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Morning Report - 25 February 2022

Yesterday’s UK 100 Leaders Price (p) % Chg
BAE SYSTEMS PLC 631.8 5.2%
FRESNILLO PLC 715.8 4.0%
DECHRA PHARMACEUTICALS PLC 3,900.0 1.8%
ANGLO AMERICAN PLC 3,595.0 1.8%
HALMA PLC 2,255.0 0.9%
Yesterday’s UK 100 Laggards Price (p) % Chg
POLYMETAL INTERNATIONAL PLC 682.4 -37.8%
EVRAZ PLC 171.3 -30.4%
ROLLS-ROYCE HOLDINGS PLC 102.4 -13.0%
WPP PLC 1034.0 -12.1%
MONDI PLC 1684.0 -11.8%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,207 -3.9% 8.4%
DOW JONES INDUS. AVG 33,224 0.3% 4.0%
DAX INDEX 14,052 -4.0% 0.5%
NIKKEI 225 26,477 2.0% -12.2%
S&P/ASX 200 INDEX 6,998 0.1% 2.4%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 94.92 2.27%
Brent Crude (ICE) USD/bbl. 101.54 2.48%
Gold Spot USD/t oz. 1,917 0.7%
Copper (Comex) USd/lb. 450 0.8%
The UK 100 is called to open +90 points today at 7297.

1 Day; 12 Months

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Markets Overview:

 

The UK 100 is called to open +90 points today at 7297.  Calls for a positive open and bounce from yesterdays drop, come after US markets advanced yesterday in the wake of a round of sanctions against Russia, US markets ended the day in positive territory after a weak opening, with the Dow Jones advancing 92 points to 33,224 having swung 1000 points from low to high during the session, the S&P also climbed 63 points to 4,289, having also been significantly off during early trading.  Asian shares recovered on Friday after investors followed the lead from Wall Street, Some analysts have said the sanctions by the US, Europe and several other countries were not as strong as investors had feared.  Japan’s Nikkei 225 surged 1.95% and South Korea’s Kospi rose 1.06%.  The Shanghai Composite in China gained 0.49% while Hong Kong’s Hang Seng index dipped 0.65%.

 

 

Company News & Broker Comments:

 

Company News:

 

Airtel Africa considers the sale of its tower assets in Chad and Gabon to Helios Towers.

 

 

Babcock reaffirms that FY22 will be significantly negative after material cash outflows.

 

 

Evraz reported a 2021 pretax profit of $4.18bn (2020: $1.3bn) as they expect the demerger of their coal business to be completed in late March.

 

 

IAG says it expects passenger capacity to grow by 85% of pre-pandemic levels and a return to profitability in 2022 after a collapse in 2021 capacity to just 36% of the 2019 level led to a 2.97bn euro net loss (2020: 4.39bn euro loss). They expect to report a significant quarterly operating loss in Q1 2022 but to be profitable from the second quarter.

 

 

Imperial Brands has suspended operations in Ukraine after Russia launched an invasion of the country.

 

 

Pearson says they expect to post an 8% rise in 2022 adjusted operating profit after strong demand for assessment and qualification helped it to enjoy a strong end to the year. They reported a 2021 profit of £385m and said it saw further revenue growth in 2022 and profit in line with current market expectations of £416m.

 

 

Rightmove expects transaction levels to return to pre-pandemic levels this year, dispelling concerns about a slowdown driven by rising inflation and a higher cost of living. Operating profit for the year ended Dec 31st was £226.1m (2020: £135.1m).

Broker Comments

 

JP Morgan Upgrades BAE Systems to Neutral from Underweight (9 Buys / 7 Holds / 0 Sells)

 

 

RBC Upgrades BP to Outperform from Sector Perform (9 Buys / 8 Holds / 0 Sells)

 

 

Reporting Today:

 

Evraz

 

Grafton Group*

 

Greencoat UK Wind

 

IMI

 

International Consolidated Airlines

 

Jupiter Fund Management

 

Pearson

 

Rightmove

 

 

 

Reporting Monday:

Associated British Foods

 

Bunzl

 

Harbour Energy*

 

 

 

 

 

In Focus Today:

 

UK GfK Consumer Confidence

 

German Gross Domestic Product

 

EU Business Climate

 

EU Consumer Confidence

 

US Durable Goods Orders

 

US Nondefense Capital Goods Orders ex Aircraft

 

US Personal Spending

 

 

 

Next Week's Ex-Dividends:

 

FTSE 100:

Dechra Pharmaceuticals

 

Hargreaves Lansdown

 

Barclays

 

FTSE 250:

Diversified Energy Company

 

Safestore Holdings

 

Ashmore Group

 

Scottish American Investment Company

 

Personal Assets Trust

 

HICL Infrastructure

 

Hays

 

Genus

 

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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