Charles Stanley says keep Unilever shares amid tough markets

23rd Oct 2014 13:39

Charles Stanley is advising investors to hold tight on Unilever shares for now after the Pot Noodle-to-Flora margarine group reported lower turnover due to currency volatility and said markets remained tough.Unilever said turnover fell 2% to €12.2bn including a negative currency impact of 2.6% as economic conditions continued to put pressure on consumers. Market growth slowed in emerging countries and particularly in China.Charles Stanley said Unilever's third-quarter results showed little change in the group's operating environment with market conditions remaining challenging - weak consumer demand, price deflation and an increasingly competitive retail environment.Foods and refreshment continued to weigh on performance while personal and home care products improved, albeit at a lower rate.The broker said: "Unilever has the ability to manage its cost base in difficult conditions and is doing so to underpin the group's financial performance. We have a 'hold'."Shares in Unilever fell 72p or 2.8% to 2462p at 13:38 in London.