MARKET REPORT: Luxury stocks shine as LVMH selloffs ease fears
Luxury stocks shined as LVMH eased concerns about the sector’s health.
The French giant, one of Europe’s most valuable companies and home to brands including Louis Vuitton, Christian Dior and Tiffany, reported a 3 percent increase in first-quarter sales to £17.7 billion.
The figures calmed investor concerns about the outlook, and shares rose 2.8 percent in Paris.
The mood spread, with Burberry up 1 percent, or 11 cents, to 1,146 cents in London, while on the Continent Hermes rose 2.3 percent, Cartier owner Richemont rose 3 percent and Gucci parent Kering rose 0.2 percent increased.
Adidas also published figures, which raised its profit forecast for this year from £426 million to almost £600 million after a strong start to 2024. Shares in Germany rose 8.6 percent.
Fashion interests: LVMH, one of Europe’s most valuable companies and home to brands like Louis Vuitton and Tiffany, reported a 3% sales increase in the first quarter
London competitor JD Sports rose 1.8 percent, or 2.15 cents, to 119.05 cents.
Financial markets regained some calm after heavy selling on Tuesday. The FTSE 100 rose 0.4 percent, or 27.63 points, to 7,847.99. The FTSE 250 fell 0.02 percent, or 4.40 points, to 19,340.14.
Mining shares helped push London’s top index higher.
Antofagasta aims to boost copper production despite an 11 percent drop in production to 129,400 tonnes in the first quarter. It still expects production to rise this year, rising 2.8 percent, or 61p, to 2,269p.
Rio Tinto’s solid first quarter results were driven by positive performance in its bauxite and aluminum businesses. It added 2.8 percent, or 149p, to 5403p.
Anglo American joined the rally after its diamond business posted higher sales – almost £360 million from mid-March to April 16.
That was up from £346 million between February 1 and March 12. It rose 3.5 percent, or 73.5p, to 2,168.5p.
GSK climbed 1.3p, or 20.5p, to 1590p after new data showed its shingles vaccine provided protection for more than a decade in adults aged 50 and over.
And studies showed that an oral antibiotic could treat gonorrhea in adults.
Banknote printer De La Rue rose 1.8 percent, or 1.4 cents, to 80.2 cents after its update for the year to March 30 contained few surprises.
Food delivery company Just Eat Takeaway fell 5.2 percent, or 62 cents, to 1,134 cents, after first-quarter orders fell 6 percent to £214.2 million.
Glasses manufacturer Inspecs reported record sales of frames and made a profit again last year despite a weak December.
In 2023 it generated £203.3 million in revenue – up from £201 million the year before, returning to a profit of £200,000. Shares rose 7.5 percent, or 3.5p, to 50.5p.
Investment fund Brooks Macdonald warned that customers will withdraw more than they put in as they face pressure from high interest rates. It fell 2.9 per cent, or 52.5p, to 1775p, while net outflows in the quarter to March 31 were £294m.
Green investor Scirocco Energy wants to exit London’s alternative investment market to cut costs by at least £250,000 a year.
If investors agree, the shares will likely stop trading from May 17. The price fell by 18.2 percent, or 0.05 cents, to 0.23 cents.
Synectics, the security and surveillance sector, added 4.3 per cent (or 8p) to 193p after winning a software contract worth £800,000.