The Investor Sentiment - Equity and investments forum for Sri Lankans



Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans

The Investor Sentiment - Equity and investments forum for Sri Lankans

Would you like to react to this message? Create an account in a few clicks or log in to continue.
The Investor Sentiment - Equity and investments forum for Sri Lankans

The Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSEThe Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSE

Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting

Latest topics

» CIFC Dumps to Expand Your Possibilities to Pass Your Exam
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyFri Jul 19, 2024 10:30 am by faithhharris

» CCS.N0000 ( Ceylon Cold Stores)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Mar 20, 2024 11:31 am by Hawk Eye

» Sri Lanka plans to allow tourists from August, no mandatory quarantine
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Sep 13, 2023 12:16 pm by lauryfriese

» When Will It Be Safe To Invest In The Stock Market Again?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Apr 19, 2023 6:41 am by කිත්සිරි ද සිල්වා

» Dividend Announcements
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Apr 12, 2023 5:41 pm by කිත්සිරි ද සිල්වා

» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyThu Apr 06, 2023 3:18 pm by කිත්සිරි ද සිල්වා

» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්‍රතික්ෂේප කළ ගණිතඥයා
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Apr 02, 2023 7:28 am by කිත්සිරි ද සිල්වා

» SEYB.N0000 (Seylan Bank PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyThu Mar 30, 2023 9:25 am by yellow knife

» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyThu Mar 30, 2023 9:25 am by HaeroMaero

» The Korean Way !
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Mar 29, 2023 7:09 am by කිත්සිරි ද සිල්වා

» In the Meantime Within Our Shores!
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyMon Mar 27, 2023 5:51 pm by කිත්සිරි ද සිල්වා

» What is Known as Dementia?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyFri Mar 24, 2023 10:09 am by කිත්සිරි ද සිල්වා

» SRI LANKA TELECOM PLC (SLTL.N0000)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyMon Mar 20, 2023 5:18 pm by කිත්සිරි ද සිල්වා

» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyMon Mar 20, 2023 5:10 pm by කිත්සිරි ද සිල්වා

» Equinox ( වසන්ත විෂුවය ) !
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyMon Mar 20, 2023 4:28 pm by කිත්සිරි ද සිල්වා

» COMB.N0000 (Commercial Bank of Ceylon PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Mar 19, 2023 4:11 pm by කිත්සිරි ද සිල්වා

» REXP.N0000 (Richard Pieris Exports PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Mar 19, 2023 4:02 pm by කිත්සිරි ද සිල්වා

» RICH.N0000 (Richard Pieris and Company PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Mar 19, 2023 3:53 pm by කිත්සිරි ද සිල්වා

» Do You Have Computer Vision Syndrome?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySat Mar 18, 2023 7:36 am by කිත්සිරි ද සිල්වා

» LAXAPANA BATTERIES PLC (LITE.N0000)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyThu Mar 16, 2023 11:23 am by කිත්සිරි ද සිල්වා

» What a Bank Run ?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Mar 15, 2023 5:33 pm by කිත්සිරි ද සිල්වා

» 104 Technical trading experiments by HUNTER
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Mar 15, 2023 4:27 pm by katesmith1304

» GLAS.N0000 (Piramal Glass Ceylon PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Mar 15, 2023 7:45 am by කිත්සිරි ද සිල්වා

» Cboe Volatility Index
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyTue Mar 14, 2023 5:32 pm by කිත්සිරි ද සිල්වා

» AHPL.N0000
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Mar 12, 2023 4:46 pm by කිත්සිරි ද සිල්වා

» TJL.N0000 (Tee Jey Lanka PLC.)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Mar 12, 2023 4:43 pm by කිත්සිරි ද සිල්වා

» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Mar 12, 2023 4:41 pm by කිත්සිරි ද සිල්වා

» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyFri Mar 10, 2023 4:43 pm by yellow knife

» Bitcoin and Cryptocurrency
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyFri Mar 10, 2023 1:47 pm by කිත්සිරි ද සිල්වා

» CSD.N0000 (Seylan Developments PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyFri Mar 10, 2023 10:38 am by yellow knife

» PLC.N0000 (People's Leasing and Finance PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyThu Mar 09, 2023 8:02 am by කිත්සිරි ද සිල්වා

» Bakery Products ?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Mar 08, 2023 5:30 pm by කිත්සිරි ද සිල්වා

» NTB.N0000 (Nations Trust Bank PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Mar 05, 2023 7:24 am by කිත්සිරි ද සිල්වා

» Going South
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySat Mar 04, 2023 10:47 am by කිත්සිරි ද සිල්වා

» When Seagulls Follow the Trawler
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyThu Mar 02, 2023 10:22 am by කිත්සිරි ද සිල්වා

» Re-activating
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySat Feb 25, 2023 5:12 pm by කිත්සිරි ද සිල්වා

» අපි තමයි හොඳටම කරේ !
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyTue Feb 14, 2023 3:54 pm by ruwan326

» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyTue Jan 03, 2023 6:43 pm by ruwan326

» SAMP.N0000 (Sampath Bank PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Nov 30, 2022 8:24 am by කිත්සිරි ද සිල්වා

» APLA.N0000 (ACL Plastics PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyFri Nov 18, 2022 7:49 am by කිත්සිරි ද සිල්වා

» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyWed Nov 16, 2022 9:28 pm by කිත්සිරි ද සිල්වා

» Banks, Finance & Insurance Sector Chart
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyTue Nov 15, 2022 5:26 pm by කිත්සිරි ද සිල්වා

» VPEL.N0000 (Vallibel Power Erathna PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySun Nov 13, 2022 12:15 pm by කිත්සිරි ද සිල්වා

» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyMon Nov 07, 2022 6:36 pm by කිත්සිරි ද සිල්වා

» WATA - Watawala
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySat Nov 05, 2022 8:44 am by කිත්සිරි ද සිල්වා

» KFP.N0000(Keels Food Products PLC)
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptySat Nov 05, 2022 8:42 am by කිත්සිරි ද සිල්වා

» Capital Trust Broker in difficulty?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyFri Oct 21, 2022 5:25 pm by කිත්සිරි ද සිල්වා

» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyThu Oct 20, 2022 10:13 am by කිත්සිරි ද සිල්වා

» What Industry Would You Choose to Focus?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyTue Oct 11, 2022 6:39 pm by කිත්සිරි ද සිල්වා

» Should I Stick Around, or Should I Follow Others' Lead?
INVESTMENT FOCUS-European food stocks to savour weak grain prices EmptyTue Oct 11, 2022 9:07 am by කිත්සිරි ද සිල්වා

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

2 posters

    INVESTMENT FOCUS-European food stocks to savour weak grain prices

    First Guy
    First Guy


    Posts : 2599
    Join date : 2014-02-22

    INVESTMENT FOCUS-European food stocks to savour weak grain prices Empty INVESTMENT FOCUS-European food stocks to savour weak grain prices

    Post by First Guy Sat Jul 12, 2014 2:26 pm

    * Nestle, ABI, SAB Miller, Danone seen as beneficiaries
    * Wheat prices near 4-month lows, corn prices also falling
    * Lower input costs seen as benefiting European food stocks
    * Datastream shows link between lower prices and shares
    * Food stocks often favoured in times of market uncertainty

    By Sudip Kar-Gupta

    LONDON, July 11 (Reuters) - Food group Nestle, rival Danone and brewers Anheuser-Busch InBev and SAB Miller are among major European food shares tipped for a stock market boost from a drop in commodity prices.

    Agricultural commodity prices are down for the third month in a row on prospects for better crops, according to the United Nations' food agency, which said on Friday that the outlook for world food inflation looks lower and more stable as prices settle over the next decade after years of volatility.

    While it is difficult to quantify the direct impact on companies from the recent drop in the price of staples such as sugar, wheat and corn, some analysts expect on average a one-percent earnings increase for top consumer firms that save money on raw material costs when commodities are cheap.

    "For brewers such as ABI, the lower wheat price is a good thing. It would benefit Nestle as well in the sense of lower input costs while Danone would benefit from falling dairy prices," said Andrea Williams, European equities fund manager at Royal London Asset Management.

    "All of them would benefit to varying degrees."

    U.S. and European wheat prices have fallen to near 4- to 5-month lows, and corn futures have also declined on expectations of bumper harvests. International milk prices - important for Danone - have shown signs of slipping back from highs.

    Sugar prices have also weakened, but while this has hurt sugar producers such as Associated British Foods' AB Sugar unit and sugar producer Suedzucker, the broader backdrop of lower prices is expected to benefit European food stocks.

    Thomson Reuters Datastream graphics show how falls in the price of wheat and corn can often herald a positive change in fortune for the shares of European food stocks.

    POSITIVE SENTIMENT

    The companies themselves gave few details on the impact: Nestle said "short-term fluctuations" in commodity markets did not affect the prices of its products, while Danone said it expected "volatility" in the medium term after reporting in April that sales growth had been dented by higher milk prices.

    Companies aim to protect themselves against swings in commodity prices by measures including tailored procurement strategies and cost cutting.

    Nestle, for example, has in the past changed recipes, altered packaging formats or simply raised prices to deal with periods of high raw-materials price inflation such as in 2007-2008, according to Yasmina Barin, an analyst at Swiss bank SYZ.

    Even if this makes it hard to calculate the overall impact of falling commodity prices on a company such as Nestle, which is exposed to markets ranging from coffee and cocoa to wheat and corn, Bank Vontobel analyst Jean-Philippe Bertschy said it would support investor sentiment on the stock.

    Shares in Nestle, Danone, ABI and SAB Miller have all been steady over the last two months, but analysts said they were now well poised to move higher.

    "We're positive on the food sector and lower input costs would certainly provide an extra support for them," said Sunrise Brokers' equity strategist Christopher Mellor. (additional reporting by Vikram Subhedar; Editing by Jamie McGeever/Ruth Pitchford)

    http://www.reuters.com/article/2014/07/11/europe-markets-idUSL6N0PE54I20140711
    avatar
    serene
    Top contributor
    Top contributor


    Posts : 4850
    Join date : 2014-02-26

    INVESTMENT FOCUS-European food stocks to savour weak grain prices Empty Re: INVESTMENT FOCUS-European food stocks to savour weak grain prices

    Post by serene Sat Jul 12, 2014 4:27 pm

    Thanks FG. Will this have a effect on here.

      Current date/time is Sat Nov 02, 2024 2:12 pm