16 June 2020
Ashtead keeps dividend streak alive as it focuses on cashReports of a $1 trillion infrastructure plan from the White House in the USA could make it a doubly good day for investors in Ashtead, as the equipment hire specialist is already pleasing them with an unchanged final dividend for its financial year to April. That means the full-year payment is up very slightly on last year, to both confound...
16 June 2020
Markets rebound on Fed bond buying and $1 trillion stimulus chatter, and Ashtead’s shares surge as it stays progressive on dividends“Just as markets were starting to weigh up the prospect of another prolonged sell-off amid coronavirus second wave fears, talk of a $1 trillion infrastructure plan being considered by the Trump administration has put a rocket under stocks again. Also driving sentiment was the start of the Federal Reserve’s corporate bond buying programme,” says...
15 June 2020
Second wave fears pull FTSE below 6,000 and is BP heading towards a dividend cut?“Markets around the world have sold off again on heightened fears around a second wave of coronavirus infections and deaths,” says Russ Mould, Investment Director at AJ Bell.
“Figures from Beijing show a new outbreak of locally transmitted coronavirus cases, linked to poor hygiene standards in a wholesale food market.
“While the area around the...
12 June 2020
Markets steady despite US sell-off and record drop in UK GDP, and Games Workshop’s products have a been a hit in lockdown“UK stocks were fairly resilient this morning despite panic stations on Wall Street last night as investors across the pond had their first chance to react to the US Federal Reserve’s gloomy assessment of the economic outlook,” says AJ Bell Investment Director Russ Mould.
“Despite the selling continuing in Asia through the night, the FTSE 100 was...
11 June 2020
UK banks sit bottom of the global pileBoosted by governments’ plans to ease their respective lockdowns, as well as fiscal and stimulus programmes designed to support the global economy, banking stocks had been on a roll worldwide, at least until the US Federal Reserve’s statement yesterday, but the UK was a notable exception to that trend, as performance from the Big Five FTSE 100...
11 June 2020
Johnson Matthey dividend cut another jolt for income seekersJohnson Matthey’s decision to cut its dividend – and in the process end a streak of increases that dates back to the late 1980s – means that 48 FTSE 100 firms have now announced some kind of reduction to or suspension of payments to shareholders, compared to 47 that have kept or increased them since the start of the year.
Five FTSE 100 firms –...
11 June 2020
Just Eat Takeaway faces indigestion after another mega deal, and Moneysupermarket faces its own lockdown pressures“A combination of central bank support, the easing of lockdown and hopes of progress towards a coronavirus vaccine have helped support a giddy rally in global stocks in the last two-and-half months with US indices coming close to pre-correction highs,” says AJ Bell Investment Director Russ Mould.
“Last night’s economic projections from the US...
10 June 2020
Little cheer from Chinatown owner Shaftesbury – but how much bad news is already in the valuation?An 11% in Net Asset Value (NAV) per share, a slowdown in leasing activity and the well-flagged cancellation of the interim dividend at Shaftesbury will all feed into the narrative that real estate is an asset class that it destined to underperform in the future as a result of the long-term implications of the Covid-19 pandemic. Such concerns could...
10 June 2020
Restaurant Group prepares next phase of its streamlining plan and investors queue up to back Segro’s expansion strategy“After yesterday’s punishing day on the markets, the FTSE 100 bounced back with a 0.7% gain to 6,380. Asian and European markets were also strong ahead of the important update on US interest rates from the Federal Reserve. The key focus will be the Fed’s updated economic predictions rather than any rate change which isn’t expected to happen,” says...
9 June 2020
British American Tobacco sticks to its dividend pay-out plan despite mild profit warning"British American Tobacco’s decision to stick to its plan of a 65% pay-out ratio for its dividend in 2020 means investors won’t be coughing and spluttering too badly after today’s mild profit warning, but they may still feel the need to clear their throat rather nervously after the FTSE 100’s move to trim back sales and earnings per share growth...
9 June 2020
British American Tobacco battles disappointing emerging markets, and Aveva strengthens its business“The S&P 500 market recovering all of its lost ground this year may have put a spark in Asian markets on Tuesday but the celebratory mood didn’t extend to the UK and Europe,” says Russ Mould, investment director at AJ Bell.
“The FTSE 100 fell 0.4% to 6,447 as insurers and banks were marked down and British American Tobacco disappointed with its...
8 June 2020
FTSE weaker on AstraZeneca merger talks and disappointing Chinese data“The healthcare sector pulled the FTSE 100 down as AstraZeneca was marked lower on reports it had approached Gilead Sciences about a possible merger,” says Russ Mould, investment director at AJ Bell.
Investors are unlikely to welcome a large M&A deal at a time when both companies are trying to fight coronavirus as it could prove to be a...
5 June 2020
Markets end week on a high note and Taylor Wimpey’s land grab“The market rally is back with a bang as the trading week draws to a close. The FTSE 100 jumped 1% to 6,401, putting it on track for a decent 5.3% gain on the week,” says Russ Mould, Investment Director at AJ Bell.
