Tue, 20th Aug 2019
AstraZeneca enjoyed a strong day of trading, with shares increasing by 1.7%, up to £74.04, as the market digested the news that the company’s Farxiga drug had successfully demonstrated potential for reducing the risk of death by heart attack in diabetics.
The result was viewed by analysts as an example of how AstraZeneca has several strong potential new products in its pipeline. The strength of AstraZeneca’s pipeline has been a key reason that analysts have continued to rate the company so highly, and the recent re-iteration of the ‘buy’ stance helped to boost shares significantly, as the markets remain confident that the company has a strong future.
At the opposite end of the spectrum, shares in BHP Group were down by 16, after the company issued a warning that economic headwinds could be reducing demand for copper and iron ore. BHP has been streamlining its business over recent years, and has been paying attention to stripping out a lot of the greater costs faced by the business. The current negative backdrop suggests that BHP may struggle to keep growing at its current rate, especially in the short term.
Persimmon’s shares were also weak, as investors became concerned about the company’s reduced pre-tax profits in its latest update. The company says that their average selling price had actually increased, but that they were investing £15 million in improving customer care. Cost pressures, however, are likely to remain a headwind for the rest of the year.