Mitchells & Butlers edges up ahead of trading statement
The steady decline in the pub group’s shares goes on however, with no positive catalyst yet in sight.
Shares in Mitchells & Butlers (M&B) continue to decline, and have yet to find a reason to change that.
The most recent updates erred very much on the side of caution, with no sales guidance given at all, leaving investors all at sea.
Like many firms over the past year, a huge rally in the second half of 2020 and into 2021 has been followed by a drift lower - low in volatility but relentless in its nature. M&B is no exception. A summer bounce to 300p merely created a lower high as it hit the upper bound of the descending channel.
Ongoing speculation about new variants of Covid-19 and the fear that restrictions will return in the autumn/winter in some form continue to dog the sector, and it looks like M&B will have to keep on the cautious side of things to avoid the risk of overpromising and underdelivering.
Dip buyers might look for a bounce in the short-term into the trading statement, but the lifespan of such a bounce seems limited to the upper bound of the descending channel for the time being.
A daily close above 300p is needed to break the current pattern of lower highs and lower lows.
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