Investors remain optimistic despite geopolitical uncertainty, British Land disposes of stake in Sheffield shopping centre, Ryanair hints at ticket price cuts and Kainos surges after bright update

“Investors have plenty to keep them occupied, with geopolitical uncertainty butting up against China growth hopes and a few domestic nerves ahead of Wednesday’s inflation figures,” says AJ Bell Head of Financial Analysis Danni Hewson.

“Optimism still seems to be the primary driving force with mining stocks up significantly after copper prices hit fresh record highs, thanks in part to new measures designed to prop up China’s ailing property sector.”

British Land

“Retail estate investment trust British Land has worked hard to re-position its portfolio to capitalise on changing shopping habits.

“The disposal of its stake in Sheffield’s Meadowhall centre is something of a milestone, reducing British Land’s exposure to covered shopping centres. After the sale just seven percent of its portfolio won’t sit within its preferred segments of retail parks, campuses and London urban logistics.

“Consumer habits have changed since the late 1990s when the company shelled out over a billion pounds for the centre.

“This deal values the entire estate at considerably less and judging by today’s share price reaction investors aren’t exactly pleased by the numbers even if they understand the reason for the depreciation.”

Ryanair

“It might seem counterintuitive that Ryanair’s share price is enduring a bit of turbulence after the low-cost airline announced record passenger numbers and profits, but the prospect that ticket price cuts might be on the way has subdued sentiment.

“The post-pandemic demand for travel gave carriers an opportunity to recoup rising costs despite a cost-of-living crisis which ate into consumers’ disposable income.

“But even if people are beginning to feel a little better off as inflation falls, they are remaining cautious, which could have an impact on the number of bums on seats once the summer surge is over.

“Like rival airlines Ryanair needs to keep planes as full as possible to maintain margins, so keener pricing could be a requirement in those leaner winter months.

“That prospect is dragging London listed EasyJet along for the ride, its shares still struggling after last week’s announcement that its CEO is stepping down.”

Kainos

“It seems no company update is complete these days without a nod to the potential AI has to offer and NHS software provider Kainos is no exception. Shares in the FTSE 250 listed company surged after its full year update which was brimming with potential.

“Despite bookings being down due to weak demand in April that ‘growing sense of excitement’ around automation and AI gives investors plenty to get their teeth into.

“Businesses and public services alike are looking for ways to decrease costs and increase productivity and the NHS is no exception. Jeremy Hunt pledged billions in this year’s Budget to scale up the existing use of AI over the coming years, with Kainos expected to be a key beneficiary.”

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