Reports suggest Shein has filed London IPO documents, Apple investors shrug off EU clamp down, mixed fortunes for China-related shares, Prudential soars on buyback and IBM lifted by broker note

“Hot on the heels of talk that Shein’s London IPO might have hit a brick wall, market chatter has done a U-turn with the suggestion that paperwork has been filed to get the listing over the line. Whether this is Shein’s advisers stoking the fire and trying to keep the embers burning, or solid news that the IPO is going ahead, only time will tell,” says Dan Coatsworth, Investment Analyst at AJ Bell.

“In one corner we’ve got pent-up demand from part of the investment community eager to own a slice of a disruptive force in the retail sector. Shein is expanding fast and plenty of investors want to own a business that is grabbing market share at a rapid pace.

“In the other corner are the naysayers, saying there are so many unanswered questions regarding its supply chain and business model.

“Theoretically, Shein listing in London should be good for the UK market and could attract other fast-growing names in e-commerce. London Stock Exchange would be shouting from the rooftops, saying it’s a real coup to get such a big name on the market. But in a world where investors demand transparency, high levels of governance and companies to be good corporate citizens, you have to wonder whether Shein will pass all the tests with flying colours.”

Apple

“Brussels accusing Apple of breaking EU competition rules has done nothing to worry investors in the iPhone maker. Apple’s shares nudged higher, perhaps with the market taking the view that interference from European regulators was already expected and any fine is simply paid and the company moves on.

“Tighter regulation in the big tech space has been on the cards for ages and it’s inevitable that when a select group of companies does so well over a long period, the authorities become nervous about market dominance. Apple might be the first but it is unlikely to be the last to be on the receiving end of criticism from the EU, so the market had better get used to these types of announcements.”

China-related Stocks

“It’s been a frustrating time to hold investments in China. Despite efforts by the Asian superpower to reignite strong economic growth, the market isn’t buying it and Chinese stocks have lagged most of the major equity indices in the West this year.

“The prospect of new government stimulus initiatives in China has historically been enough to reignite interest in the Asian market whenever there is a lull, but that catalyst seems to have lost all of its strength.

“We’re now in another tough patch for Chinese stocks and that caused ripples on the UK market in the form of share price declines during early trading on Monday for miners including Rio Tinto and Anglo American amid fears over commodities demand, as well as relevant geographic-themed investment trusts such as Fidelity China Special Situations whose shares went into reverse.

“However, the miners managed to break out of their funk with an afternoon rebound, in turn helping to give a late boost to the FTSE 100.”

Prudential

“Also helping the UK index was a stellar showing on the market from Asia-focused Prudential whose buyback news put a rocket under its share price. Whether that new-found momentum can be sustained beyond today is another matter as focus will soon return to the fundamentals of the business rather than how many shares it is repurchasing.

“Prudential seems confident about the future but the market previously didn’t share its enthusiasm given how the shares had been drifting downwards for more than 12 months prior to the buyback news.”

IBM

“The Dow Jones Industrial Average led the charge for US markets, propelled by IBM after Goldman Sachs talked up the stock in a research note. The investment bank said to buy the shares and investors have followed its instructions, driving up the price.

“IBM has enjoyed a better time on the stock market of late, having previously been stuck in a 120p to 140p trading range for years. A lot of people associate the brand with old-school technology but it seems there is still life in the business. It also helps there is an AI angle to get investors excited.”

These articles are for information purposes only and are not a personal recommendation or advice.