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Morning Report - 11 January 2023

Yesterday’s UK 100 Leaders Price (p) % Chg
Admiral Group PLC 2,274.0 3.0%
Convatec Group PLC 246.4 2.2%
Rightmove PLC 553.0 1.4%
Whitbread PLC 2,843.0 1.3%
Smith & Nephew PLC 1,181.5 1.1%

 

Yesterday’s UK 100 Laggards Price (p) % Chg
Rs Group PLC 913.5 -4.1%
British American Tobacco PLC 3,169.0 -3.5%
Airtel Africa PLC 111.0 -3.1%
Next PLC 6,258.0 -3.0%
Ocado Group PLC 721.6 -2.9%

 

Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,694 -0.4% 3.5%
DOW JONES INDUS. AVG 33,580 0.2% -6.9%
DAX INDEX 14,784 -0.1% -6.5%
NIKKEI 225 26,176 0.8% -7.3%
S&P/ASX 200 INDEX 7,131 -0.3% -3.5%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 74.91 0.38%
Brent Crude (ICE) USD/bbl. 79.74 0.11%
Gold Spot USD/t oz. 1,875 0.2%
Copper (Comex) USd/lb. 406 0.9%
The UK 100 called to open +10 points at 7705.

1 Day; 3 Years

Click graph to enlarge

Markets Overview:

The UK 100 called to open +10 points at 7705.  The UK’s blue-chip index is expected to open higher following gains in the US and Asia.  US markets enjoyed a positive session as investor sentiment was buoyed by Federal Reserve chairman Jerome Powells speech which steered clear of rhetoric on interest rates and inflation.  At the close the Dow Jones was up 186 points, or 0.56%, to 33,704, the S&P rose 27 points, or 0.7%, to 3,919 and the Nasdaq advanced 107 points, or 1.01%, to 10,743.

 

Company News & Broker Comments:

Company News:

Barratt Developments state they will build fewer homes in 2023 than the previous year and flagged uncertainty in the market as higher mortgage rates amid a cost-of-living crisis drive homebuyers away. Their net bookings rate per average week fell to 0.30 during the period from Oct 10th to Dec-end, compared with 0.69 during the corresponding period a year earlier.

 

 

Darktrace have cut their FY revenue forecast saying prospective customers were reluctant to run product trials due to the worsening macro-economic environment. They now expect their constant currency annual recurring revenue to increase by 29-31.5% in the year to end-June, down from its previous forecast of 31-34%.

 

 

Direct Line Insurance Group does not expect to pay a final dividend for 2022, following a surge in claims due to severe cold weather in Britain in December. Inflation in motor insurance claims has also impacted their underwriting performance. They reported total weather claims of around £140m for 2022, well above its original expectation of £73m.

 

 

Ferrexpo says 2022 was fatality-free despite war in Ukraine. Their Q4 2022 iron ore pellet production came in at 0.4m tonnes, down from 3.1m YoY. The hit to iron ore production was caused by loss of power for most of the quarter.

 

 

JD Sports reported total revenue growth of over 20% in the six-week Christmas shopping period to end of December, prompting it to raise their FY profit forecast.

 

 

PageGroup says their 2022 operating profit is to be around £195m amid softening near end of Q4.

 

 

Sainsbury expects their yearly profits to be towards the upper end of guidance range of £630-690m.

 

 

Broker Comments:

Deutsche Bank Downgrades Bunzl to Hold from Buy (4 Buys / 8 Holds / 2 Sells)

 

 

JP Morgan Downgrades Deliveroo to Underweight from Neutral (5 Buys / 9 Holds / 0 Sells)

Reporting Today:

Barratt Developments

 

Vistry Group

Reporting Wednesday:

Marks & Spencer Group

 

Taylor Wimpey

 

Tesco

 

Whitbread

 

In Focus Today:

Chinese Consumer Price Index

 

Chinese Producer Price Index

 

German 10-y Bond Auction

 

Japanese Current Account n.s.a.

 

Tomorrow's Ex-Dividends:

UK 100 companies going  ex-dividend on 12th January 2023:

 

SSE

 

Sage Group

 

Ashtead Group

 

B&M European Value Retail S.A.

UK 250 companies going  ex-dividend on 12th January 2023:

 

 

Primary Health Properties

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