Print Published 14th Dec 2013, 22:23

Sector share prices: 12 December 2013

MSFI Index 12Dec13

Shares in the marketing sector continued their upward trend during the month to 12 December, further narrowing the gap between the industry’s MSFI Index and the FTSE All-Share Index.

However, the upward movement was far more gentle than of late – adding just 0.30% to the MSFI Index which has so far recovered to 52.1 (January 2001: 100).  The FTSE All-Share Index slipped back by 3.66% during the month.

Most of the sector index growth can be attributed to just three companies – dotDigital Group, Motivcom and Tangent Communications.  All are relatively small, but their price rises were relatively large.

dotDigital shares gained value as the market anticipated the benefits of shedding its search optimisation business and reinvesting the proceeds.  The Motivcom share price seems to have increased consistently over the last six months as the company recovered profitability and parcels of shares were purchased by Pershing Nominees.   Tangent Communications benefitted from a profit recovery and optimistic noises about prospects at its Tangent Snowball digital marketing subsidiary.

The price of shares in M&C Saatchi faltered after months of strong growth, presumably after digesting the impact of the sale of Walker Media to Publicis Groupe (see Walker Media sale puts £36m in hands of M&C Saatchi owners).

Disappointing share performances came from Creston (down 16.7% in the month after announcing disappointing results – see Costs up, revenue down as Creston’s profit drops by £7m), Jaywing (once known as Digital Marketing Group, down 25% – see Tryzens disposal causes Jaywing half year loss of £4.6m) and Ten Alps (down 21.7% – see Ten Alps revamps comms division as losses continue).  A number of other companies suffered smaller falls in share price, including the mighty WPP.

Sector share prices 12Dec13