Ronnie Chopra, Chief Market Strategist at FIXI Markets joins us this morning to discuss indices and stocks that are interesting to him at the moment. These include Sensex, Marks & Spencer and CMC.
Indian market dived initially yesterday when results were coming through of the Gujarat election result. As there were concerns that BJP might lose the election against Congress, which would have been a massive surprise. However, later in the morning it became clear that BJP would win albeit with a much smaller majority. This was a bad result for Modi as this is his state and was expected to win comfortably. This means that there is a lot of disappointment with him regards demonetisation and his Hindu nationalist stance and anti Muslim.
Marks & Spencer
Shares currently at a multi year low around 300p. Company is a value play with a global name. It has been bid for before and at the current price may attract predators again. Global retailer may either attract a private equity bid or a foreign one. At current price, Ronnie believes something drastic is going to happen.
Announcement by ESMA (European Securities Markets Authority) stricter rules on margin trading for retail traders which limits leverage to 30 times rather than hundreds. Shares in CMC fell 15% on concerns of lower revenues. However this makes them oversold as recent results were better than expected and the fall in share price a buying opportunity for the UK’s second largest spread betting/CFD company.
You can see more videos from Ronnie on Core Finance by clicking here.