By Patrick Munnelly, Market Strategist, Tickmill
On Monday, the UK’s FTSE 100 saw a modest decrease, on investor caution as they brace for a succession of economic data releases scheduled throughout the week. The blue-chip FTSE 100 registered a decline of 0.37% by the end of the session, offset by mining stocks that supported the commodities-centric index, driven by the continued advances in Gold prices.
Righmove optimistic outlook
On the positive side of the ledger Rightmove LON:RMV, the UK’s largest property portal, has seen a notable 4.8% increase in its shares. This surge relates to the company’s optimistic outlook on higher annual revenue per advertiser (ARPA), fueled by an uptick in listings from new home developers. Rightmove now anticipates its full-year ARPA to range between £112-£116, surpassing its earlier projection of £103-£105. The company asserts that its overall outlook for 2023 remains consistent with previous forecasts. Consequently, Rightmove’s shares have reached their highest level since October 19. Despite a minor decline in stock value earlier this year, the recent performance of Rightmove has been positive. Miner Fresnillo LON:FRES also enjoyed a positive session as Gold prices hit a six month high sending the miners share price higher by 4.3%.
Entain downgraded by Goldman Sachs
On the negative side of the ledger sits Entain LON:ENT, the owner of Ladbrokes, seeing a decline of 0.79% on the day, marking the third consecutive session of decline for the stock. This decline followed a ‘Sell’ rating downgrade by brokerage firm Goldman Sachs, shifting from its previous ‘Buy’ rating, accompanied by a target price reduction to 820p from 1,450p. The downgrade was attributed to disappointing online growth, BetMGM (joint venture) losing market share in the US, and a larger-than-expected settlement in Turkey. Despite the downgrade, 13 out of 20 analysts maintain a ‘Buy’ rating for the stock, with a median target price of 1,613p according to LSEG data. On Friday, Entain agreed to pay a £585 million ($728.97 million) penalty under a deferred prosecution agreement with the UK’s Crown Prosecution Service, concerning alleged bribery offences at the company’s former Turkish unit. Year-to-date, the stock has declined by 35% as of the last close.
Podcast: Everything you need to know about the FTSE 100 Index
Subscribe to our podcast on your favourite platform
Don’t miss out on our weekly podcast. You can find us on Spotify, Soundcloud, Amazon, Apple, YouTube and many other popular platforms