Morning Report - 18th October 2022

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Morning Report - 18 October 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
BRITISH LAND CO PLC	350.8	5.1%
PERSIMMON PLC	1,269.5	4.8%
LAND SECURITIES GROUP PLC	531.2	4.7%
INTERNATIONAL CONSOLIDATED AIRLINES GROUP SA	115.0	4.7%
UNITED UTILITIES GROUP PLC	891.8	4.3%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
HARGREAVES LANSDOWN PLC	796.6	-1.9%
HALEON PLC	269.1	-1.7%
BP PLC	449.4	-1.2%
PEARSON PLC	889.6	-1.1%
COCA-COLA HBC AG	1971.5	-0.8%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	6,920	0.9%	-4.3%
DOW JONES INDUS. AVG	30,226	2.0%	-14.4%
DAX INDEX	12,649	1.7%	-18.9%
NIKKEI 225	26,776	-1.2%	-7.9%
S&P/ASX 200 INDEX	6,664	-1.4%	-9.7%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	85.41	-0.23%
Brent Crude (ICE)	USD/bbl.	91.60	-0.03%
Gold Spot	USD/t oz.	1,650	0.4%
Copper (Comex)	USd/lb.	340	-0.6%

The UK 100 is called to open +65 points this morning at 6985.

4 hours; 8 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open +65 points this morning at 6985. The UK bluechip index is set to open higher this morning after being bolstered by the reversal of the market-spooking mini-budget and a strong handover from Asia and New York. Overnight the Dow closed +1.9%, S&P +2.7% and Nasdaq +3.4%. In Asia Shanghai closed -0.1%, Hang Seng +1.2% and Nikkei +1.5%.

Company News & Broker Comments:

Company News:

Aveva Group have set court and general meetings for November 17^th to approve takeover by Schneider Electric. They state that costs have increased significantly from Covid-impacted H1 a year ago which is affecting their margin. They expect significantly lower cost increases in H2.

Bellway has warned of moderating demand in recent months, pressured by rising mortgage rates as the housing sector stares at the risk of a slowdown amid a deepening cost-of-living crisis. They reported a FY pretax profit of £650.4m, +23% YoY.

Jet2 buys 35 new firm ordered Airbus320 neo aircraft until 2031 for around $3.9bn. They might also buy up to 71 Airbus A320 aircraft for up to $8bn in total.

Moneysupermarket.com Group expects their annual core profit to be at the upper end of market views and reported Q3 revenue ahead of expectations. They posted a total revenue of £101.9m, compared with £76.4m profit a year ago.

Rio Tinto have forecast annual iron ore shipments to be at the lower end of its outlook, after Q3 iron ore deliveries fell amid weak global demand, particularly in top metals consumer China.

THG state that the trading arm of SoftBank Group have agreed to sell its holding in THG to chief executive Matthew Moulding and Qatar's sovereign wealth fund.

888 Holdings report that their Q3 revenue fell due to the country's tightened online player safety measures and closure of its Dutch operations. Revenue fell 7% to £449m YoY, adding that adjusted core earnings had improved from the first half of the year.

Broker Comments:

Jefferies Upgrades Dechra Pharmaceuticals to Buy from Hold (3 Buys / 5 Holds / 0 Sells)

Morgan Stanley Upgrades Antofagasta to Equal weight from Underweight (2 Buys / 8 Holds / 3 Sells)

Reporting Today:

Bellway

Quilter

Reporting Wednesday:

Liontrust Asset Management

Spectris

In Focus Today:

Chinese Gross Domestic Product

Chinese Industrial Production

Chinese NBS Press Conference

Chinese Retail Sales

EU HICP

EU HICP-X F,E,A,T

EU ZEW Survey – Economic Sentiment

German ZEW Survey – Current Situation

Japanese Merchandise Trade Balance Total

This Week's Ex-Dividends:

UK 100 companies going ex-dividend on 20th October 2022:

Smiths Group

BAE Systems

UK 250 companies going ex-dividend on 20th October 2022:

ITV

PZ Cussons

Marshalls

Coats Group

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