Highlights of the Day
Asian Markets
Asian markets edged lower as investor confidence seen earlier in the week wavered overnight amid geopolitical tensions. |
U.S. Markets
U.S. stocks closed lower as investors assessed rising geopolitical tensions. Major indexes came under pressure in early trade after tweets from President Donald Trump suggested he was preparing for a military strike in Syria and underlined a tense relationship with Russia. |
Today's News
UK house price balance remained at zero in March, the Royal Institution of Chartered Surveyors said Thursday. The balance was forecast to rise to 2% from zero posted in February. There is little encouragement that the drop in housing market activity is likely to be reversed soon.
Dunelm Group said total revenue for the third quarter rose by 5.1% to £268.2m, supported by ongoing market share gains in the Homewares category despite a ‘challenging’ consumer backdrop. Total like-for-like revenue grew by 4.6%, but gross margin was approximately 15 basis points lower than the comparable period. Core Dunelm margins were down 95 basis points as the firm lowered prices and ramped up end of season sales.
Greene King reported a fall in sales with a couple of weeks left in its financial year, like-for-like sales in Greene King’s Pub Company division – which accounts for more than 80% of group revenues – are 1.8% down year-on-year. Even excluding the impact of the snowy weather, like-for-like sales are 1.2% lower compared to the same period last year. The main issue seems to be food sales, with drink and accommodation like-for-likes both ahead of the prior year.
Carpetright said it expected to report a small underlying pre-tax loss for the year ending 28 April 2018, and confirmed it finalised the terms of a company voluntary arrangement. The firm, warned, that trading conditions have remained difficult but performance was in-line with the guidance released in the most recent update on 1 March.
Saga reported a 7.6% drop in pre-tax profit for its January 2018 financial year, reflecting the impact of a refinancing carried out during the period. Underlying pre-tax profit is up 1.4% and the dividend is hiked 5.9% to 9p reflecting ‘confidence in the future cash generation of the business’.
FirstGroup has rejected a takeover approach from the American private equity group Apollo, the British transport operator has announced. After shares rose more than 7% during trading on Wednesday amid rumours of a takeover bid, the board of FirstGroup issued a statement confirming an initial proposal had been made by Apollo Management but had been unanimously rejected, dismissing it as “opportunistic”.
Man Group drew in almost $5bn of net new money in the first three months of the year, despite “weaker” equity markets hitting performance at many of its funds. Assets under management stood at $112.7bn at the end of March, according to a first quarter trading statement published on Thursday. This was up from a figure of $109.1bn at the end of 2017.
WH Smith saw group profit fall 1% year-on-year in the six months to 28 February 2018 thanks to a lack of new publishing trends over Christmas. The Travel division which serves airports and train stations reported 5% trading profit growth compared with a 6% decline for the High Street arm. The company has increased the dividend 10% to 16p.
National Grid said it expected full-year headline earnings before interest and tax (EBIT) to be lower due to the impact of major storms in the United States. The company, however, said it expected underlying EBIT to be in line with its original guidance.
Gold Prices were mixed at times on trade fears. The price of gold was little changed for the latest week, with choppy trading the main feature, especially with sharp moves in equity markets and frequent changes in direction
Oil Prices were tense on concerns over a military escalation in Syria, although prices remained some way off Wednesday’s highest since late 2014 as bulging American supplies weighed.
Companies Reporting this week
Day |
Companies |
Monday: |
None of Note |
Tuesday: |
None of Note |
Wednesday: |
Tesco |
Thursday: |
Saga |
Friday: |
None of Note |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,252.4 |
-4.8 |
-0.1% |
UK 250 |
19,641.7 |
-13.2 |
-0.1% |
GER 30 |
12,284.8 |
-9.2 |
-0.1% |
FRA 40 |
5,281.7 |
+3.7 |
+0.1% |
U.S. 30 |
24,189.45 |
-218.55 |
-0.9% |
U.S. 500 |
2,642.2 |
-14.7 |
-0.6% |
OIL (BRENT) |
72.31 |
+0.25 |
-0.4% |
GOLD |
1,351.05 |
-2.33 |
-0.2% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Shire |
3643 |
+53.5 |
+1.5% |
Tesco |
228 |
+2.6 |
+1.2% |
Firstgroup |
111.15 |
+9.35 |
+9.2% |
ITV |
144.1 |
-6.1 |
-4.1% |
Paddy Power Betfair |
7075 |
-155 |
-2.1% |
Pets at Home |
155.5 |
-9.1 |
-5.5% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Tesco |
Barclays |
Overweight |
225.40 |
265 |
CRH |
Deutsche Bank |
Hold |
32.0 |
32.20 |
Pagegroup |
Barclays |
Equal Weight |
540 |
541.5 |
Ocado |
JP Morgan |
Neutral |
524 |
505 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8.30am: BOE Credit Conditions Survey |
– |
– |
– |
11:30am ECB Monetary Policy Meeting Accounts |
– |
– |
– |
12:30pm: U.S. Unemployment Claims |
242k |
231k |
– |
Sources
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1523513342104088800.html
https://www.marketwatch.com/story/us-stock-futures-pull-back-as-traders-keep-watchful-eye-on-syria-tensions-2018-04-11
https://www.cnbc.com/2018/04/11/asia-markets-geopolitics-syria-stocks-and-oil-in-focus.html
http://www.stockmarketwire.com/article/5929633/Dunelm-maintains-outlook-as-revenue-grows-but-margins-fall-in-Q3.html
http://www.stockmarketwire.com/article/5929622/Carpetright-sees-small-annual-pretax-profit-loss-amid-plans-to-close-92-stores.html
http://www.stockmarketwire.com/article/5929487/Saga-profit-drops-on-refinancing-costs.html
http://www.proactiveinvestors.co.uk/companies/news/194833/beast-from-the-east-hit-sales-at-greene-king-but-maintained-profit-guidance-soothes-investors-194833.html
https://www.theguardian.com/business/2018/apr/11/firstgroup-rejects-takeover-bid-from-us-equity-group-apollo
https://www.fnlondon.com/articles/man-group-sees-strong-inflows-in-choppy-quarter-20180412