Print Published 14th Sep 2017, 09:13

Sector share prices: 12 September 2017

MSFI Index 12Sep17

Share index movements in the month to 12 September reversed the previous month’s trend, with the sector’s MSFI Index losing ground slightly by 0.98% ground while the FTSE All-Share Index improved by a modest 1.11%.  To some extent the rather tentative situation may reflect the current political uncertainty as the Brexit process judders forward.  But it may also be influenced by WPP’s downbeat assessment of economic conditions and the increasingly competitive environment in which the marketing sector is operating.

The MSFI Index stood at a lowly 74.6 on 12 September (Jan 2001: 100) whereas the FTSE All-Share Index has improved by 36.2% over the same period – hardly an impressive performance either.

In the month to 12 September shares in 55% of listed marketing companies lost value, with WPP and Porta Communications leading the way down.  Shares in Porta fell by 13.7% as it approached the announcement of its half year results despite securing backing from Italian PR group SEC as part of a financial restructuring (see Italian PR group injects £3m into Porta: Morton loans restructured).  Shares in WPP fell by 11.8% following its half year report (see Whither WPP or will it wither?)

Among the few shares showing a more positive trend in the  month were those of heavily indebted Communisis (up 25.1%) where profits now appear to be improving steadily after a bad 2014 (see Communisis profit improves: pension deficit reduced). St Ives’s shares rose by 17.5% after announcing that its overall results for the year were expected to be at the top end of the range of market expectations (see St Ives optimistic about year’s results).  Bullish noises from Crossrider helped lift its shares by 13.1% despite reporting another loss, and that was after excluding development costs of £484,000 that were capitalised in the period (see Crossrider still incurring losses – this time £0.8m)

Cello Group‘s shares put on a useful improvement of 5.4% after the company put out a mixed message, saying it had enjoyed a good half year but would incur an exceptional charge arising from reducing its staff levels in the US (see Cello facing more abnormal costs).

sector share prices 12Sep17