- Bank of England (BoE) Governor Andrew Bailey said the inflationary pressure building in the UK could lead to a rise in interest rates.
- The recent rise of energy prices due to shortage of lorry drivers and upsurge in international crude oil prices might push up the food inflation collectively contributing to rise in inflation.
Bank of England (BoE) Governor Andrew Bailey said the inflationary pressure building in the UK could lead to a rise in interest rates. BoE has already warned that inflation in the UK could reach 4% by the end of this year from the current level of 3.2%. Speaking at the Society of Professional Economists central bank chief reiterated the central bank statement published last week.
The recent rise in energy prices due to a shortage of lorry drivers and an upsurge in international crude oil prices might push up the food price in the last quarter of this year, collectively contributing to inflation during Christmas. As a result, the central bank’s monetary policy committee might take steps like a hike in interest rates or tapering its pandemic-led bond-buying program. As a result, the stock market may show volatile price movement in anticipation of a rate hike and ahead of policy meetings.
Let us look at 5 FTSE listed stocks and explore their investment prospects:
Greatland Gold Plc (LON: GGP)
The company operates in the exploration and production of base and precious metals. It carries out its mining activity through 100% owned mining projects located in Western Australia.
The company focuses on the exploration of diversified commodities for revenues generation and is increasing its emphasis on copper mining, which is at a multi-year high due to growing demand from the electric vehicles sector.
Greatland Gold Plc currently trades at GBX 16.25, up by 0.87% on 28 September 2021 at 8.50 am GMT+1 with a market cap of £638 million.
Marston’s Plc (LON: MARS)
FTSE All-Share listed company operates in the hospitality sector engaged in running pubs and bars. It also brews and sells alcoholic beverages through various brands.
The company could surprise with higher revenue and returns to shareholders following the opening of bars and pubs in the UK after 19 July. At present, the company is operating all its 1,500 pubs in the UK and has made additional investments to expand existing properties which could deliver higher sales to the company.
Marston’s Plc currently trades at GBX 81.15, down by 2.64% on 28 September 2021 at 8.50 am GMT+1 with a market cap of £528.56 million.
Barclays Plc (LON: BARC)
The financial institution offers various financial products and services to individuals and corporate clients. It has operations in over 50 countries globally.
The company is currently undertaking its £500 million share buyback program. It is one of the leading financial companies that distribute dividend and carry out share buyback regularly. After lifting regulatory restrictions on dividend pay-out, the bank declared a dividend of 2p per share and plans to pay regular dividends in the future as well besides the share buyback program. The company’s current dividend yield stands at 3.2% as of 28 September 2021.
Barclays Plc currently trades at GBX 186.74, down by 0.55% on 28 September 2021 at 8.50 am GMT+1 with a market cap of £31,649 million.
Touchstone Exploration Inc (New) (LON: TXP)
The Canadian-based company operates in the exploration of oil and gas resources. It has an onshore oil production site in the Republic of Trinidad and Tobago.
The company continues to perform well, supported by the rise in international crude oil prices. It reported average daily oil production of 1,297 barrels per day for the three months ended 31 March 2021. In addition, the company was able to reduce its operational losses. The consistent rise in crude oil and natural gas prices might boost its revenue and profitability in the coming quarters, benefiting its share price.
Touchstone Exploration currently trades at GBX 101.0, down by 1.46% on 28 September 2021 at 8.50 am GMT+1 with a market cap of £216 million.
Synairgen Plc (LON: SNG)
The company does research and development of a respiratory drug to treat asthma and COPD. It uses differentiating human biology BioBank platform and KOL network to deliver therapies.
The company is currently in the growth phase conducting research and development work on different medicine, including inhale therapies to treat Covid-19 patients. At present, it is carrying out clinical trials for Covid-19 medicines. Any breakthrough medicine backed by a successful clinical trial will benefit the company’s profitability.
Synairgen Plc currently trades at GBX 168.80, up by 1.69% on 28 September 2021 at 8.50 am GMT+1 with a market cap of £334.23 million.