15 January 2018
Six lessons investors can draw from Carillion’s collapse“While the recriminations are only just beginning, investors can immediately draw six lessons from the Carillion debacle which they will be able to apply to stocks from all geographies and sectors,” says Russ Mould, AJ Bell Investment Director.
1. Beware complexity – keep it simple“It is hard to find what operational synergy or overlap in...
15 January 2018
Carillion, GKN and Gem Diamonds“Blue-chips, which had been tipped to open on the front foot, were in negative territory in early trading as traders mulled the collapse of construction giant Carillion,” says AJ Bell Investment Director Russ Mould.
“ Carillion’s collapse followed the failure of last ditch talks with its key financial and other stakeholders, including the...
12 January 2018
GKN, Bovis and Mitchells & Butlers“Blue-chips edged higher building on yesterday’s solid performance when the index rose to 7,762.94 points by the close of play,” says AJ Bell Investment Director Russ Mould.
“Engineering and aerospace group GKN’s shares soared after it turned down an approach from Melrose. GKN’s board considered the proposal as entirely opportunistic and that the...
11 January 2018
Tesco, Marks & Spencer and Card Factory“The FTSE100 opened in positive territory following muted trading in the US and Asia,” says AJ Bell Investment Director Russ Mould.
“Supermarket giant Tesco was the biggest blue-chip faller despite record Christmas sales. Tesco’s like-for-like sales in the UK were up by 1.9% in the third quarter driven by a 3.4% rise in food sales. This was...
10 January 2018
Food price inflation lifts Sainsbury but forces consumers to make a choice“A second straight drop in Sainsbury’s general merchandise sales will have knees knocking at investors in Marks and Spencer ahead of its festive update tomorrow but investors in the grocery giant will still be pleased to see an increase in overall like-for-like sales growth, good progress at Argos and a small upgrade to profit forecasts for the...
10 January 2018
How to judge whether it is time to follow – or go against – the crowdWith the FTSE 100 trading above 7,700 and the FTSE All-Share also setting new highs just under the 4,250 mark, investors are off to a good start in 2018 and momentum seems to be on their side.
The FTSE 100 and FTSE All-Share have both begun 2018 on an all-time highSource: Thomson Reuters Datastream
However, the crushings handed out to Debenhams...
10 January 2018
Moss Bros, Sainsbury’s and Ted Baker“The FTSE100 confounded forecasts and edged higher as traders awaited the latest manufacturing and industrial production data for November, due this morning,” says AJ Bell Investment Director Russ Mould.
“ Moss Bros was a double-digit faller after it warned that full year profits would be slightly below forecasts. The group continues to grow...
9 January 2018
Morrisons maintains its momentum as consumers tuck in at Christmas“The battle between the bulls and the bears continues at Morrisons but it is the shareholders rather than the short-sellers who are raising a glass to the grocer’s Christmas trading statement,” says Russ Mould, AJ Bell Investment Director.
“A 2.8% increase in like-for-like sales, excluding fuel, in the 10 weeks to 7 January represented the ninth...
9 January 2018
Morrisons, Topps Tiles and Elegant Hotels“The FTSE100 opened on the front foot despite latest consumer spending data from Visa, while not an official baseline, showing a decline in general household spending. US equity markets ended relatively flat, while Asian markets were generally upbeat this morning,” says AJ Bell Investment Director Russ Mould.
“ Morrisons topped the blue-chip board...
8 January 2018
Mothercare, H&T and Dialight“Blue-chips edged lower with investors preparing for a week of key Christmas trading updates from the retail sector with Morrisons, Sainsbury’s and Tesco all due to reveal their figures,” says AJ Bell Investment Director Russ Mould.
“ Mothercare’s shares plunged following a profit warning. UK like-for-like sales tumbled by 7.2% as the group...
5 January 2018
Absence of job cuts, increased wages and bullish markets are enough to keep the Fed on track in 2018“America created fewer jobs than economists expected in December, with the addition of 148,000 non-farm jobs undershooting the consensus forecast of 190,000,” says AJ Bell Investment Director Russ Mould.
“However, this is unlikely to shake the Fed from its planned course of three more interest rate hikes in 2018, especially as job cuts in 2017...
5 January 2018
Crawshaw, Egdon and Premier African Minerals“Blue-chips were at record highs in early trading with little in the way of UK corporate news to give direction and investors looking to US non-farm payrolls later,” says AJ Bell Investment Director Russ Mould.
“Butcher Crawshaw was an early riser following record sales in the week leading up to Christmas. This was due to the strength of its...
