Questor: the Ukraine war has decimated Polymetal’s worth – here’s what we’ll do

In the meantime, further share price volatility is extremely likely while events in Ukraine remain highly fluid. In Questor’s view, Polymetal’s share price has fallen to such an extent since our original recommendation that investors should hold and await further developments (of course, this does not factor in an ethical standpoint that, for some investors, will understandably override any thoughts of owning a firm that operates mostly in Russia). Hold.

Questor says: hold

Ticker: POLY

Share price at close: 92.02p

Update: Glencore

While the war in Ukraine has prompted highly disappointing returns from some shares, sentiment towards other stocks has improved. For example, shares in the diversified commodities firm Glencore have gained 21pc since our buy tip in January; this is 28 percentage points greater than the FTSE 100’s return. Its performance has been aided by buoyant commodity prices.

Although Glencore does not have any operations in Russia, it owns equity stakes in Russian companies Rosneft and En+. It is currently deciding what to do with them and is likely to make a further announcement soon.

This column’s long-term view of the firm has not changed since our review in January. Its plan to move towards metals likely to be in high demand as the world shifts to a low-carbon economy, such as nickel and copper, should put it in a strong position to improve profits. Moreover, supply issues could cause commodity prices to remain high over the coming years.

Glencore’s forecast price-to-earnings ratio of 7 suggests it still offers a margin of safety despite its recent share price rise. Holding it as part of a diversified portfolio continues to be a sound plan. Hold.

Questor says: hold

Ticker: GLEN

Share price at close: 476.2p

Update: BP

The oil major announced on Feb 28 that it would dispose of its stake of nearly 20pc in Rosneft. The holding accounted for around 17pc of the firm’s pre-tax profits in the 2021 financial year. As a result, the disposal is likely to have a significant impact on BP’s financial future – especially since it is not yet clear how much it will receive for the stake and from whom.

The recent oil price rise has boosted the firm’s financial prospects. Indeed, factors such as high inflation and the prospect of more limited oil supply thanks to geopolitical challenges have created buoyant operating conditions for the wider oil and gas sector.

A boost in profitability is likely to improve BP’s capacity to transition towards low-carbon assets in the coming years. According to its latest update, it is making encouraging progress in this area and expects 40pc of capital expenditure to be focused on its transition growth businesses, such as renewables, by 2025.

Since our buy tip in August 2021, the company’s share price has gained 28pc versus a 3pc decline for the FTSE 100. Although share price volatility is likely to remain elevated, its long-term investment prospects continue to be favourable when the stock is held as part of a diversified portfolio. Hold.

Questor says: hold

Ticker: BP

Share price at close: 380p

Read the latest Questor column on every Sunday, Tuesday, Wednesday, Thursday and Friday from 5am.

Read Questor’s rules of investment before you follow our tips.

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