Common Music Group (UMG) shares virtually hit an all-time excessive on Friday, reaching 27.47 euros ($29.98) earlier than closing at 27.22 euros ($29.21), a 1% enhance for the week. That was near the height of 27.96 euros ($30.52) reached on Nov. 12, 2021, lower than two months after the corporate was spun off from Vivendi, and marked a brand new 52-week excessive. The 1% achieve adopted a 6.9% enchancment final week as buyers reacted to information that the corporate expects to put off workers within the first quarter.
If French music firm Imagine is taken non-public, as has been reported, shareholders would count on a premium over the latest share worth. That will clarify why the corporate’s share worth rose 13.5% to 10.18 euros ($11.11) this week — greater than offsetting the ten.5% decline Imagine shares skilled final week after information broke of the potential takeover. In response to a Reuters report, Imagine co-founder/CEO Denis Ladegaillerie and U.S. funding agency TCV have floated the thought to personal fairness companies.
The S&P 500 rose 1.2% to shut at a document excessive of 4,839.81 on Friday, surpassing the earlier peak set two years in the past. The Nasdaq didn’t set a document however fared even higher, climbing 2.3% to fifteen,310.97. Shares in different international locations didn’t match the beneficial properties in U.S. markets. In the UK, the FTSE 100 dropped 2.1% to 7,461.93. South Korea’s KOSPI composite index fell 2.1% to 2,472.74. China’s Shanghai Inventory Change Composite Index sank 1.7% to 2,832.28.
Music shares had been barely off final week’s document excessive regardless of Imagine’s double-digit achieve and the vast majority of music shares ending the week in optimistic territory. The 20-company Billboard World Music Index fell 0.4% to 1,559.48 this week, down barely from final week’s all-time excessive of 1,566.45. Twelve of the 20 shares had beneficial properties this week. Apart from Imagine’s takeover-related leap, the best-performing music shares had solely low, single-digit beneficial properties. MSG Leisure rose 4.1% to 33.48 and SiriusXM improved 4% to $5.42.
The index’s most respected corporations improved barely: Along with UMG’s 1% achieve, Spotify improved 0.8% to $204.71 and Dwell Nation climbed 0.6% to $91.18. These beneficial properties had been overshadowed by losses by radio big iHeartMedia, which fell 1.7% to $2.25, and three Asian corporations: HYBE, SM Leisure and Tencent Music Leisure.
The index’s greatest losers had been Okay-pop corporations HYBE and SM Leisure, which fell 10.9% and 10.3%, respectively. HYBE has been on a curler coaster in January, leaping 9.6% from Dec. 28 to Jan. 11 earlier than falling 14.1% over the following six buying and selling days. SM Leisure jumped 20.5% from the tip of December to Jan. 11 however has solely dropped 3.4% from its excessive level. One other massive mover this week was Chinese language music streamer Tencent Music Leisure, which dropped 9.5% to $8.51.
There was excellent news for all corporations on Friday when the intently watched College of Michigan’s Index of Client Sentiment jumped 13% in January, its highest stage since July 2021. During the last two months, client sentiment has risen 29% and People’ expectations for future inflation dropped to 2.9%. Client sentiment is now 60% above the all-time low from June 2022 however stays 7% under the historic common.
Music corporations will quickly announce earnings outcomes for the quarter ended Dec. 31. The primary corporations out of the gate are SiriusXM on Feb. 1 and Spotify on Feb. 6.
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