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Morning Report - 20 May 2021

Yesterday’s UK 100 Leaders Price (p) % Chg
FERGUSON PLC 9,472.0 2.2%
IMPERIAL BRANDS PLC 1,636.0 1.4%
POLYMETAL INTERNATIONAL PLC 1,694.0 1.2%
DCC PLC 6,050.0 1.0%
BT GROUP PLC 172.0 0.9%
Yesterday’s UK 100 Laggards Price (p) % Chg
ANGLO AMERICAN PLC 3154.0 -4.7%
BHP GROUP PLC 2138.0 -4.6%
ANTOFAGASTA PLC 1558.5 -3.4%
RIO TINTO PLC 6039.0 -3.4%
GLENCORE PLC 313.8 -3.3%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 6,950 -1.2% 15.8%
DOW JONES INDUS. AVG 33,745 -0.9% 39.5%
DAX INDEX 15,114 -1.8% 36.5%
NIKKEI 225 28,044 -1.3% 36.2%
S&P/ASX 200 INDEX 6,932 -1.9% 24.4%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 63.40 -3.19%
Brent Crude (ICE) USD/bbl. 66.68 -2.95%
Gold Spot USD/t oz. 1,870 0.0%
Copper (Comex) USd/lb. 456 -3.4%
UK 100 is called to open +45 points this morning at 6995. 

1 Day; 8 Months

Click graph to enlarge

Markets Overview:

 

UK 100 is called to open +45 points this morning at 6995.  A positive open is expected this morning following yesterdays volatility caused by a crash in the price of bitcoin before bouncing back later in the day, at one point the crypto currency fell below $30,000 before almost getting back above $40,000.  Elsewhere investor sentiment seemed caught between optimism over the economic reopening, and concerns over inflation and how it is being handling by the central banks. It was a mixed session stateside yesterday, the Dow Jones dropped 164 points or 0.48% to close Wednesdays session at 33,896 whilst the S&P ended 0.29% lower at 4,115. The Nasdaq was stronger, rallying to end the session only slightly lower for the day at 13,299 to cover almost all of the nearly 2% fall in early trading. In Asia this morning, the picture was equally mixed, Japan’s Nikkei rallied 102 points or 0.36% this morning to trade at 28,151 whilst Hong Kong’s Hang Seng was 175 points or 0.6% lower at 28,417. The Shanghai Composite index meanwhile dipped 0.23% to 3,503.

 

Company News & Broker Comments:

 

Company News:

 

EasyJet have said it would fly about 15% of its pre-pandemic schedule in Q3, with an expectation it would increase capacity from June onwards after posting a H1 loss of £701m. This was towards the upper end of its £690-730m loss guidance. 

Kingfisher have raised their H1 profit outlook as they continued to benefit from strong demand during the COVID-19 pandemic. They now expect their H1 adjusted pretax profit to be in the range of £580-600m.

 

National Grid says their FY underlying operating profit fell 5% to £3.3bn.

 

Royal Mail reports that their annual profit more than doubled on strong parcel volume as they were bolstered by a surge in parcel deliveries to locked-down customers who turned to online shopping. They reported a116% surge in adjusted operating profit to £702m and a 17% jump in revenue to £12.64bn. They have held back from providing forecast for fiscal 2022.

Broker Comments:

 

Berenberg Downgrades BT group to a Hold from Buy (9 Buys / 5 Holds / 1 Sell)

 

RBC Upgrades Natwest to Outperform from Sector perform (6 Buys / 11 Holds / 2 Sells)

 

Reporting Today:

 

Kingfisher

National Grid

QinetiQ

Royal Mail Group

Synthomer

Watches of Switzerland

Easyjet

 

 

Reporting Tomorrow:

 

Close Brothers

Investec

 

In Focus Today:

 

 

PBoC Interest Rate Decision

Japanese Imports

Japanese Exports

German Producer Price Index

BoE's Cunliffe speech

US Initial Jobless Claims

 

 

Today's Ex Dividends:

 

UK 100:

 

Tesco

Bunzl

GlaxoSmithKline

Unilever

Pershing Square Holdings

 

UK 250:

 

Morrison (Wm.) Supermarkets

Howden Joinery Group

Centamin

ContourGlobal

Brewin Dolphin Holdings

Civitas Social Housing

BlackRock Smaller Companies Trust

Bellway

Murray Income Trust

Witan Investment Trust

GCP Student Living

 

 

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