Cambridge Index surges 8.5%


15-01-2019

The Cambridge Index advanced 1806.8 points or 8.5% to close at 23063.9, as nine of the top ten index heavyweights posted weekly gains to their share prices.

Barclays Capital trimmed its target price on AVEVA Group, up 14.8%, to 2740p from 3150p and gave an “Overweight” rating. JPMorgan Chase & Co. reduced its target price on the stock to 3000p from 3150p and gave an “Overweight” rating. UBS Group slashed its target price on the stock to 2550p from 2970p and gave a “Neutral” rating.

Greene King, up 12.1%, in its trading update for the 36 weeks ended 06 January 2019, announced that it reported a 3.2% rise in its like-for-like sales during the period, whereas sales during last two weeks of the period posted robust gains of 10.9%. Also, the company recorded Christmas day sales of £7.7m. Furthermore, Greene King stated that it remains confident about the full year outlook. Shore Capital reconfirmed its “Buy” rating on the stock. Liberum Capital reissued its “Buy” rating on the stock. Peel Hunt restated its “Buy” rating on the stock. Canaccord Genuity reaffirmed its “Buy” rating on the stock with a target price of 600p.

Liberum Capital restated its “Buy” rating on Kier Group, up 22.6%, with a target price of 660p. 

Abcam, up 7.4%, in its trading update for the six months ended 31 December 2018, announced that the group continued to perform well and is likely to meet its annual financial and strategic goals. Also, the company mentioned that it anticipates around 11% rise in its total profits, while gross margin is expected to meet firm’s prior consensus. The company will publish its interim results for the six months ended 31 December 2018 on 04 March 2019. Peel Hunt reiterated its “Hold” rating on the stock. Berenberg Bank reissued its “Buy” rating on the stock with a target price of 1640p. JPMorgan Chase & Co. reconfirmed its “Neutral” rating on the stock. Numis Securities restated its “Add” rating on the stock with a target price of 1340p.

Peel Hunt reconfirmed its “Hold” rating on Science Group, up 2.9%.

Peel Hunt reiterated its “Hold” rating on Horizon Discovery Group, up 0.6%.

UK markets closed significantly higher last week, led by gains in banking and retail sector stocks. In economic news, the British economy slowed to a 6-month low in the three-months ended November, while the nation’s total trade deficit narrowed in November. Additionally, the UK retail sales declined to a decade low in December, while the UK manufacturing as well as industrial production unexpectedly eased in November. On the other hand, the UK house prices jumped at its fastest pace in almost 2 years in the three months ended December 2018. The FTSE 100 index advanced 1.2% to settle at 6918.2, while the FTSE AIM 100 index rose 4.6% to close at 4687.9. Meanwhile, the FTSE techMARK 100 index jumped 4.5% to end at 4541.7.

US markets ended in the green in the previous week, following gains in technology and industrial sector stocks. In major news, the US Federal Reserve’s December monetary policy meeting minutes showed that policymakers would remain patient on the future pace of interest rate hikes, due to volatility in financial markets. On the data front, the US inflation fell to a March 2018 low in December, while the nation’s non-manufacturing PMI declined to a 5-month low in December. On the contrary, the number of Americans filing applications for fresh jobless benefits dropped to a 1-month low in the prior week. The DJIA index rose 2.4% to end at 23996.0, while the NASDAQ index gained 3.5% to close at 6971.5

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