Highlights of the Day
Asian Markets
Asian stock markets were higher, though gains are modest in most markets as investors turned their attention to the upcoming annual conference of global central bankers in Jackson Hole, Wyoming later this week. |
U.S. Markets
The U.S.500 ended up slightly after two days of declines, though simmering tensions between the United States and North Korea kept investors on edge and a drop in oil prices weighed on energy shares.. |
Today's News
BHP Billiton published its annual results that showed the multi-commodity producer and trader turned to a £$0.32bn pretax profit from a record loss the prior year, helped by higher revenue and lower costs. The miner turned to the material profit in the year to the end of June from a staggering $7.25nn loss the year before, as revenue rose to $38.28bn from $30.91bn the year before, while expenses excluding finance costs dropped to $27.54bn from $35.48bn.
Provident Financial ditched its interim dividend as its chief executive stepped down. The company reported its collections performance is currently running at 57% versus 90% in 2016 and sales were some £9m per week lower than the comparative weeks in 2016. The extent of this underperformance and the elongated period of time required to return the performance of the business to acceptable levels invalidates previous guidance. The pre-exceptional loss of the business is now likely to be in a range of between £80m and £120m.
Antofagasta said a rise in sales volumes, coupled with materially higher copper prices and improved margin, led to a jump in profit in the first half of 2017, with its interim dividend keeping pace. Antofagasta said the much better performance in the first six months of 2017 has encouraged it to declare an interim dividend of 10.3 cents per share, having only been 3.1 cents the year before. The lift to the payout came as the miner reported a lift in first half revenue to $2.04bn from $1.44bn the year before – with sales volumes up 14% from the prior year while average copper prices jumped over 25% – pushing operating profit up to $742.9m from $297.3m.
Persimmon said it has built a “platform for its future success” as its pretax profit and revenue rose in the first half of 2017, and said it has a strong balance sheet and a confident market. The group reported pretax profit for the six months to the end of June at £457.4m, up from £352.3m the year before, as revenue grew by 12% to £1.66bn from £1.49bn.
Petrofac said it has agreed to sell its 50% stake in Petro-SPM Integrated Services SA de CV to Schlumberger for an undisclosed amount. The company said Schlumberger will own 100% of Petro-SPM after the deal. Petro-SPM operates the Panuco integrated service contract in Mexico.
John Wood Group said profit declined in the first half of 2017, reflecting the different market conditions across its business, as the company raised its interim payout. The oilfield services company, on course to merger with Amec Foster Wheeler in the fourth quarter of this year, said revenue in the first half of 2017 fell to $2.27bn from $2.55bn the year before, while its earnings before interest, tax and amortisation margin tightened to 5.6% from 6.5%.
Oil prices rose, lifted by indications that supply is gradually tightening, especially in the United States.
Gold prices inched down following an uptick in the dollar amid some caution ahead of an annual central banking meeting in Jackson Hole later this week.
Companies Reporting this week
Day |
Companies |
Today: |
AFI Development * Antofagasta * BHP Billiton * Cairn Energy * Cape * Empresaria Group * Hostelworld Group * Inspired Energy * Kenmare Resources * Ossiam Lux Ossiam ETF Shiller Barclays Cape EU-EUR * Persimmon * Quantum Pharma * Wood Group (John) |
Tomorrow: |
Ashley (Laura) Holding * Anglo Pacific Group * Candover Investments * Carillion * Costain Group * Hansteen Holdings * NMC Health * WPP |
Thursday: |
Avocet Mining * Camellia * CRH * Hunting * John Laing Group * Macfarlane Group * OneSavings Bank * Phoenix Group Holdings (DI) * Playtech * Premier Oil * Sportech |
Friday: |
Henry Boot * ITM Power |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,365.0 |
+46.1 |
+0.6% |
UK 250 |
19,686.7 |
+39.8 |
+0.2% |
GER 30 |
12,156.1 |
+90.1 |
+0.8% |
FRA 40 |
5,121.0 |
+6.8 |
+0.1% |
U.S. 30 |
21,703.75 |
+29.24 |
+0.1% |
U.S. 500 |
2,428.4 |
+2.8 |
+0.1% |
OIL (BRENT) |
52.03 |
+0.37 |
+0.7% |
GOLD |
1,284.10 |
-7.78 |
-0.6% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Persimmon |
2632 |
+76 |
+3% |
Whitbread |
3883 |
+90 |
+2.4% |
Ferrexpo |
283.75 |
+5.05 |
+1.8% |
Provident Financial |
900.5 |
-844.5 |
-48.4% |
Hikma |
1142 |
-30 |
-2.6% |
Randgold Resources |
7425 |
-25 |
-0.3% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
IAG |
Davy |
Neutral |
616.5 |
630 |
Kaz Minerals |
Goldman |
Neutral |
743.25 |
800 |
UDG Healthcare |
Berenberg |
Hold |
810.25 |
815 |
Hikma |
Goldman Sachs |
Neutral |
1142 |
1310 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:30am: U.K. Public Sector Net Borrowing |
6.3bn |
0.0bn |
– |
10:00am German ZEW Economic Sentiment |
17.5 |
14.8 |
– |
11:00am: CBI Industrial Order Expectations |
10 |
8 |
– |
Sources
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503385696672835500.html
https://www.reuters.com/article/us-global-oil-idUSKCN1B201V
https://www.reuters.com/article/usa-stocks-idUSL2N1L713O
http://www.nasdaq.com/article/asian-markets-mostly-higher-with-modest-gains-20170821-01083
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503384514532799000.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503381930442614000.html
http://www.stockmarketwire.com/article/5635742/Wood-Group-operational-profit-falls.html
http://www.stockmarketwire.com/article/5635681/Provident-Financial-ditches-dividend.html
http://economictimes.indiatimes.com/markets/commodities/news/gold-silver-slip-in-morning-trade/articleshow/60170015.cms
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503385107172810900.html