4 January 2018
Why a bidder is unlikely to put Debenhams’ shareholders out of their misery“Eight months after launching his Debenhams Redesigned strategy, Sergio Bucher, the company’s boss, must be wondering what he has let himself in for by taking the job, as today’s huge profit warning means it looks more like a case of Debenhams Undone,” says Russ Mould, AJ Bell Investment Director.
“While eight months is not a fair time period by...
4 January 2018
Debenhams, MJ Gleeson and Costain“The FTSE100 built on yesterday's steady gains, boosted by another record close on Wall Street after minutes from the Fed showed the committee voted to increase the benchmark interest rate to 1.5% from 1.25%,” says AJ Bell Investment Director Russ Mould.
“High Street giant Debenhams’ shares plunged following lacklustre trading figures in the run-up...
3 January 2018
Survey shows how sterling’s strength poses a challenge for UK manufacturers“A slight decline in UK manufacturing activity according to the latest monthly survey shows how even the modest gains made by the pound in late 2017 could provide a headwind to companies and their exports in particular in 2018, a factor which may well influence Bank of England thinking when it comes to setting interest rates in the coming year,”...
3 January 2018
Strong online sales overcome festive fears at Next“In a marked contrast to the start of 2017, when a profit warning hammered the shares, Next sits proudly at the top of the FTSE 100 leaderboard after its Christmas statement showed improved full-price sales momentum, exceeded profit expectations and offered a £300 million share buyback, as the firm demonstrated the power of its online operations,”...
3 January 2018
Next, Carillion and Plus500“The FTSE100 opened on the front foot tracking overnight gains on Wall Street, which also had a positive influence on Asian markets,” says AJ Bell Investment Director Russ Mould.
“ Next topped the blue-chip board in early trading after it upgraded its annual profit guidance following better-than-expected pre-Christmas sales. Next is a bellwether...
3 January 2018
Three sectors to keep an eye on in 2018After ending 2017 on a hot streak, with a string of consecutive closing record highs, the FTSE 100 stands above 7,600 and sits within barely 5% of the 8,000 mark.
FTSE 100 set a run of new all-time record highs at the turn of the yearSource: Thomson Reuters Datastream
This naturally begs the question of whether this momentum can be maintained...
2 January 2018
IAG, Armadale and Irish Continental Group“The FTSE100 slipped back from record highs and started the year in negative territory following on from the weaker performance for US stocks on Friday,” says AJ Bell Investment Director Russ Mould.
“ International Airlines Group’s shares edged higher in early trading after it confirmed it is buying assets of Austrian airline NIKI, which was...
21 December 2017
Balfour Beatty, Corero and Nu-Oil & Gas“The FTSE100 opened lower following fall on Wall Street and mixed session of Asian markets in a quiet day on the global markets ahead of Christmas,” says AJ Bell Investment Director Russ Mould.
“ Balfour Beatty topped the FTSE250 board in early trading after it raised its pre-tax profit forecast. The group’s coffers will be boosted following an...
20 December 2017
Five themes that look set to shape portfolio returns in 2018After last week’s attempts to learn key lessons from 2017, this column will now turn its attention to the year ahead. In the (unfortunate) absence of a crystal ball, no promises or guarantees can be offered, but below are five themes which investors will need to think about when it comes to portfolio strategy in 2018 and beyond.
They are:
Central...
19 December 2017
Koovs, Nichols and GoCompare“Blue-chips maintained their recent momentum as Asian markets generally firmed overnight and with little in the UK diary to prompt any significant directional change,” says AJ Bell Investment Director Russ Mould.
“Online fashion group Koovs’ shares slumped after gross sales were flat in the six months to the end of September. The group, which...
18 December 2017
FTSE 100 to break new ground in 2018 and threaten the 8,000 mark“The FTSE 100 could launch a concerted attack on the 8,000 mark for the first time in 2018,” says AJ Bell Investment Director Russ Mould.
“With the blue chip index once again approaching its all-time closing high of 7562.28, below are three things that could power the FTSE 100 to new levels next year:
“While issues such as Brexit, an economy that...
18 December 2017
Babcock, Hunting and Earthport“The FTSE 100 opened on the front foot, tracking early gains in Asia, although volumes were subdued in the run-up to the Christmas break,” says AJ Bell Investment Director Russ Mould.
“ Babcock was an early blue-chip riser after its Cavendish Nuclear subsidiary clinched a 10-year contract with Sellafield. Cavendish Nuclear will supply specialist...
15 December 2017
BT/Sky, WH Ireland and Ceres Power“The FTSE 100 started the last session of the week in negative territory, as Brexit negotiations continued to dominate sentiment in the City. Asian markets were trading lower this morning, following on from an overnight decline on Wall Street,” says AJ Bell Investment Director Russ Mould.
