As­ton Martin’s price con­tin­ues to skid

The Daily Telegraph - Business - - Business - TOM REES

AS­TON MARTIN in­vestors were shaken and stirred by scrib­blers at Jef­feries hand­ing the stock mar­ket new­bie a thumbs down in its first ex­am­i­na­tion by the City.

Nearly £900m has now been wiped off the James Bond car­maker since its flota­tion last week.

With many City banks tied up in the year’s most an­tic­i­pated IPO in Lon­don, Jef­feries was the first to de­liver its ver­dict, giv­ing the com­pany an “un­der­per­form” rat­ing.

Jef­feries told clients that the “high pric­ing” of the IPO and a short six-month lock-up pe­riod be­fore in­sid­ers can sell their shares may leave in­vestors with a “sour taste”.

Given that “You Only IPO Once”, an­a­lyst Philippe Hou­chois ar­gued that As­ton Martin should have raised money to ad­dress liq­uid­ity con­cerns rather than just pro­vid­ing its own­ers with an exit.

It is “ef­fec­tively” us­ing de­posits from cus­tomers for its day-to-day fund­ing and should raise debt to give it­self a buf­fer, he ar­gued.

As­ton Martin ex­tended its slide fol­low­ing the gloomy note, suf­fer­ing its worst day since the IPO. The car­maker dropped a fur­ther 113p to £14.97, a 7pc plunge. Else­where,

Rev­o­lu­tion Bars flirted with a 15-month low after snub­bing a sec­ond ap­proach from night­club owner Deltic.

Peel Hunt an­a­lyst Dou­glas Jack ques­tioned “the depth and in­ten­sity” of the rekin­dled takeover talks and said its man­age­ment must now de­liver pos­i­tive like-for-like sales growth after break­ing off talks.

He ar­gued that Rev­o­lu­tion will have “to per­form very strongly to re­coup this loss of po­ten­tial share­holder value” as ditch­ing a deal means “los­ing po­ten­tial syn­er­gies and scale”. It nose­dived 12p to 115p.

Fund su­per­mar­ket Har­g­reaves

Lans­down plunged 97.5p to £18.60 after warn­ing of an “in­dus­try-wide slow­down” in an up­date to in­vestors.

Ja­camo owner N Brown dropped 27.5p to 111p, a 20pc slide, after cut­ting its in­terim div­i­dend.

A rout on Wall Street, reignited by fears of climb­ing bor­row­ing costs in the US, spread across stock mar­kets around the world. The FTSE 100 suf­fered a sec­ond cor­rec­tion of the year after rack­ing up a fifth loss of more than 1pc in a week. The in­dex plunged 138.81 points to 7,006.93, a 1.9pc tum­ble, amid a global re­treat into safe haven as­sets.

Brent crude plunged 2.9pc to less than $81 per bar­rel, while gold prices surged 2.6pc to hit a two-month high as risk ap­petite re­ceded. Gold min­ers

Fres­nillo and Rand­gold Re­sources ben­e­fited from the flight to safety, how­ever, jump­ing 66.8p to 839p and 440p to £57.06 re­spec­tively.

Fer­gu­son, the plumbers mer­chant for­merly known as Wolse­ley, also bucked the down­ward trend, ris­ing 98p to £55.67 as traders de­cided the stock is over­sold de­spite a down­grade from Liberum. Its shares were trad­ing above £65 at the start of the month be­fore it warned of slow­ing growth.

The FTSE 100’s bank­ing and oil heavy­weights bore the brunt of the sell-off in Lon­don. HSBC tum­bled 23.4p to 630.1p, its low­est level in 18 months, while BP shares shed 14.8p to 554.4p.

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