Graham Spooner, investment research analyst at the Share Centre, picks three top shares among the most popular purchases by equities clients in the last seven days.
BT – The share price has been drifting lower this year as concerns grow over its pension deficit and the effect this might have on future dividends. We currently have a buy recommendation on the shares for medium risk investors looking for a balanced portfolio. Taking the view that it can take advantage of its competitive position in the market.
Marks – Interest in the shares on the back of a trading update from high street rival Next. With the share price close to a 5-year low, investors could be eyeing the attractive dividend or hoping that the group will have a better run up to the all-important Christmas period.
We continue to recommend Marks and Spencer as a 'buy' for medium risk investors due to the strength of the growing food business, the significant potential to increase profitability in general merchandise, and the healthy dividend, although uncertainty caused by Brexit may lead to lower economic growth and impact consumer spending. The new plan from Steve Rowe will take time to work so investors will need to be patient and not expect instant results.
Sepura – The share price crashed last week on the back of a profit warning and the CEO having to take time away from the business on medical advice. The company stated that budgetary pressure on its customers meant that earnings would be around 60% lower than expectations. We currently do not have a recommendation on the shares, but note that this is the second trading update this year that has spooked the market. Very high risk.
Graham, whose 35-year career has taken him via Chase Manhattan Bank and City of London Investment Management, now advises on a wide range of investments at retail stockbroker The Share Centre.
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Warning: Remember, particularly if you are new to trading in the stock market and in forex, that the prices of shares and other investments can fall fast and you may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. Also, the BullBearings free stock exchange simulation portfolios are a good way to practice trading techniques.
Thu, 1st Jan - * (ShareCast News) - Banks and miners led the FTSE to a lower close Friday, in a session awash with blue-chip news including disappointing annual results from Royal Bank of Scotland and Standard Chartered, among other stocks reporting.