Sector movers: M&A chatter lifts Vodafone, offsetting tech malaise
Vodafone Group
69.00p
16:40 25/04/24
Cyclicals paced gains in the market place on Monday, as M&A chatter boosted stock in mobile telecommunications services vendor Vodafone.
FTSE 100
8,078.86
17:14 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Mobile Telecommunications
1,814.05
16:59 24/01/22
Stoking interest in that stock, DealReporter said US activist investor Elliot Management Corp. had taken a significant stake in the carrier, although the exact size was unknown.
That came amid a third day of heavy selling in the US technology space - which made itself felt among UK software issues - amid talk in markets that the Bank of Japan might be set to tweak its bond buying programme when rate-setters in Tokyo met on Tuesday.
Earlier in the session, the BoJ opted to step into government bond markets again, offering to buy any Japanese 10-year sovereign debt on offer at a yield of 0.10%, its self-imposed cap for longer-term rates under its policy of so-called yield curve control.
In the background meanwhile, also on Monday, analysts had reportedly echoed a warning from their peers at Bank of America-Merrill Lynch from five days before, telling clients the stockmarket looked "exhausted".
On 26 July, and following a sharp slide in shares of Facebook, analysts at BofA-ML had said: "FB market cap (still) bigger than India; in the past 10 years tech & internet EPS has risen from $100 to $250, EPS of everything else in world up from $100 to $115; US EPS up from $100 to $168, rest of world down from $100 to $84; FB shock classic "late-cycle" event…cult leadership becomes volatile & vulnerable as "liquidity" drained."
In parallel, Hiscox paced gains in the non-life insurance space after posting better-than-expected half year profits, helped by reserve releases after it marked down its loss estimates for catastrophes in 2017.
With the shares already trading at fresh 52-week highs, it was later reported that Fidelity Management and Research had lifted its stake in the company from 6.59% to 6.71%.
Linked to the theme of rising interest rates around the world, or the hope thereof, higher yields on 10-year Gilts saw life insurers climb.
On the flip side, interest rate-sensitive utilities were knocked lower.
Tobacco stocks were wanted too, with British American Tobacco benefitting from Credit Suisse having reportedly reiterated its 'outperform' stance on the cigarette-maker.
However, just a few days before, on 26 July, Berenberg had cut its target price for the shares from 5,340p to 4,950p, albeit while reiterating its 'buy' stance.
Top performing sectors so far today
Mobile Telecommunications 4,171.38 +3.44%
Insurance (non-life) 3,126.33 +1.75%
Life Insurance 8,499.50 +1.00%
Tobacco 45,980.69 +0.92%
Automobiles & Parts 10,676.17 +0.76%
Bottom performing sectors so far today
Software & Computer Services 1,826.53 -2.54%
Beverages 22,393.94 -1.36%
Gas, Water & Multiutilities 4,885.26 -1.20%
Electricity 7,515.42 -0.98%
Food Producers & Processors 7,299.16 -0.78%