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FTSE up ahead of Jubilee weekend

by LLB Reporter
1st Jun 22 10:59 am

Weak trading in the US may have seen the FTSE 100’s advance stall on Tuesday but the index was doing its best to eke out gains ahead of the Royal Jubilee Bank Holiday on Wednesday morning.

By the time investors have returned after the festivities they could be facing a big hangover depending on the turn Wall Street takes over the next few days and the latest US jobs reading due on Friday. Inflationary concerns look set to continue to dominate the market mood.

Dr Martens took a huge step forward with record results which revealed a big surge in full-year profit as it made just its second ever dividend payment.

AJ Bell investment director Russ Mould said: “The company’s focus on selling direct to consumers seems to be paying off – supporting margins and giving the company greater control over its destiny.

“Perhaps most significantly Dr Martens look set to put one foot in front of the other by following up with more meaningful growth in its current financial year.

“The brand’s appeal clearly still resonates with people and customer loyalty could be an absolute godsend at a time when household budgets are tight.

“In the current environment it is impressive to see a consumer-facing company like Dr Martens accelerating growth plans though it is worth pointing out the shares still have several steps to take to reclaim the price they listed at in their IPO last January.

“A merger of equals between oil and gas firms Capricorn Energy and Tullow Oil reflects how far both have fallen since their glory days – when they were both propelled by exploration success to the ranks of the FTSE 100.

“Even as a combined entity they are a long way short of that today but given Tullow’s very existence seemed under threat at one stage and Capricorn was hamstrung by a dispute with India over tax, shareholders in both companies will hope the tie-up can lay the foundations for renewed growth.

“The deal takes place against the backdrop of a big fall in the oil price amid speculation OPEC might end its affiliation with Russia as a precursor to increasing production.”

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