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Morning Report - 24 February 2022

Yesterday’s UK 100 Leaders Price (p) % Chg
HIKMA PHARMACEUTICALS PLC 2,013.0 3.4%
BARCLAYS PLC 196.0 3.1%
HARGREAVES LANSDOWN PLC 1,122.5 2.5%
ANTOFAGASTA PLC 1,439.5 2.4%
SMITH & NEPHEW PLC 1,296.0 2.3%

 

Yesterday’s UK 100 Laggards Price (p) % Chg
EVRAZ PLC 246.0 -12.6%
KINGFISHER PLC 295.6 -5.6%
ROYAL MAIL PLC 390.0 -3.0%
JD SPORTS FASHION PLC 155.9 -3.0%
CRH PLC 3465.0 -2.9%

 

Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,498 0.1% 12.6%
DOW JONES INDUS. AVG 33,132 -1.4% 3.7%
DAX INDEX 14,631 -0.4% 4.7%
NIKKEI 225 25,971 -1.8% -13.9%
S&P/ASX 200 INDEX 6,991 -3.0% 3.1%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 97.58 5.95%
Brent Crude (ICE) USD/bbl. 102.86 6.22%
Gold Spot USD/t oz. 1,943 1.8%
Copper (Comex) USd/lb. 449 0.1%

 

The UK 100 is called to open -270 points today at 7234.

1 Day; 12 Months

Click graph to enlarge

Markets Overview:

 

The UK 100 is called to open -270 points today at 7234.  The UK's blue-chip index looks set to slump in early trades after Russia launched what seems to be a full-scale invasion of Ukraine.  Russian President Vladimir Putin announced the military action at 5.55am Russian time, which was followed almost immediately by shelling and missile strikes said reports from the country.  The reports said there had also been cruise missile attacks on the Ukraine capital Kyiv and further troop mobilisation in the east, on the northern border from Belarus and also in the south.  Oil prices surged to over $100 a barrel, while gold moved above $1,910 an ounce with heavy falls in equity markets in the US and also across Asia, this saw Japan’s Nikkei 225 fell 1.81% and South Korea’s Kospi declined 2.61%.  The Shanghai Composite in China slipped 1.90% while Hong Kong’s Hang Seng index slumped 3.03%.

 

 

Company News & Broker Comments:

 

Company News:

 

Anglo American report FY underlying EBITDA of $20.63bn (2020: $9.8bn) with a FY dividend per share of $4.99 (up from $1.00 previously).

 

 

BAE Systems reports a FY21 pretax profit of £2.11bn (2020: £1.6bn) with a final dividend of 15.2p, bringing the FY total to 25.1p.

 

 

Centrica report a 2021 pretax profit of £767m (2020: £577m loss) with total customers up to 10.07m from 9.79m YoY.

 

 

Hikma Pharmaceuticals reports a 2021 pretax profit of $544m (2020: $558m). Their FY dividend has been increased to 54 cents per share (up from 50 cents previously).

 

 

Lloyds reported pretax profits of £6.9bn for 2021, below the £7.2bn average of analyst forecasts. They will buy back £2bn of its own shares and pay a final dividend of 1.33p per share. The profit miss was largely down to huge charges for past misdeeds of £1.3bn, including an additional £600m for payouts and costs related to historic fraud at its HBOS Reading branch.

 

 

Rolls-Royce said it expected to return to positive cash flow in 2022, after it reported better-than-expected reduction in its cash burn in 2021.

 

 

WPP have announced a £800m share buyback for 2022 after it said an "outstanding" year had enabled it to meet recently upgraded forecasts for 2021 net sales. Its main net sales metric (like-for-like revenue less pass-through costs) had risen 12.1% in 2021. It forecast around 5% growth for 2022.

Broker Comments

 

Berenberg Downgrades Hargreaves Lansdown to Hold from Buy (6 Buys / 3 Holds / 3 Sells)

 

 

RBC Upgrades Fresnillo to Outperform from Sector Perform (3 Buys / 11 holds / 0 Sells)

 

 

Reporting Today:

 

Anglo American

 

Aston Martin Lagonda

 

BAE Systems

 

Centica

 

Derwent London

 

Drax Group

 

Genus

 

Hays

 

Hikma Pharmaceuticals

 

Howden Joinery

 

Inchcape

 

Lloyds Bank

 

Morgan Sindall

 

Rathbone Brothers

 

Rolls Royce

 

Serco Group

 

Spectris

 

St James' Place

 

WPP Group

 

 

Reporting Friday:

Evraz

 

Grafton Group*

 

Greencoat UK Wind

 

IMI

 

International Consolidated Airlines

 

Jupiter Fund Management

 

Pearson

 

Rightmove

 

 

 

 

In Focus Today:

 

Chicago Fed National Activity Index

 

US Initial Jobless Claims

 

US New Home Sales

 

 

 

This morning's Ex-Dividends:

 

FTSE 100:

Diageo

 

GlaxoSmithKline

 

AstraZeneca

 

Unilever

 

Standard Chartered

FTSE 250:

Dunelm Group

 

Redrow

 

Witan Investment Trust

 

Plus500

 

BBGI Global Infrastructure S.A.

 

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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