Markets & Profit Warnings Both Up

Having fallen significantly during August and September, share prices around the world rebounded during October. In the UK, larger companies generally performed better than their medium-sized and smaller counterparts, with the FTSE 100 index up 4.9% over the month while the FTSE 250 index and the FTSE SmallCap index both climbed by 2.6%.

Several high-profile UK companies issued profit warnings during October, including FTSE 250 constituents Home Retail Group (the parent company of Homebase and Argos) and betting chain William Hill. The FTSE 100 did not remain unscathed either as publishing company Pearson and home improvement firm Travis Perkins also issued profit warnings.

October also saw the Government announce plans to sell shares in Lloyds Banking Group to private investors in the spring of 2016. The share sale is likely to be worth at least £2bn and applications worth less than £1,000 will be prioritised. Members of the public will be offered a 5% discount to the market price, and those who hold on to their shares for more than a year will receive one bonus share for every ten shares they own.

To discuss your own investment objectives and how investment risk may impact your portfolio please contact Stephen Groves on 0113 436 0110.