Aston Martin started the week firmly on the downside after a downgrade from City’s runners.
The carmaker, whose shares have fallen sharply since its successful stock market flotation in 2018, fell 3.6 per cent, or 5.2 pence, to 141.3 pence.
The sell-off came as analysts at Jefferies cut their price target on the stock to 250p from 275p.
Aston Martin is valued at just £1.2bn, having been valued at £4.3bn when it listed in London almost six years ago.
And while James Bond’s favorite car brand remains widely admired, it revealed last month that revenue in the first quarter of the year fell 10 per cent to £267.7 million, while losses widened to £ 138.8 million pounds. At the same time, his debt rose to more than £1 billion.
Dismal performance: Aston Martin is valued at just £1.2bn, having been worth £4.3bn when it listed in London almost six years ago.
It was a mediocre session in the market in general.
The FTSE 100, which has suffered its longest weekly losing streak in more than four years, fell 0.06 per cent, or 4.71 points, to 8,142.15, while the FTSE 250 added 0.2 per cent. percent, or 39.36, through 20159.72.
Investors have been disappointed by the Bank of England’s failure to cut interest rates so far this year, leaving them instead at a 16-year high of 5.25 percent despite a sharp fall. of inflation.
At the beginning of 2024 it was thought that rates would have already been reduced and could fall as much as 3.75 percent by Christmas.
But investors are betting on only two cuts to 4.75 percent.
And any hopes Rishi Sunak had of rates being cut before the election look set to be officially dashed on Thursday, when the Bank is expected to hold fire once again.
Stock Watch – Mental Gym
Mind Gym shares plummeted to a record low as decreased spending on corporate diversity programs hit companies.
Shares fell 22.1 per cent, or 8.5p, to 30p, leaving the company set up and run by Old Etonian Octavius Black worth £38.6m, after which reported an 18 per cent drop in revenue to £44.9 million.
It racked up losses of £12.1m, after making a profit of £3m the previous year.
The company warned of a “material decrease” in companies’ spending on diversity, equality and inclusion initiatives.
It looks like the first cut will arrive in August or September in what would be a welcome boost for whoever is in Downing Street: probably Keir Starmer and Rachel Reeves.
Mining stocks were under pressure after China – the world’s largest consumer of raw materials – reported weaker-than-expected industrial production.
Rio Tinto lost 0.7 per cent, or 38 pence, to 5,181 pence, Glencore fell 1.4 per cent, or 6.2 pence, to 448.35 pence and Anglo American lost 0.7 per cent, or 17.5p, up to 2,371p.
Takeover target Crest Nicholson, which last week revealed it had rejected two offers from rival Bellway (up 0.2 per cent, or 6p, to 2,604p), the second valuing it at £650m, added down 2.6 per cent, or 6.2p, to 248.2p. after Peel Hunt upgraded its rating on the stock to “add” from “hold.”
Upper Crust owner SSP fell 2 per cent, or 3.4 pence, to 165.2 pence after Goldman Sachs downgraded the food chain operator to “sell” from “neutral” and cut the price target 225p to 160p.
Analysts at the investment bank said they prefer WH Smith to SSP. Both sell food in travel hubs, including airports and train stations, but Goldman expects a relatively better performance from WH Smith (up 2.3 per cent, or 27p, to 1,183p).
Kingfisher, owner of B&Q and Screwfix, has hired Bhavesh Mistry as chief financial officer after Bernard Bot retires next year.
Mistry has been head of finance at owner British Land for three years. Kingfisher shares fell 1.1 per cent, or 2.8p, to 245.8p. British Land added 0.3 per cent, or 1.2 pence, to 427.8 pence.
