2 May 2018
Paddy Power Betfair, Sage and Ocado“The FTSE 100 enjoys another healthy rise on Wednesday morning as results from Apple surprised on the upside overnight,” says AJ Bell Investment Director Russ Mould.
Paddy Power Betfair“News of a £500m capital return to shareholders is not enough to save bookmaker Paddy Power Betfair from a bashing by the market this morning as it reports a weak...
1 May 2018
BP clears a high hurdle, Just Eat’s margin dilemma and National Grid is out of gas“The FTSE 100 trades slightly higher on Tuesday, continuing its impressive recovery from the recent lows seen in late March. Trading above the 7,500 mark, the index is back within striking distance of the record highs attained in January,” says AJ Bell Investment Director Russ Mould.
BP“Oil company BP beating expectations on trading for the first...
30 April 2018
Investors must decide whether services and buybacks trump slowing smartphone sales at Apple“Tuesday’s second-quarter figures from Apple have huge implications for both the company’s own shares, the wider technology sector and even the whole US stock market, as they may leave investors having to decide whether they are happy to swap state-of-the-art technological engineering for financial engineering,” says Russ Mould, AJ Bell Investment...
30 April 2018
FTSE springs into life, Sainsbury’s M&A raises questions about rivals and suppliers, and WPP on life after SorrellThe FTSE 100 springs into life on Monday with a 0.3% rise to 7,526, driven by a strong showing from financial stocks, Sainsbury’s M&A move and advertising giant WPP bouncing back,” says Russ Mould, investment director at AJ Bell.
Sainsbury’s“The proposed tie-up between Sainsbury’s and Asda raises a lot of questions regarding how the competitor and...
27 April 2018
FTSE keeps its chin up, Royal Bank of Scotland fights negative sentiment and new boss has tough job at Pets at Home“The FTSE 100 nudges up 0.2% to 7,437 on Friday, meaning it has made a small but welcome progress this week, rising a little less than 1% in total. Investors will no doubt be hoping for a stronger showing next week,” says AJ Bell Investment Director Russ Mould.
Royal Bank of Scotland“ Royal Bank of Scotland becomes the latest UK bank to see its...
26 April 2018
Markets under pressure, Domino’s easy win, Taylor Wimpey blames the weather and Shell’s cash flow issue Global Markets“The recent UK stock market recovery has ground to a halt following a jump in US bond yields causing investors to rethink their stance on equities. Trends in the US have a habit of influencing investor action elsewhere in the world.
“Later today we have the latest monetary policy decision from European Central Bank which could also...
25 April 2018
Costa Coffee to go, Persimmon faces up to shareholders, Boohoo growth overshadows margin pressure“A weak trading session on Wall Street, driven by disappointing corporate earnings and a spike in the yields on government bonds, saw the FTSE 100 come under pressure on Wednesday. In early trading the index was down around 0.4%,” says AJ Bell Investment Director Russ Mould.
Whitbread“That didn’t take long. Just over a week after it emerged...
24 April 2018
FTSE storms ahead, Melrose updates on GKN trading and Focusrite amplifies the small cap space“It’s another positive day for the FTSE 100, advancing 0.4% to 7,429 and extending a winning streak since late March. The UK blue chip index has taken its cue from strong trading on Asian markets earlier today and is clawing its way back towards the record highs marked in January,” says AJ Bell Investment Director Russ Mould.
Melrose Industries“In...
23 April 2018
FTSE 100 keeps rising, Capita relief despite heavily discounted fundraise, Rotork in strong demand and Clarkson sinks on profit warning“After a decent showing last week, the FTSE 100 has continued to shine with a small advance on Monday to 7,370. Financial services, mining and pharma are among the stronger sectors on the UK stock market today,” says Russ Mould, Investment Director at AJ Bell.
CAPITA
“Shares in troubled outsourcing provider Capita have jumped upwards despite the...
20 April 2018
Sunny end to the week for UK stock market, Royal Mail boss is twelfth FTSE 100 CEO to be replaced this year and Reckitt Benckiser misses expectations“The FTSE 100 has made an impressive comeback since hitting a year-to-date low of 6,888 on 26 March. The blue chip index has risen by nearly 7% since that low and now trades at 7,365. This week alone it has risen by approximately 2.5%, meaning investors should have a reason to smile in addition to the April heatwave,” says Russ Mould, investment...
