The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
SABMiller is trading at 3230 and it recently hit a new high for 2014. The company’s expansion in growth markets like Latin America and Africa is the driving force behind the share price growth. A common theme in the beverage sector is an underperforming European business. Poland and the Czech Republic account for roughly 70% of its European operation, and both nations have been reporting declines in profit.
The focus for Thursday’s announcement will be on how well its South American, Asian and African brands are performing. The businesses have been growing at 12%, 10% and 8% respectively. Growth markets will need to be strong if the company wants to keep takeover attempts at bay.
The stock is up 6.8% since it announced its third-quarter results in January. There has been speculation that Anheuser-Busch InBev will launch a takeover bid for SABMiller. Even if the figures on Thursday fail to impress traders, it could reignite acquisition rumours.
The stock is finding support at the 200-day moving average of 3058. If the full-year figures are good it may set the stock on a path towards to 3500.