Highlights of the Day
Asian Markets
Asian stock markets mostly extended gains to a third straight day, following little movement overnight in the U.S. and Europe. |
U.S. Markets
US Stocks turned in a relatively lacklustre performance during trading yesterday. Despite the choppy trading, the tech-index and the US 500 crept up to new record closing highs. |
Today's News
Aston Martin intends to float on the London Stock Exchange, completing a turnaround after new models and a surge in volumes helped the iconic brand return to profitability following years of losses. The initial public offering (IPO) could see the firm valued at up to £5bn ($6.38bn). Aston Martin said it had filed a Registration Document with Britain’s Financial Conduct Authority, which is a requirement of firms considering an IPO.
Petrofac reported a net loss in the first half compared with a year-earlier profit, hurt by a more than $200m (£156.83m) expense related to the sale of some oil-producing assets. The net loss was $17m in the six months ended June 30, compared with a profit of $70m a year earlier. Petrofac said separately it won a contract worth $600m at Algerian state-owned company Sonatrach to provide engineering, procurement and construction services in the North African country.
Standard Chartered could be facing another criminal penalty after a further investigation by one of the enforcement agencies, the Department of Justice, found evidence suggesting that the bank’s Iranian business was more extensive than it admitted. Authorities may impose an even bigger fine than the $667m the bank paid in 2012 to penalize it for what they view as concealment.
Diploma said that CEO Richard Ingram had stepped down but revealed that it remained on track to deliver on full-year expectations. For the year ending 30 September, the company said it expected revenues to increase by about 7%, and operating margin to be similar to that reported in the first half of the year. Acquisitions are expected to also lift annual performance, contributing about 3% and the annual net cash funds are expected to come in at about £30m.
James Fisher, the marine engineering company, reported a strong increase in both interim pretax profit and revenue. On a statutory basis, pre-tax profit increased 26% year-on-year for the six months to June to £21.5m, and on an underlying basis, the figure rose 205 to £21.7m – all divisions posted a profit in the period.
Micro Focus International said it had kicked off a planned share buy-back programme with an initial tranche of up to $200m. Last week, the company’s shareholders voted to approve the proposed sale of the company’s Suse business to EQTVIII for around $2.54bn. Micro Focus entered into an agreement with Citigroup to conduct the buyback, which would start today and end no later than 24 October.
CRH announced that it had launched ‘Phase 2’ of its share buyback programme to repurchase up to €350m of its shares. The Phase 2 programme would end no later than 19 November 2018, the company said. This comes after the company announced on April 25, its intention to repurchase ordinary shares of up to €1bn over the next 12 months.
Oil Prices after edging higher in the previous two sessions, drifted lower, as traders looked ahead to crude oil inventory data for further direction.
Gold Prices edged slightly higher as traders were mixed about building positions in the yellow metal amid worries about the likely impact of the US-China trade conflict on global economic growth.
Companies Reporting this week
| Monday: |
None of Note |
| Tuesday: |
Bunzl |
| Wednesday: |
Petrofac |
| Thursday: |
Hays * WHSmith |
| Friday: |
Old Mutual |
Early Market Movements
| UK 100 |
7,626.2 |
+9.0 |
+0.1% |
| UK 250 |
20,834.0 |
-15.2 |
-0.1% |
| GER 30 |
12,542.3 |
+14.9 |
+0.1% |
| FRA 40 |
5,494.5 |
+9.5 |
+0.2% |
| US 30 |
26,064.02 |
+14.38 |
+0.1% |
| U.S. 500 |
2,897.52 |
+0.78 |
+0.0% |
| OIL (Crude) |
75.84 |
-0.11 |
-0.1% |
| GOLD |
1,204.78 |
+3.78 |
+0.3% |
UK Risers & Fallers (8:15am)
| Micro Focus |
1310 |
+28 |
+2.2% |
| United Utilities |
733 |
+14.6 |
+2.0% |
| Brewin Dolphin |
367.5 |
+5.1 |
+1.4% |
| Antofagasta |
838.4 |
-9 |
-1.1% |
| Smurfit Kappa |
3272 |
-20 |
-0.6% |
| Inmarsat |
549.5 |
-13.7 |
-2.4% |
Latest Broker Views
| Micro Focus |
1310 |
+28 |
+2.2% |
| United Utilities |
733 |
+14.6 |
+2.0% |
| Brewin Dolphin |
367.5 |
+5.1 |
+1.4% |
| Antofagasta |
838.4 |
-9 |
-1.1% |
| Smurfit Kappa |
3272 |
-20 |
-0.6% |
| Inmarsat |
549.5 |
-13.7 |
-2.4% |
Forthcoming Economic Data
| 1.30pm: US Prelim GDP q/q |
4.1% |
4.0% |
– |
| 3.00pm: US Crude Oil Inventories |
-5.8m |
-0.7m |
– |
Sources:
http://www.stockmarketwire.com/article/6107215/CRH-launches-euro350m-Phase-2-share-buyback-programme.html
http://www.stockmarketwire.com/article/6106902/Micro-Focus-commences-first-200m-tranche-of-buy-back-programme.html
http://www.stockmarketwire.com/article/6107222/Diploma-sees-results-in-line-with-expectations-CEO-steps-down.html
https://uk.reuters.com/article/uk-astonmartin-ipo/aston-martin-sets-out-plans-to-float-on-london-stock-exchange-idUKKCN1LE0IV?il=0
https://uk.reuters.com/article/uk-petrofac-results/uks-petrofac-posts-h1-loss-vs-year-earlier-profit-wins-600-million-contract-idUKKCN1LE0HZ?il=0
https://www.marketwatch.com/story/asian-markets-mostly-extend-this-weeks-gains-2018-08-28
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1535487418029271900.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1535485535019263400.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1535481149019254800.html
https://www.bloomberg.com/news/articles/2018-08-29/standard-chartered-may-face-another-fine-for-sanctions-breaches