“ BT and Sky’s shares edged up in early trading after they...
14 December 2017
Five themes from 2017 that could influence 2018There can be no denying 2017 was an eventful year and making money was not entirely straightforward, even allowing for Bitcoin’s surge into the stratosphere. Bonds generally struggled, commodities were mixed and equities provided the best returns, albeit with very wide performance gaps between the best and the worst geographies, sectors and stocks...
14 December 2017
Ocado, Lonmin and Sports Direct“The FTSE100 opened in negative territory following UK Prime Minister Theresa May’s parliamentary defeat over proposed changes to Brexit and a hike in US interest rates,” says AJ Bell Investment Director Russ Mould.
“Online supermarket Ocado’s shares edged lower in early trading despite double digit growth in revenues and the average number of...
13 December 2017
Serco, Dixons Carphone and TUI“The FTSE 100 slipped back in early trading with UK Prime Minister Theresa May heading to the House of Commons today to address divided MPs over the latest amendments to the European Union withdrawal bill,” says AJ Bell Investment Director Russ Mould.
“ Serco led the FTSE 250 on its expectation that full year profits would be at the top end of...
12 December 2017
Ashtead, Carpetright and Balfour Beatty“The FTSE100 opened in defiant mood, given an overnight decline on Asian markets, with inflation data due mid-morning,” says AJ Bell Investment Director Russ Mould.
“International equipment rental group Ashtead topped the blue-chip board in early trading after it raised its full year guidance. The group had a strong first half and its good...
11 December 2017
Hollywood Bowl, Hurricane Energy and Hardide“Blue-chips opened the week on the front foot, taking their cue from Asian markets and despite concerns about a widening political split over the progress and direction of Brexit talks,” says AJ Bell Investment Director Russ Mould.
“Tenpin bowling group Hollywood Bowl topped the FTSE All-Share Index in early trading following strong full-year...
8 December 2017
Berkeley, Porvair and IAG“Blue-chips were virtually flat in early trading after UK Prime Minister Theresa May struck a deal with the EU to move Brexit talks on to the next phase,” says AJ Bell Investment Director Russ Mould.
“Housebuilder Berkeley topped the blue-chip board in early trading after strong first half results and an increase in its pre-tax profit guidance for...
8 December 2017
Why commodities’ stale performance looks odd in 2017One intriguing trend of note this year is the turgid performance of the Bloomberg Commodities index, a basket of 22 raw materials, encompassing energy, industrial metals, precious metals, and agricultural commodities, ranging from grains to crops to livestock.
The Bloomberg Commodities index has meandered even as the Baltic Dry index has steamed...
7 December 2017
World Investment Outlook - Chapter one: UKMarch 2019 is drawing ever nearer but the Brexit picture is still unclear, even after Prime Minister Theresa May’s intervention in the Brussels-based negotiations with her September speech in Florence.
November’s talks between David Davis, British Secretary of State for Exiting the European Union, and Michel Barnier, European Chief Negotiator for...
7 December 2017
World Investment Outlook - Chapter two: USAIt is hard to believe but President Donald J. Trump will be almost half way through his first term in office by November 2018, when he will face a test that may give a clue as to whether this will be his only four-year stint in the White House.
Americans in 36 states and three territories will be voting for their State Governors. More pertinently...
7 December 2017
World Investment Outlook - Chapter three: JapanWith the Nikkei 225 and Topix stock benchmarks touching twenty-year peaks, the yen rising against the dollar and the economy putting together its best streak of quarterly GDP increases for a decade investors could be forgiven that everything in the Japanese garden is rosy.
The Nikkei 225 ended 2017 with a powerful run, aided and abetted by Prime...
7 December 2017
World Investment Outlook - Chapter four: AsiaIt is hard to believe that the 19th Communist Party Congress in China, the fall and arrest of a President in Seoul and a hung Parliament in New Zealand could be so comprehensively overshadowed, but North Korea’s nuclear and missile tests managed precisely that in 2017.
The foreign policy of Kim Jong-un will remain front of mind for anyone with...
7 December 2017
World Investment Outlook - Chapter five: Western EuropeWhile by no means conclusive in laying to rest the threat posed by anti-EU parties, the Dutch, French and German elections of 2017 are encouraging leaders in Paris, Brussels and Berlin to press ahead with greater political and economic integration, rather than loosen existing ties. Even as the Brexit negotiations grind slowly on, the next big test...
7 December 2017
World Investment Outlook - Chapter six: Emerging MarketsElections in Mexico and Brazil will help to set the tone in Latin America in 2018, especially if those countries follow Argentina’s political drift to the right and its embrace of the market-friendly policies of President Mauricio Macri.
