Market report: FTSE 100’s stock to watch DCC reports resilient trading
It’s the FTSE 100 stock most investors couldn’t name, and yet DCC probably deserves greater recognition after finding a way through the Covid-19 crisis.
The £7 billion-valued conglomerate, which is a hotchpotch of different companies in liquid gas, oil, healthcare and tech, impressed again today after its latest update showed that trading had been better than it expected back in May.
Strong demand in the agriculture sector and from homebound customers firing up the BBQ ensured that its retail and oil division performed well. Boss Donal Murphy described overall trading as resilient in the face of significant challenges.
Investors-in-the-know love the company as an income play, with DCC boasting an unbroken record of dividend growth over its 26 years on the stock market.
The conglomerate’s shares eased 66p to 6998p today, having surged from below 4000p in March.
Analysts at Jefferies reckon they have the potential to be 7750p, with the stronger second half of the financial year still to come.
The FTSE 100 index, meanwhile, was heading for its first weekly gain in a month as hopes grow for a Covid-19 vaccine.
It was 2.28 points higher at 6,252.97 today, with shares in Premier Inn owner Whitbread among the biggest fallers, down 67p at 2277p..
Asset manager Ninety-One rose 2% to 224p after it said that assets had grown to £118 billion at the end of June from £103 billion in March.
Among smaller stocks, Wey Education surged 10% to 25.6p after it said trading had been stronger than expected, driven by its strong position in the online sector.
Small-cap spotlight
Football website 101GreatGoals.com had transfer news of its own today. The live streaming and betting tips site, set up in 2006, is now under the full ownership of digital publisher XLMedia after 101’s founders sold their remaining stakes.
AIM-listed XL is planning a push to grow and monetise the site’s traffic, with a particular focus on the European football audience and sizeable US soccer market. XL shares rose 4% to 26.3p.