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Weekly Report
The weekly report is published on Fridays to all newsletter subscribers. The report comprises of three articles which will provide you with our analysis of the markets. The report also includes three trade recommendations picked by our Research Team. This report is available for free to non-Blue Index clients, all you need to do is create a Member account in order to receive this report directly to your inbox every week.
Part 1 of 2: The Pharmaceuticals Sector
This week we take a look at some of the issues facing the important pharmaceutical sector, which has had mixed fortunes in recent years. On the one hand, concerns over the lack of pipeline depth and recent trial failures have led to sustained underperformance by many of the majors. Yet there are plenty of gems around, as witnessed by the stunning rise in shares of Medimmune, which we tipped twice in the last month and was recently bid for by Astra Zeneca giving clients of Blue Index another ‘trade of the year’ and a 50% profit in a matter of weeks.
Focusing in on the chemical sector
After our recent report on UK banks which highlighted profitable opportunities in that exciting sector, we turn our attention to another perhaps lesser known area where there are many opportunities for CFD traders. The chemical sector, like the financials, is undergoing a bout of rationalisation which involves many of the big players, and this brief report gives the background to the companies involved, why the sector is attractive, and technical targets for three stocks.
M&A fever hits global stock markets
Perhaps most striking this week, though, is J. Sainsbury where the CVC-led group backed off to follow Texas Pacific, Blackstone and KKR, who pulled out of bidding on competition and price concerns. It would appear the Sainsbury family, who own 18% of the shares, were looking for 600p as a starting offer, and were against the debt-laden structure of the proposed bids.
Gulf trouble causes small market stumble, Barclays - predator or prey? Quick recovery for Tate & Lyle
As the news of the merger between Barclays and ABN Amro came out, the initial reaction to what looked like a takeover was to mark down the British bank’s shares. This didn’t last long and in the following four days the price rose 15% as traders speculated whether it could turn out to be another RBS/Nat West or Abbey National/Banco Santander winner.
The bull market that won't give in
Last week we talked about the potential for a snapback rally and what sort of clues that might give as to where markets are heading. Using the Dow as our reference point, we saw four days of rises on steadily falling volume until Tuesday, and the final peak exactly hit the spike high from day two of the ‘crash’ two weeks before.
