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Morning Report - 28 February 2020

Yesterday’s UK 100 Leaders Price (p) % Chg
HIKMA PHARMACEUTICALS PLC 1,910.0 4.6%
RENTOKIL INITIAL PLC 504.0 1.7%
RSA INSURANCE GROUP PLC 535.0 0.6%
NMC HEALTH PLC 938.4 0.0%
MONDI PLC 1,619.5 0.0%
Yesterday’s UK 100 Laggards Price (p) % Chg
WPP PLC 761.6 -16.2%
EVRAZ PLC 337.0 -10.5%
TUI AG-DI 655.8 -8.2%
INTL CONSOLIDATED AIRLINE-DI 515.4 -7.9%
EASYJET PLC 1110.0 -7.69%
Major World Indices Price % Chg 1 Year
UK 100 INDEX 6,796 -3.5% -3.9%
DOW JONES INDUS. AVG 25,767 -4.4% -0.6%
DAX INDEX 12,367 -3.2% 7.7%
NIKKEI 225 21,143 -3.7% -1.1%
S&P/ASX 200 INDEX 6,441 -3.3% 4.4%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 45.60 -3.16%
Brent Crude (ICE) USD/bbl. 50.64 -2.95%
Gold Spot USD/t oz. 1,624 -1.3%
Copper (Comex) USd/lb. 252 -2.1%
UK 100 called to open -200 points at 6597

UK 100 : 1 day, 5 Years

Click graph to enlarge

Markets Overview:

 

UK 100 called to open -200 points at 6597; Fear tightened its grip on global markets Friday, with European stock futures tumbling 4% and U.S. contracts signalling yet more pain after the biggest one-day rout on Wall Street since 2011. The yen climbed with sovereign bonds as traders sought shelter.  In Asia, the Nikkei fell 805 points (3.67%).  The Hang Seng closed 645 points (2.44%).  In China the CSI fell by 144 points (3.55%).  In the U.S.  The Dow Jones closed 1,190 lower (4.42%), The S&P 500 closed 137 points lower (4.42%), the Nasdaq fell 414 points (4.61%).  Oil traded at $50.7 a barrel.

 

In corporate news this morning:

 

IAG says earnings will be hit this year by the coronavirus outbreak, but not sure by how much. Weakening demand would cause further flight cancellations. Demand has plunged in recent weeks as the virus has spread. IAG said it could not give an accurate profit guidance at this stage due to the outbreak. For 2019 IAG reported a 5.7% drop in operating profit to 3.285bn euros slightly better than forecast.

 

Rolls Royce reports a $1.1bn operating loss on its Trent 1000 engines. Expects core operating profit to grow about 15% this year with at least £1bn of free cash flow. CEO Warren East said company remains on target to reduce number of aircraft on the ground to single digits by end of Q2.

 

London Stock Exchange said it would complete takeover of analytics company Refinitiv on time, as it reported higher than expected annual income driven by a jump in clearing activity. Total income from continuing operations rose 8% to £2.314bn, ahead of analyst expectations.

 

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

 

 

Reporting Today:

 

Rolls Royce

London Stock Exchange Group

CRH

Rightmove

Man Group

IAG

 

In Focus Today:

 

JP - BOJ Kataoka Speech

 

EU - Eurozone Business Climate

 

US - GDP

Next Week's Ex Dividends:

 

UK 100 :

 

BHP Group

 

Rio Tinto

 

Persimmon

 

Evraz

 

RSA Insurance

 

Standard Chartered 

 

:

 

Oxford Instruments

 

SSP Group

 

Safestore Holdings

 

McCarthy & Stone

 

Renishaw

 

St Modwen

 

Redrow

 

Ashmore Group

 

Hays

 

Dechra

 

Grafton

 

 

Upgrades/Downgrades

 

Barclays Upgraded to Buy by Morningstar (Bloomberg: 16 Buys/ 6 Holds/ 2 Sells)

 

Evraz Upgraded to Buy by VTB Capital (Bloomberg: 4 Buys/ 7 Holds/ 3 Sells)

 

Glencore Upgraded to Buy by Morningstar (Bloomberg: 19 Buys/ 5 Holds/ 1 Sells)

 

Prudential Upgraded to Hold by Morningstar (Bloomberg: 16 Buys/ 6 Holds/ 1 Sells)

 

Smith & Nephew Upgraded to Hold by Morningstar (Bloomberg: 7 Buys/ 8 Holds/ 2 Sells)

 

Unilever Upgraded to Buy by Morningstar (Bloomberg: 10 Buys/ 5 Holds/ 5 Sells)

 

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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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


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