19 April 2018
FTSE comeback, Debenhams’ latest disaster and Weir doubles down on resources“The FTSE 100 gains 0.2% to 7,333.07 as yesterday’s weak inflation figures continue to weigh on the pound. Around 70% of constituents’ earnings come from overseas and weaker sterling should boost the relative value of these overseas earnings,” says AJ Bell investment director Russ Mould.
Debenhams“A 52% decline in first half underlying pre-tax...
18 April 2018
No wedding for Hammerson, Rio Tinto unscathed by disruption galore, and Dignity is back from the dead“The FTSE 100 advances 0.3% to 7,248 thanks to strength in the natural resources sector, backed up by a positive showing from tobacco stocks and insurers. We’re back in corporate earnings season again with a flurry of results and trading updates from big names scheduled for the coming few weeks, which should drive increased trading volumes on the...
17 April 2018
FTSE 100 in need of boost to earnings momentumOver a quarter of the FTSE 100 benchmark’s constituents are due to release figures or host their annual general meetings in the next two weeks and this could go a long way to shaping how UK equities perform in the coming weeks and months,” says Russ Mould, AJ Bell Investment Director.
“Short-term share price movements are driven by sentiment but...
17 April 2018
Sterling strength weighs on the FTSE, Majestic Wine invests for the future, ImmuPharma on trial“The FTSE 100 index trades slightly lower despite a strong close overnight on Wall Street. The blue chip index has been held back by a stronger pound,” says AJ Bell investment director Russ Mould.
Majestic Wine“Shares in wine retailer Majestic Wine are lower as the company signals plans to invest an additional £9m to £13m in its business in its...
16 April 2018
Syria strike fails to move market, second activist targets Whitbread and Shire’s oncology sale may complicate a potential takeover UK Stock Market“The UK stock market barely moves on Monday despite the Syria missile strikes at the weekend serving to heighten geopolitical tensions, something that has historically had a negative impact on stock markets around the world.
“Also perplexing is the failure for the gold price to move upwards; the precious metal has historically...
12 April 2018
Carpetright enters CVA, WHSmith looks to travel, Saga cruises higherThe FTSE 100 starts more or less flat on Thursday despite mounting tensions between the US and Russia over Syria,” says AJ Bell investment director Russ Mould. Carpetright
"Investors in carpet retailer Carpetright are having to endure more pain this morning as the company looks to enter a Company Voluntary Agreement (CVA) – essentially a formal...
11 April 2018
Spotify has enjoyed a successful first week – but now the hard work begins“Spotify shares are trading some 17% above their $132 initial reference price after their first week on the public markets but even that gain pales compared to the 51% average leap over the same time frame at Twitter, Snap and fellow recent float Dropbox,” says Russ Mould, AJ Bell Investment Director.
Flotation date IPO price ($) Change in shares...11 April 2018
Market volatility – we haven’t seen anything yet“Despite talk of stock market volatility, the reality is that the FTSE 100 and S&P 500 indices are still behaving pretty calmly relative to the last 20 years, so investors may need to be prepared for wilder times ahead,” says Russ Mould, AJ Bell Investment Director.
Similar quiet periods to match the subdued stock market action of 2015-2017 – such...
9 April 2018
Trade tensions cool, Rolls transformation continues, Keywords results underwhelm“The FTSE 100 starts the week on a positive note as trade tensions between the US and China appear to cool,” says AJ Bell investment director Russ Mould.
Rolls-Royce“The market appears to welcome the news engineering giant Rolls-Royce is selling off its fuel injection technology business L’Orange for a little over £600m.
“As well as providing a...
6 April 2018
FTSE grinds to a halt, AO World potentially still years from profit and Motorpoint bucks negative car market trend“After rallying on Thursday, the FTSE 100 grinds to halt on Friday, sitting still at just under 7,200. Next week could be more interesting as there are some big names reporting results including Tesco and ASOS, as well as trading updates from several recruitment companies which should provide insight into corporate confidence when it comes to...
5 April 2018
Wall Street rally propels FTSE, Hammerson’s case for the defence, Sophos bounces back and bleak outlook for Rank“The FTSE 100 bounces back strongly on Thursday, taking its cue from a strong finish to a volatile trading session on Wall Street last night,” says AJ Bell investment director Russ Mould.
