Purveyors of luxury and indulgence flirted with record stock market valuations last week as investors looked past a litany of bad economic figures and the eurozone debt crisis to focus on the fundamentals.
Dealers said successful share floats for such fashion icons as Prada in Hong Kong — a key market for investors and buyers alike — and Salvatore Ferragamo in Milan boosted interest and offered the prospect of further gains.
Asia shines like a beacon for the companies, where a fast growing middle class is chasing the good life as emerging economies in China, India and across the region throw off wealth as never before.
Upcoming first half results are also expected to be stellar, with many expecting an exceptional performance from the likes of LVMH, which runs a stable of global brand names from perfumes to wines and champagne.
'2011 could be a record year in regards to margins, sales and share prices,' Francois Arpels, chief executive at investment bank Bryan Garnier said.
The sector does look promising. According to consultancy Bain & Company, the global market for luxury goods and services should grow by eight per cent this year, pushed by 25 per cent gains in China and 15 per cent in the rest of the Asia Pacific.
Source : New Age
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