Shares in Unilever surge to a record high after the
Anglo-Dutch consumer goods group reports a rise in sales that beats market
forecasts and leads the company's stock to the top of both Britain's FTSE 100
index and the pan-European FTSEurofirst 300 index.
Unilever's London-listed shares rise as much as 3 percent to an intraday
high of 2,522 pence in heavy volume of just under half its 90-day daily average
after less than an hour of trade. The stock later pares some of those gains and
is up by 2 percent at 2,501 pence by 0835 GMT.
"They've put in a stellar set of results. I will definitely be a buyer of
the stock but not at these levels, where it's looking overbought," says Hartmann
Capital trader Basil Petrides.
The relative strength index (RSI) reading of Unilever's London-listed shares
is currently at just above the 70 point mark, which indicates that a stock is
technically "overbought" and is often used by some traders as a sign to sell
that stock for a profit in the near term.
Petrides says he might buy the stock if it falls to between the 2,345-2,395
Oriel Securities keeps a "hold" rating on Unilever shares, arguing that
European rivals Nestle and Danone are expected to have
slightly faster earnings per share growth rates.
"Overall, re-rating potential appears limited. However, earnings growth is
clearly accelerating," Oriel Securities writes in a research note on Unilever.
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