Print Published 17th Sep 2018, 21:39

Sector share prices: 12 September 2018

Shares in the marketing sector outperformed the FTSE All-Share Index for the third successive month in the period to 12 September.   The sector’s MSFI Index improved by 3.71% to 82.4 (Jan 2001: 100) in the month while the FTSE All-Share Index slipped back by 4%.

While Brexit uncertainty is an obvious excuse for the FTSE All-Share Index decline, the marketing sector appears less concerned.  Some 37% of the marketing companies enjoyed price improvements – many of them quite material – while the rest lost ground or stood still in the month.

Among the strong performers were shares in Cello Health, dotDigital Group, GlobalData and Next Fifteen Communications Group.  Even shares in Be Heard Group managed to show a small improvement after the company announced the departure of its founding chief executive Peter Scott (see Peter Scott leaves Be Heard Group).  The best performing share in the month was that of Jaywing, up 17.8% despite having announced another small loss in July (see Jaywing suffering from depressed UK demand).

Among shares with declining prices were those of Zinc Media (down 13.5%), Ebiquity (down 11.9%) and WPP (down 5.6%).  Shareholders in Zinc Media may still have been digesting the news that Will Sawyer is to join the television production and digital communications company as chief financial officer and board director with effect from 15 October (see Zinc Media hires new CFO from ITN).

Ebiquity had issued a profit warning in July, blaming delays in the proposed sale of its market intelligence division to Nielsen for creating uncertainty and a sales shortfall (see Ebiquity issues profit warning, blaming competition probe).

At WPP, its newly appointed chief executive officer Mark Read announced he would tackle WPP’s under-performing US businesses after reporting a decline in underlying operating profit in the six months to 30 June (see Read to address WPP’s under-performing US businesses).  Today the shares perked up a little.