Highlights of the Day
Asian Markets
There were broad gains in Asia although olume was muted because of a holiday in Japan and ahead of an expected Federal Reserve interest-rate increase and updated economic projections. |
U.S. Markets
U.S. stocks edged up as higher oil prices buoyed the energy sector, but another slump in Facebook Inc shares curbed gains. |
Today's News
Royal Dutch Shell reiterated its expectation to generate $6bn (£4.3bn) to $7bn annual organic free cash flow by 2020 for its downstream business. The business, including refining, trading, marketing and chemicals has proved its importance during the oil industry’s downturn since 2014, providing the bulk of Shell’s profits as the price of crude collapsed.
Ferrexpo raised its 2017 dividend by 150% as earnings jumped on stronger demand. The London-listed firm said 2017 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 47% to $551m. Dividends for 2017 reached 16.5 cents from 6.6 cents a year earlier, including a final and special dividend.
Petrofac said it had been awarded a $200m contract by Hindustan Petroleum to conduct work at the Visakh refinery in India The lump-sum engineering, procurement and construction project spanned 30 months and involved working on the sulphur recovery unit during a refinery modernisation project.
Vectura Group said annual losses more than doubled after it wrote down the value of past acquisitions and experienced delays launching a new asthma treatment. The company booked a pre-tax loss of £102.2m, compared to a £40.1m loss in 2016. The loss included a non-cash charge for amortisation and impairment of intangible assets of £109.7m arising from prior acquisitions.
Softcat posted a 15% rise in first-half profit as it boosted customer numbers and cross-sold them more products. Pre-tax profit grew to £24.15m, while adjusted operating profit jumped by 19% to £25.4m, as revenue increased by 25% to £472.8m. Customer numbers grew by 6%, though this represented slowing growth from 8.7% in the previous corresponding period.
Kingfisher said profit fell in its recently ended financial year though revenue rose, as it warned its outlook by country for the year ahead is a “mixed picture” Sales rose 3.8% to £11.66bn for the year ended January 31 from £11.23bn the year before, as pretax profit fell to £682m after exceptional items from £759m the year prior.
GKN branded Melrose Industries a novice operator with no plan, in the latest round of accusations between the companies locked in a hostile bid battle. The company published a series of rebuttals to what it described as misleading statements made by Melrose, which is trying to buy GKN against the will of GKN’s board.
Gold Prices rose as the dollar fell as investors await the outcome of the U.S. Federal Reserve’s meeting this week for signs of the pace of monetary tightening
Oil Prices rose, supported by tensions in the Middle East and healthy global demand, although rising U.S. output from the United States continued to weigh on markets.
Companies Reporting this week
Day |
Companies |
Monday: |
None of Note |
Tuesday: |
None of Note |
Wednesday: |
Kingfisher * Ferrexpo |
Thursday: |
Ted Baker * Allied Minds |
Friday: |
Next |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,061.0 |
-0.3 |
-0.0% |
UK 250 |
19,723.7 |
+0.1 |
+0.0% |
GER 30 |
12,337.7 |
+30.4 |
+0.3% |
FRA 40 |
5,253.1 |
+0.6 |
+0.0% |
U.S. 30 |
24,727.27 |
+116.36 |
+0.5% |
U.S. 500 |
2716.9 |
+4.0 |
+0.2% |
OIL (BRENT) |
67.60 |
+0.18 |
+0.3% |
GOLD |
1,316.75 |
+5.44 |
+0.4% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Fresnillo |
1176 |
+10 |
+0.9% |
Reckitt Benckiser |
5666 |
+32 |
+0.6% |
Allied Mind |
114.3 |
+2.3 |
+2.1% |
Kingfisher |
315.5 |
-22.2 |
-6.6% |
WPP |
1129.5 |
-16.5 |
-1.4% |
Dunelm |
537 |
-7 |
-1.3% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Intertek |
Kepler Cheuvreux |
Hold |
4995 |
5300 |
Micro Focus |
Goldman Sachs |
Neutral |
991.4 |
1200 |
London Stock Exchange |
Barclays |
Overweight |
4036 |
4635 |
Ferguson |
Credit Suisse |
Outperform |
5272 |
6280 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9.30am: U.K. Average Earnings Index 3m/y |
2.5% |
2.6% |
– |
9.30am: U.K. Claimant Count Change |
-7.2k |
-3.1k |
– |
9.30am: U.K. Public Sector Net Borrowing |
-11.6bn |
-0.4bn |
– |
9.30am: U.K. Unemployment Rate |
4.4% |
4.4% |
– |
2:30pm U.S. Crude Oil Inventories |
5.0m |
2.6m |
– |
6.00pm: U.S. FOMC Economic Predictions |
– |
– |
– |
6.00pm: U.S. FOMC Statement |
– |
– |
– |
6.00pm: U.S. Federal Funds Rate |
<1.5% |
<1.75% |
– |
Sources
https://www.marketwatch.com/story/asian-markets-bounce-back-ahead-of-fed-meeting-2018-03-20
https://www.reuters.com/article/usa-stocks/us-stocks-wall-st-edges-up-on-energy-bump-facebook-slide-continues-idUSL1N1R21L4
https://www.reuters.com/article/global-oil/oil-prices-rise-on-middle-east-tensions-healthy-demand-idUSL3N1R303K
https://uk.reuters.com/article/global-precious/precious-gold-gains-on-dollar-decline-as-market-awaits-fed-rate-outlook-idUKL3N1R31A8
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521618428505653600.html
https://uk.webfg.com/news/news-and-announcements/gkn-brands-melrose-a-novice-operator-as-bid-battle-intensifies–3203394.html
http://www.stockmarketwire.com/article/5901492/Softcat-profit-rises-15pct-as-customer-numbers-swell.html
http://www.stockmarketwire.com/article/5901439/Petrofac-wins-200m-India-refinery-contract-from-Hindustan-Petroleum.html
http://www.stockmarketwire.com/article/5901434/Vectura-Group-losses-more-than-double-on-asset-write-downs.html
http://www.bbc.co.uk/news/live/business-43430970
https://uk.reuters.com/article/uk-shell-outlook/shell-sees-downstream-annual-organic-free-cash-flow-of-6-7-billion-by-2020-idUKKBN1GX0LP
https://uk.finance.yahoo.com/news/ferrexpo-raises-2017-dividend-sees-072945700.html