Hammerson“Today’s trading update from shopping mall landlord Hammerson reads like a defence against continuing takeover interest from French rival Klepierre.
“Ma...
4 April 2018
Cider maker swoops on Conviviality, WPP’s CEO under scrutiny and Entertainment One still enjoying Peppa Pig boost“The 7,000 mark appears to be acting as a magnet for the FTSE 100, refusing to let the index stray too far from this level. The market on Wednesday takes a 0.4% step back to 7,005,” says AJ Bell Investment Director Russ Mould.
C&C“Irish cider maker C&C has thrown its hat into the ring as a potential saviour for Conviviality’s distribution business...
3 April 2018
FTSE in trouble, wet Easter bad for consumer-facing companies and latest twist in the Sky takeover saga“The FTSE 100 is struggling once again as the markets reopen on Tuesday, trading 0.6% lower at 7,012. Insurers and utility companies are the principal sectors weighing on the index,” says AJ Bell Investment Director Russ Mould.
Consumer-facing companies likely to be hit by washout Easter“A wet Easter weekend for much of the country will have been...
29 March 2018
FTSE’s first quarter performance worst since 2009 and Compass dragged down by rival’s warning“The market is trying its best to end the week on a positive note, with the FTSE 100 rising 0.09% to 7,050 in early trading on Thursday,” says AJ Bell Investment Director Russ Mould.
Stock Market Movements“Data suggests the FTSE 100 is the worst performing major stock market index in the first quarter of 2018, assuming no major changes to its...
29 March 2018
Four lessons to draw from 18¼ years of precisely zero from UK stocksA potential takeover bid for a fourth FTSE 100 stock is helping the index to try to cling on to the 7,000 mark, as Takeda’s plan to consider an offer for drug manufacturer Shire adds to the offers (hostile or otherwise) for GKN, Smurfit Kappa and Sky.
But that 7,000 mark is still awfully close to the 6,930.2 mark reached on 31 December 1999. This...
28 March 2018
FTSE back in the red, trading recovery for DFS Furniture and working capital issues weigh on Diploma“It’s a miserable day for the UK stock market with the FTSE 100 falling 0.8% to 6,942 in early trading, dragged down by weakness in oil, gas and mining stocks. Investors will be hoping that tomorrow’s session is better so the short trading week ends on a positive note,” says AJ Bell Investment Director Russ Mould.
DFS Furniture“It is fair to say...
27 March 2018
FTSE in recovery mode, Glaxo cleans up, Ferguson beats expectations and AG Barr fizzes higher ahead of sugar tax“Big gains on Wall Street as easing trade tensions set the scene for the FTSE 100 to move sharply back towards the 7,000 mark on Tuesday morning,” says AJ Bell Investment Director Russ Mould.
GlaxoSmithKline“ GlaxoSmithKline appears to be cleaning up its act and gaining a tighter focus on what it does best.
“We now know why it pulled out of the...
26 March 2018
JD Sports goes shopping, Restore makes largest ever acquisition and Speedy Hire beats expectations“After a terrible five days last week, the FTSE 100 is doing its best to claw back some of the lost territory with a 0.2% rise to 6,934 on Monday,” says AJ Bell Investment Director Russ Mould.
JD Sports“Sports retailer JD Sports Fashion made a splash after announcing the $558m acquisition of US rival The Finish Line – giving it a real footprint...
23 March 2018
Next keeps a cool head as many of its rivals and peers start to flounder“ Next’s 54-page-long results release is a whopper but it is what is missing from the statement that matters more than what is in it – there is no profit warning, there is no dividend cut and there is no sense of panic,” says AJ Bell Investment Director Russ Mould.
“Instead, investors are getting a clear analysis of the challenges which face the...
23 March 2018
Market rout on trade war fears, Glaxo pulls out of Pfizer bid, Indivior’s drug disaster and Aviva’s preference share climbdown“A rough week for the markets sees the FTSE 100 on course for a 3.6% fall at 6,902.43, reaching its lowest level since December 2016 as fears of a trade war between the US and China ratchet up,” says AJ Bell Investment Director Russ Mould.
