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Morning Report - 19 January 2022

Yesterday’s UK 100 Leaders Price (p) % Chg
DCC PLC 6,482.0 3.3%
BT GROUP PLC 186.6 3.1%
PEARSON PLC 632.4 2.7%
PHOENIX GROUP HOLDINGS PLC 701.4 2.2%
VODAFONE GROUP PLC 121.5 2.2%
Yesterday’s UK 100 Laggards Price (p) % Chg
ASHTEAD GROUP PLC 5454.0 -5.0%
RIGHTMOVE PLC 658.6 -4.6%
UNILEVER PLC 3516.5 -4.0%
DS SMITH PLC 380.5 -3.8%
JD SPORTS FASHION PLC 189.1 -3.5%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,564 -0.6% 12.5%
DOW JONES INDUS. AVG 35,377 -1.5% 14.8%
DAX INDEX 15,773 -1.0% 13.9%
NIKKEI 225 28,257 -0.3% -1.3%
S&P/ASX 200 INDEX 7,409 -0.1% 9.9%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 85.17 1.61%
Brent Crude (ICE) USD/bbl. 87.23 0.87%
Gold Spot USD/t oz. 1,814 -0.3%
Copper (Comex) USd/lb. 440 -0.5%

 

The UK 100 is called to open -40 points today at 7525.

1 Day; 12 Months

Click graph to enlarge

Markets Overview:

 

The UK 100 is called to open -40 points today at 7525.  The UK 100 is set to open lower on Wednesday, following US and Asian benchmarks as inflation continues to concern investors.  Today sees, CPI numbers for both the UK and Germany.  Last night on Wall Street, the Dow Jones fell 543 points or 1.51% to close at 35,368.  The S&P gave up 1.84% to 4,577 and the Nasdaq dropped further, falling 2.6% to finish at 14,506. Meanwhile, the small-cap focussed Russell 2000 index was down a little more than 3% to 2,096.  Asia markets fell this morning, as oil prices rose for a fourth day to a seven-year high amid worrisome geopolitical troubles in Russia and the United Arab Emirates.  The Nikkei in Japan plunged 2.80% and South Korea’s Kospi moved 0.75% lower.  China’s Shanghai Composite fell 0.53% while Hong Kong’s Hang Seng index dipped 0.40%.

 

Company News & Broker Comments:

 

Company News:

Antofagasta reports FY copper production decreased 1.7% whilst FY gold production increased 24%.

 

 

BHP Group reported a 5% rise in iron ore production for Q2, driven by strong performance at its Jimblebar mine and ramped up production at South Flank in Western Australia. Iron ore production was 73.9m tonnes in the three months ended December, up from 70.4m tonnes a year ago.

 

 

Burberry state growth in its full-price sales accelerated in Q3, driven by a strong performance in outwear and leather goods, with a material improvement in Asia and Europe. Full price comparable store sales were 26% higher than the same period two years ago.

 

 

Centamin report Q4 gold output +58%, Q4 gold sold +26% and Q4 revenue +22%. FY gold production was down 8%, FY gold sold -13% and FY revenue -12%.

 

 

Crest Nicholson swings to a FY pretax profit of £86.9m (2021: £13.5m) and they propose a final dividend of 9.5p, taking total dividend to 13.6p per share. They plan to enhance profit through margin rate accretion and enhance profitability through volume growth.

 

 

Galliford Try report that H1 trading is in line with expectations.

 

 

JD Wetherspoon warned it would record a loss for the first half of the fiscal year after the Omicron variant led to renewed curbs and kept people from heading out during the holidays. Like-for-like sales fell 11.7% in the 25 weeks to Jan 16th, with Q2 sales hurt by restrictions imposed by Britain in December.

 

 

Broker Comments

 

Bank of America Downgrades Hammerson to Underperform from Neutral (1 Buy / 8 Holds / 4 Sells)

 

 

Goldman Sachs Downgrades ASOS to Neutral from Buy (10 Buys / 12 Holds / 0 Sells)

 

 

JP Morgan Upgrades Segro to Overweight from Neutral (6 Buys / 9 Holds / 1 Sell)

 

 

RBC Downgrades Smiths Group to Sector Perform from Outperform (3 Buys / 4 Holds / 0 Sells)

 

 

 

Reporting Today:

 

Antofagasta

 

BHP Group

 

Burberry Group

 

Centamin

 

Crest Nicholson

 

Diploma

 

Liontrust Asset Management

 

 

Reporting Tomorrow:

 

 

AJ Bell

 

Associated British Foods

 

Ibstock

 

Premier Foods

 

Workspace Group

 

 

 

In Focus Today:

 

 

UK Consumer Price Index

 

UK Retail Price Index

 

German Harmonized Index of Consumer Prices

 

Housing Starts

 

Japanese Imports/Exports

 

 

Tomorrow's Ex-Dividends:

 

FTSE 100:

Compass Group

 

FTSE 250:

Diploma

Games Workshop Group

 

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.


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