LIVE MARKETS-A grey British outlook might make short sellers grin

Reuters
07 Feb
LIVE MARKETS-A grey British outlook might make short sellers grin

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A GREY BRITISH OUTLOOK MIGHT MAKE SHORT SELLERS GRIN

A grey outlook for the British economy and finance minister Rachel Reeves' budget might make short sellers rub their hand as they eye a group of UK consumer-facing stocks, says AJ Bell.

According to the investment firm, well known stocks like Domino's Pizza DOM.L, DIY's multinational Kingfisher KGF.L and Pets at Home PETSP.L are among the favourite targets of short sellers, who bet that prices will fall.

"The UK outlook is getting worse by the day. Business and consumer sentiment is already weakening amid concerns that the new government doesn’t have an effective plan to accelerate economic growth," says Dan Coatsworth, an analyst at AJ Bell.

The list of stocks that investors are eager to see drop includes Sainsbury SBRY.L and Burberry BRBY.L, too.

They say the most shorted British stock is energy service provider Petrofac PFC.L, ABDN.L both have over 5% of their stocks shorted.

(Paolo Laudani)

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((Alun.john@thomsonreuters.com))

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