Brexit headlines dominate the news agenda in an otherwise very quiet day for company news on the stock market on Tuesday. This follows politician’s failure again last night to come to any sort of consensus over the best way forward for the UK.
That puts the pound under more pressure early on Tuesday with Sterling losing ground against both the euro and dollar.
But UK stock markets remain on the front foot with modest gains being made in early deals right across the spectrum. The key FTSE 100 is up by around 22 points, or roughly 0.3%, at 7,339.90 while the mid cap FTSE 250 and smaller company indexes are also in positive territory.
In the threadbare company news that is around, discount clothing chain Bonmarche (BON) is finally being put out of its misery after entrepreneur Philip Day’s Dubai-based Spectre arm makes a mandatory yet cut-price offer for the women’s fashion business.
Established in 1982, Bonmarche operates out of more than 300 stores and concessions across the UK but it has been beset with problems as it struggles to come to terms with shopper’s switch online.
Last month Bonmarche issued its third profit warning in just six months. Spectre’s offer, pitched at 11.445p per share, values the chain at just £5.7m. Shares in the company slump in early trade on Tuesday, falling 2.5p to 15.5p, an understandable reaction considering the one-third discount of the offer to yesterday’s 18p close.
WIZZ DEFIES AIRLINE GLOOM
Elsewhere, Hungarian airline Wizz Air (WIZZ) rallies to the top of the FTSE All-Share leader board after saying net profit for the year to 31 March 2019 will come in towards the top of its stated range.
The company’s previous guidance was for net profit of between €270m and €300m. Wizz Air also says passenger numbers during the year rose 16.7% to 34.57m.
This is welcome news for an industry struggling to cope with Brexit doubts and rising fuel costs.
Packaging firm Smurfitt Kappa (SKG) tops the FTSDE 100 risers, up 2% to £22.13. Drug developer Hikma Pharmaceuticals (HIK) leads the FTSE 100 loser board, its stock off 1.5% at £18.12.
It is D-day for fashion chain Superdry (SDRY) with investors set to vote today on Julian Dunkerton's long-running fight to return to the business he stated. Dunkerton left the chain a year ago but is trying to regain day-to-day control after the firm’s sales and profits collapse under the current management team.
Superdry shares nudge 1.5% to 556p ahead of the vote.
ASDA OVERTAKES SAINSBURY
Latest data for Kantar shows Asda overtaking Sainsbury (SBRY) as the UK’s number two supermarket, with a 15.4% to 15.3% market share. The pair have been trying to convince competition authorities to let them merge, although that prospect looks increasingly remote now.
Tesco (TSCO) remains in top spot with 27.4% market share, while Morrison (MRW) comes in fourth with 10.3%. German discounters Aldi and Lidl, which have been taking the UK by storm in recent years, have a 8% and 5.6% respectively, Kantar calculates.
Oil prices climb to fresh 2019 highs in early trade on Tuesday with Brent crude oil futures currently at $69.22 a barrel.