GlaxoSmithKline“After Reckitt Benckiser pulled out of a bid for Pfizer’s consumer healthcare business on...
22 March 2018
How to test the foundations of the property sectorHe is unlikely to have appreciated it, or cared, at the time, but Mark Twain’s advice to “Buy land, they aren’t making it any more” has long since formed the basis of the investment case for UK commercial property, either via quoted stocks or dedicated funds.
Whether property is right for an investor’s portfolio will depend upon their overall...
22 March 2018
Reckitt acquisition relief, Ted Baker caught up in retail gloom and M&C Saatchi bucks the advertising agency trend“The FTSE 100 continues to fall on Thursday, down 0.2% to 7,025 amid weakness in insurers and tobacco stocks and after the US Federal Reserve raised interest rates on Wednesday night,” says AJ Bell Investment Director Russ Mould.
Reckitt Benckiser“Consumer goods business Reckitt Benckiser is the top FTSE 100 riser as it abandons plans to buy the...
21 March 2018
Kingfisher’s cash conundrum, second warning for Moss Bros and Softcat’s worrying language“The FTSE 100 takes a small step back on Wednesday, falling 0.3% to 7,037 on the back of weakness in miners and banks,” says AJ Bell Investment Director Russ Mould.
Kingfisher“The retail sector is truly going through one of its worst periods in recent memory. B&Q may be one of Britain’s best known DIY chains but brand strength doesn’t always...
20 March 2018
FTSE in a better mood, Ocado’s shrinking basket size and Bellway’s future risks“The UK stock market bounces back on Tuesday with the FTSE 100 rising 0.3% to 7,064,” says AJ Bell Investment Director Russ Mould.
Ocado“Forget the snow impacting Ocado’s earnings; the more interesting fact is the reduction in the number of items per basket.
“A reduced average order size is bad news for companies like Ocado. It isn’t really cost...
19 March 2018
FTSE dealt a blow, activist targets Barclays, major setback for Micro Focus and Accrol kicks up another stink“The FTSE 100 has been dealt a blow at the start of the new trading week, falling more than 1% to 7,090. Weakness in miners and utilities is principally to blame,” says AJ Bell Investment Director Russ Mould.
Barclays“Banking group Barclays has topped the FTSE 100 leader board this morning on news activist investor Sherborne has taken a 5%-plus...
16 March 2018
FTSE 100’s poor show, Berkeley hits a wall and gloomier outlook for JD Wetherspoon“It’s been one step forward, two steps back for the UK stock market this week. The FTSE 100 is on track to end the five-day trading session more than 1% down, making it one of the worst performing major stock market indices in the world,” says AJ Bell Investment Director Russ Mould.
Berkeley Group“The chairman of London-focused housebuilder...
15 March 2018
Four indicators suggest markets may be gathering for an upwards move“The FTSE 100 looks to be stabilising in the wake of February’s sudden sell-off but the index is still trading some 7% below the all-time closing high of 7,779 reached two months ago. It is being helped by a slight retreat in Government bond yields, where an increase had threatened to suck some cash away from stocks, and especially sterling, whose...
15 March 2018
How to use moving averages to pin down the FTSE 100In capital, local currency terms, the UK is the worst performing country among the 23 nations classified by the MSCI as ‘developed’ markets in 2018 to date.
The UK is the worst performing developed market so far in 2018 Capital return, local currency Last 12 months 2018 to date * Hong Kong 25.6% Hong Kong 5.6% Austria 20.6% Singapore 4.4% Norway...
15 March 2018
Savills troubles property sector, Cineworld’s new chapter and profit warning from PZ Cussons“While the FTSE 100 nudges ahead 0.1% to 7,141 on Thursday, overall the UK stock market remains stuck in a rut since February’s stock market sell-off,” says AJ Bell Investment Director Russ Mould.
Savills“The real estate sector is weak this morning as major player Savills points to market uncertainty and a ‘tempering’ in strong transaction volumes...
14 March 2018
Muted response to Morrison’s figures suggests food retailers have yet to convince the bears“The combination of rising sales, a healthy jump in pre-tax profits, lower debt, an increased ordinary dividend and even a special dividend of 4p sounds very appealing but investors are still declining to stock up on shares in Morrison,” says AJ Bell Investment Director Russ Mould.