Politics also remains centre-stage in Eastern Europe, even if the result of March’s Presidential Election in...
7 December 2017
Ladbrokes Coral/GVC, DS Smith and Legal & General“Blue-chips edged higher as confusion over the future direction of Brexit negotiations continues to weigh on sentiment,” says AJ Bell Investment Director Russ Mould.
“Investors welcomed a possible takeover of Ladbrokes Coral by GVC. The two firms have held talks before but the latest move has been given added impetus by the Government review on...
6 December 2017
Shaftesbury and Hammerson swoops show faith in British commercial property sector“ Shaftesbury’s fund raising so it can acquire one building in Soho and finance the long-term leasehold of another, coupled with Hammerson’s all-share offer for shopping centre-owner Intu, shows that the real estate companies themselves believe there is value to be had in British commercial property, even if investors do not,” says Russ Mould, AJ...
6 December 2017
Saga, Johnston Press and Stagecoach“The FTSE100 opened in negative territory as the turmoil surrounding ongoing Brexit negotiations showed little sign of abating. Overseas markets were also weaker overnight as geopolitical and economic growth concerns continued to unsettle investors,” says AJ Bell Investment Director Russ Mould.
“ Saga’s shares plunged after it issued a profits...
5 December 2017
Character, IG Group and Victrex“The FTSE100 confounded forecasts and opened on the front foot after UK Prime Minister Theresa May returned from Brussels without clinching a deal with the European Union, as Irish border issues prevented a breakthrough towards trade talks. The failure prompted a fall in sterling but boosted blue-chip stocks as a drop in the currency increases the...
4 December 2017
National Express, Circassia and Galileo Resources“Blue-chips opened in positive territory ahead of UK Prime Minister Theresa May power lunch with European Commission president, Jean-Claude Juncker, as Britain sets out its latest deal to enable trade talks to commence,” says AJ Bell Investment Director Russ Mould.
“ National Express was an early riser after it completed two small acquisitions in...
1 December 2017
Beowulf Mining, Indivior and RM2 International“Blue-chips confounded forecasts and edged into positive territory at the start of December following on from a positive overnight session on Wall Street,” says AJ Bell Investment Director Russ Mould.
“ Beowulf Mining’s shares plummeted after an administrative board in Sweden decided that it would not recommend the award of an exploitation...
30 November 2017
Three quick tests to make sure the US stock market isn’t a turkeyA relentless series of new all-time highs in benchmark stock indices such as the Dow Jones Industrials, S&P 500 and NASDAQ Composite mean that America’s financial markets continue to write nearly as many headlines as its President.
Buoyed by hopes for growth-stimulating tax reform and ongoing faith in the US Federal Reserve’s ability to provide...
30 November 2017
BAE Systems, Marston's and Aviva“The FTSE 100 extended yesterday's losses in early trading after the rally in global equities cooled somewhat following mixed performances on markets in the US and Asia overnight,” says AJ Bell Investment Director Russ Mould.
“ BAE Systems topped the blue-chip board in early trading after it reached agreement deficit recovery plans with the...
29 November 2017
No-one wins as both CEO and chairman elect to leave the London Stock Exchange Group“Whether Bank of England Governor Mark Carney’s comments on Tuesday about the London Stock Exchange Group’s (LSEG) succession plans had any impact or not, this messy situation has been resolved in one way by the decision of chief executive Xavier Rolet to step down immediately and chairman Donald Brydon’s choice not to seek re-election in 2019,”...
29 November 2017
Findel, Britvic and Imperial Brands“Blue-chips surrendered some of yesterday's gains as traders mulled news that an agreement may have been reached over the Brexit divorce bill, potentially leading the way to future trade talks with the EU,” says AJ Bell Investment Director Russ Mould.
“Home shopping group Findel’s shares jumped following an increase in interim revenues and a good...
28 November 2017
Ocado, Cranswick and BCA Marketplace“Blue-chips opened on the front foot despite weakness in overseas markets and ahead of the latest house price data from Nationwide,” says AJ Bell Investment Director Russ Mould.
“Online grocery group Ocado’s shares surged after it agreed to partner with Groupe Casino in France. The transaction is expected to be earnings neutral in 2018 with the...
27 November 2017
Patisserie, Trakm8 and Cerillion“The FTSE100 opened the week in negative territory, taking its cue from markets in Asia while ongoing concerns over UK productivity, economic growth and Brexit continued to weigh on sentiment,” says AJ Bell Investment Director Russ Mould.
“Handmade cake group Patisserie was one of the top risers on AIM after strong full year results. The group...