Despite this morning’s trading update setting the company on track to deliver record full year profits, markets have failed to warm to the instant-serve equipment group. This morning’s losses came off the back of steady selling last week and whilst foreign currency headwinds are proving challenging, some may be questioning whether the early reaction is overdone. Just after 9am, share sat around 5% lower.
It’s looking like a rather quiet start to the week but shares in DS Smith proved to be one of the biggest fallers on the FTSE-100 in early trade. The company is in the process of being acquired by US-based International Paper in an all share combination deal. That presents exposure to the buyout partner so there’s arguably nothing untoward in Aviva’s decision to reduce its stake marginally, news that was announced shortly before the close on Friday night. An hour into the day and the stock was down by almost 2%.
The AIM listed Canadian mineral exploration company has this morning seen some meaningful gains in its share price after announcing that HyProMag, a rare earth magnet recycler it owns a significant holding in, is set to collaborate with a Japanese partner. Rare earth recycling is seen as a hugely untapped space and Japan is home to many industries that use these magnets in their products. Shares are up an impressive 28% in early trade.
Headlines we expect on Tuesday
First Group Final Results
This time last year Attributable profit £82.1m, Year end net cash £109.9m, Dividend 3.8p
