Models, oil and supermarkets

Tuesday 8 December 2015

The headline index opened lower taking its cue from Asian markets which retreated following some discouraging trade data from China where the trade surplus for November was smaller than expected.

“Model railway and collectibles group Hornby (LSE:HRN) is seeing light at the end of the tunnel despite plunging into the red in the six months to the end of September,” says AJ Bell Investment Director Russ Mould.

“The group had teething problems with a new IT system which disrupted trading in the summer but it is doing well in the run-up to Christmas and has high hopes for the James Bond-inspired Scalextric ‘ Spectre’ sets. The group has brought forward the reorganisation plan for its European operations, which has contributed to further trading disruption but which accelerates the overall aim to transform the group.

“North Sea explorer EnQuest (LSE:ENQ) wooed investors with a bullish update. EnQuest unveiled a jump in second half output and is confident of growing production next year and is on course to achieve operating expenses of $26-$28 per barrel.

“Supermarket giants Sainsbury (LSE:SBRY) and Tesco (LSE:TSCO) headed the blue-chip board in early trading with Morrison’s (LSE:MRW) in close proximity while heavyweight miners Glencore (LSE:GLEN), BHP Billiton (LSE:BLT), Anglo American (LSE:AAL) and Rio Tinto (LSE:RIO) were clustered near the bottom of the index.

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