“One reason for this is that operating profit fell year-on-year...
14 March 2018
Prudential’s amicable divorce, there is still life in Dignity and Balfour fights back“Insurers and miners help to lift the FTSE 100 on Wednesday with the blue chip index rising 0.2% to 7,153,” says AJ Bell Investment Director Russ Mould.
Prudential“They say breaking up is the hardest thing to do, yet Prudential doesn’t seem to have any qualms about splitting its business into two. There has been speculation for years that the...
13 March 2018
The real reason why Fevertree shares are down, the FTSE takes a step back and further problems for Greencore“The FTSE takes a step back on Tuesday, trading five points lower at 7,209. Gains in the oil and mining sectors are offset by losses among consumer goods companies and insurers,” says AJ Bell Investment Director Russ Mould.
Fevertree Drinks“Can you imagine drinking gin without tonic? The same goes for Fevertree Drinks and earnings upgrades. The...
12 March 2018
FTSE holds firm, Melrose’s final attempt to buy GKN and Polymetal’s countless moving parts“The UK stock market starts the week on a quiet note as the FTSE 100 is flat at 7,227,” says Russ Mould, investment director at AJ Bell.
Melrose“With just 5.76% of GKN shareholders acquiescing to its initial approach and with the 29 March deadline for acceptances fast approaching, Melrose has upped its cash and shares bid from £7.4bn to £8.1bn.
“...
9 March 2018
FTSE on track for strong week, looking beyond SIG’s headlines and GVC issues reassuring numbers“Although The FTSE 100 doesn’t seem to want to move on Friday morning, trading flat at 7,196, it is still on track to finish the week up nearly 2%. That would be its best weekly performance since early February,” says AJ Bell Investment Director Russ Mould..
SIG“Results from specialist building products firm SIG are a lesson in not just focusing...
8 March 2018
Four reasons why financial markets may not want to see tariffsWhen Donald Trump was running for President, financial markets were wary of him, not least because of his calls for tariffs and protectionist policies, and it now looks like those fears may be realised, depending upon how America’s trading partners respond.
Such concerns could start to counter the optimism generated by the President’s drive for tax...
8 March 2018
Domino’s health warning, Countrywide flop and G4S fighting negative sentiment“The FTSE 100 sits on its hands on Thursday, staying flat at 7,157,” says AJ Bell Investment Director Russ Mould.
Domino's Pizza“Full year results from Domino’s Pizza look impressive at first glance with UK system sales breaking through the £1bn mark for the first time and decent growth in pre-tax profit and dividends.
“Yet under the bonnet...
6 March 2018
FTSE bounces back, Just Eat setback, Smurfit Kappa bid brings excitement to the packaging sector and profits down at Aggreko“The UK stock market bounces back with a near -1% rise on Tuesday, trading at 7,180 in the first hour of the market being open. Miners, utility companies, pharma firms and financial services groups all lead the charge,” says AJ Bell Investment Director Russ Mould.
Just Eat“For the second time in a little over six months online takeaway platform...
2 March 2018
FTSE lower, Mondi lifted by special dividend, IMI outlook disappoints“The FTSE 100 starts the day on the back foot after weakness in the US and Asia overnight and ahead of a widely trailed speech by prime minister Theresa May on Brexit later,” says AJ Bell Investment Director Russ Mould.
MONDI
“The market’s obsession with income continues as the one euro special dividend which accompanies 2017 results from paper...
1 March 2018
How to build a margin of safety into stock portfolios (Part II)The first part of this column, which looked at price/earnings ratios (PEs) and how to use them cited Warren Buffett a lot. With uncanny timing, the American investment legend’s annual Letter to Shareholders in his Berkshire Hathaway vehicle arrived last weekend (24 February) to provide an ideal context for the second part of our look at how to...
1 March 2018
WPP suffers, Howden Joinery’s property challenge and Merlin bounces back"The UK stock market has recently been acting like a rollercoaster in slow motion. It nudges up a tiny bit and eases back a tiny bit. Today the FTSE 100 slips 0.3% to 7,211," says AJ Bell Investment Director Russ Mould.
WPP
“The string of disappointing updates from WPP continues as it posts its worst set of numbers since the financial crisis and...