“Even more impressive is the rally in Asian stocks with the MSCI Asia ex-Japan index up 6.6% on the week.
“Helping to drive the rally...
4 June 2020
UK workers prepared to pay extra 4% income tax to fund £300bn pandemic billBattling back from Covid-19 is going to be a long hard journey. As the UK Government eases lockdown restrictions and state support for the economy is slowly scaled back, debate will inevitably pivot towards how the near £300billion black hole in public finances should be filled.
While the Coalition Government opted for public spending cuts to...
4 June 2020
Fevertree toasts lockdown success and Young’s unveils pubs reopening plan“Just as dark clouds cast a shadow over the UK as a bout of rain brings the recent sunny spell to an end, stock markets around the world are also looking a bit gloomy,” says Russ Mould, Investment Director at AJ Bell.
“The recent rally has come to an end with the FTSE 100 retreating by 0.2% to 6,369, stocks in Europe falling by approximately 0.5%...
3 June 2020
Card Factory passes more dividend payments but shares refuse to bend“It seems hard to believe now but at the start of the year analysts were expecting Card Factory to pay out a total dividend of 14.3p a share and offer a dividend yield of more than 10% on the share price at the time,” says Russ Mould, AJ Bell Investment Director.
“Instead, the company has become the first major UK firm to announce a hat-trick of...
3 June 2020
Wizz Air faces turbulent times and SSP engages in financial gymnastics“There is a definite tailwind behind stocks and market optimism remains high despite various geopolitical tensions in the US and Asia,” says Russ Mould, Investment Director at AJ Bell.
“China reported positive data with its services sector returning to growth last month for the first time since January. Investors took this as a positive sign that...
2 June 2020
Tesco’s Stewart becomes latest change in FTSE CFO list (sixteen and counting in 2020 or 2021)One of the odd features that characterised the FTSE 100 before the Covid-19 crisis was the number of chief executive (CEO) and chief financial officers (CFOs) leaving their posts. Tesco’s Alan Stewart has now added to this list as he prepares to retire as the grocer’s chief bean-counter on 30 April 2021, the first to plan his departure for next...
2 June 2020
Property stocks give mixed reaction to latest house price news, and Tesco looks for a new finance boss“The FTSE 100 extended Monday’s gains with another 0.4% advance to 6,190. European and Asian markets were also in positive territory as investors focused on a global recovery from the coronavirus pandemic,” says Russ Mould, Investment Director at AJ Bell.
“The energy and utilities sectors led the UK stock rally with notable gains from Royal Dutch...
1 June 2020
Relief over Trump reticence and Ted Baker resorts to heavily discounted share placing to support recovery plan“The violent protests sweeping the US may have provided some distraction, but the market is relieved that the Trump administration has not responded to China’s new security law in Hong Kong with more punitive measures,” says Russ Mould, Investment Director at AJ Bell.
“This led to a rally in Asian stocks overnight and the FTSE 100 takes the ball...
29 May 2020
Hong Kong tensions hit stocks, B&M sales surge through lockdown“What was shaping up as a pretty sweet week for the markets ended on a sour note as the FTSE 100 slumped on Friday morning,” says Russ Mould, Investment Director at AJ Bell.
“The index took its cue from weak trading in the US and Asia overnight as the war of words between Beijing and Washington (as well as others in the West) ramped up over the...
28 May 2020
easyJet prepares for take-off, and Daily Mail & General Trust ups dividend“The market mood matched the sunny weather on Thursday with investors determinedly focusing on the positives as the FTSE 100 built on its gains for the week and the recovery from the coronavirus-inspired sell-off continued,” says Russ Mould, Investment Director at AJ Bell.
“A great deal of comfort is being taken from the easing of lockdown...
27 May 2020
FTSE 100 could be in for its biggest shake-up since 2009 as latest index shuffle loomsDespite their latest sharp rallies, easyJet and Carnival are still very likely to lose their FTSE 100 status in the latest quarterly reshuffle, thanks to the even bigger falls seen during the spring as their revenues dwindled to pretty much zero. Centrica and Meggitt also look destined for the drop, as their market capitalisations leave them ranked...
27 May 2020
Stocks continue to push forward and British Land faces office conundrum“More people are returning to work, a greater number of shops are preparing to reopen and society has quickly become accustomed to social distancing measures. This shift in behaviour sends a positive signal to markets as it helps to remove layers of uncertainty which have been hanging over share prices,” says Russ Mould, Investment Director at AJ...
26 May 2020
Lockdown exit hopes propel stocks higher“The markets reacted like a coiled spring on Tuesday as the loosening of lockdown conditions in the UK and rest of the world, as well as progress on another potential vaccine, raised hopes of a recovery for a global economy which has effectively been on life support,” says Russ Mould, Investment Director at AJ Bell.
“Tensions over political unrest...