That said, the wider market is currently being held back by geopolitical events with the All-Share recording an increase of just 0.3% (to 1,080 points) this week. The M&C20 by comparison was up 0.5% to 1,347 points, most likely outperforming due to its domestic bias.
Minnows Tasty and Richoux ended the week up 5.1% and 3.1% respectively. The shares likely rose on the back of data from the Coffer Peach Tracker last week which suggested restaurants have performed well recently. Shares in both companies are very illiquid and sharp moves are to be expected.
JD Wetherspoon saw its shares 0.9% better this week, having recovered from a drop in its shares following its Q2 results. The company bought shares back at around the 800p mark following its Q2, and after this week’s rise the shares are currently 808p.
SSP Group was 0.8% better this week. Investors wary of recent geopolitical events will have been steering clear of companies whose performance is strongly correlated to changes in passenger numbers so any perceived improvements in global sentiment are likely to send the shares better.
Cineworld shares were up 2.1% this week. Investors will be expecting 2015 to be a good year for cinemas with a strong line-up of films scheduled. The 50 Shades Of Grey film has performed very well at the box office, particularly in Eastern European countries where Cineworld has a growing presence.
Mitchells & Butlers had another good week with its shares up 3.9%. M&B saw its Browns brand take the top spot for customer satisfaction in the February/March edition of the CGA Peach BrandTrack which came out this week. The group’s shares have been very strong recently, rising almost 20% since the start of the 2015.
Next week will see final results from Domino’s Pizza and The Restaurant Group. The wider market will also be watching the UK mortgage data coming out next week as fears of a slowdown in the housing market persist.
Commentary provided by Will Brumby of Langton Capital
