AB Foods Jumps After Q1 Impresses
Fiona Cincotta January 16, 2020 6:57 AM
European sales have been a highlight. Eurozone Primark saw sales jump 5.1% coupled with like for like growth. US Primark also recorded like for like sales growth in the quarter. Overseas is proving to be a strong point for Primark. Given Primark’s lack of online presence, the overseas business is compensating for the tough conditions of the UK market.
Strong growth was also experienced at AB Sugar as EU sugar prices remained healthy. Revenue jumped 7%, which combined with cost reductions means full year profits are set to improve.
Overall there was a lot to like in these results. Primark continues to perform well compared to rivals despite challenging conditions, amid weak consumer confidence and low retail sales in the sector, and despite the fact that the business has no online presence. Whilst a sugar rush from AB Sugar helped push AB Foods to the top of the FTSE.
AB Foods has jumped 3% in early trade on Thursday. It trades firmly above the 50, 100 and 200 sma on a bullish chart.
Resistance can be seen at 2680p (Jan10 high) before the all time high of 2704p (7th Jan). Immediate support can be found on the trendline in the region of 2575p and then yesterday’s low 2547p.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.