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FTSE 100 heads towards new record with housebuilders lifted by McCarthy & Stone

Discussion in 'Market News' started by Lily, Oct 11, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Mixed picture for leading shares as sterling continues to slide

    Leading shares are heading for a new all time high as the slump in the pound continues to benefit the exporters and dollar earners which dominate the top index.

    The FTSE 100 is currently up 6.51 points at 7104.01 and although it is off its best levels and has failed to reach an intra-day high, if it ends at this level it will be a new closing record.

    Investors pause for breath after yesterday’s gains with the FTSE 100 index now nudging higher in early trading having initially opened in the red in a narrow trading range. While sterling remains under pressure having slipped 0.6% against the dollar a trade group survey showed UK retail sales rose in September providing some respite for retail stocks.

    Although showcasing the various parts of which group, much attention is likely to focus on the progress of and implications for the forthcoming demerger of the company into its constituent parts, namely Emerging Markets, Old Mutual Wealth, Nedbank and OMAM. An adjusted NAV of 193p as at June 2016, up 8% in H1 16, forms the starting point for this process, with the stock still offering good upside potential from the current 1.1 times level.

    We reiterate our buy recommendation on the stock, believing that the demerger of the business will release significantly more value than implied by the current rating.

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