Comment: European Equites Slide, Copper Hammered; Poundland & Pets At Home Debut
March 12, 2014 6:50 am
Equity markets in Europe head lower at the open Wednesday as persisting worries over slowing growth in China weigh on market sentiment in Asia overnight. Commodities, particularly metals like copper decline sharply on the China concerns – gold however has managed to book gains thanks to its “safe-haven” label as well as core government bonds.
US stock markets declined Tuesday following on from a soft European session – markets are of the view that weakness in emerging markets [China in particular] combined with geopolitical tensions relating to not only the situation in Ukraine but other nations such as Thailand and to a lesser extent right now, Turkey.
As we gear up for the session ahead, market participants will of course have to contend with ongoing developments in the Ukraine but on a macro level, UK trade data and euro zone industrial output will be eyed.
IPO day here in London with Poundland and Pets at Home both making debuts on the London Stock Exchange; conditional dealing just started with discount retailer Poundland’s stock going better than the issue price of 300p which is the top end of the range. 12million shares have already traded; Poundland shares are currently at around 347p, an instant 14% premium to the issue price – the pop at the open for Poundland shares certainly reflects the popularity of IPOs in the London market.
We listed Poundland in our grey-market– it received high levels of demand from retail clients, more so than Pets at Home given the wider popularity of Poundland on the UK high street. Pets at Home, who we also listed in our grey-market, also received healthy demand but certainly not as rampant as investors appetite for Poundland.
Pets at Home’s is trading below its issue price of 245p, currently trading around 232p but still in the indicative price range set out by the company. Taken together, both IPO debuts will be seen as a success, as retail investors were given the opportunity to be involved in the IPOs. Both these companies are consumer facing, so highly popular in the UK. Despite the controversy, last year’s IPOs of Royal Mail boosted investor confidence over IPOs with media hype and attention bringing stock floatations back into attention after the IPO dried up during the financial crisis.
Equity markets in Europe head lower at the open Wednesday as persisting worries over slowing growth in China weigh on market sentiment in Asia overnight. Commodities, particularly metals like copper decline sharply on the China concerns – gold however has managed to book gains thanks to its “safe-haven” label as well as core government bonds.
US stock markets declined Tuesday following on from a soft European session – markets are of the view that weakness in emerging markets [China in particular] combined with geopolitical tensions relating to not only the situation in Ukraine but other nations such as Thailand and to a lesser extent right now, Turkey.
As we gear up for the session ahead, market participants will of course have to contend with ongoing developments in the Ukraine but on a macro level, UK trade data and euro zone industrial output will be eyed.
IPO day here in London with Poundland and Pets at Home both making debuts on the London Stock Exchange; conditional dealing just started with discount retailer Poundland’s stock going better than the issue price of 300p which is the top end of the range. 12million shares have already traded; Poundland shares are currently at around 347p, an instant 14% premium to the issue price – the pop at the open for Poundland shares certainly reflects the popularity of IPOs in the London market.
We listed Poundland in our grey-market– it received high levels of demand from retail clients, more so than Pets at Home given the wider popularity of Poundland on the UK high street. Pets at Home, who we also listed in our grey-market, also received healthy demand but certainly not as rampant as investors appetite for Poundland.
Pets at Home’s is trading below its issue price of 245p, currently trading around 232p but still in the indicative price range set out by the company. Taken together, both IPO debuts will be seen as a success, as retail investors were given the opportunity to be involved in the IPOs. Both these companies are consumer facing, so highly popular in the UK. Despite the controversy, last year’s IPOs of Royal Mail boosted investor confidence over IPOs with media hype and attention bringing stock floatations back into attention after the IPO dried up during the financial crisis.
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