31 January 2018
Capita shock profit warning, Wizz Air loses altitude“The FTSE 100 stabilised after yesterday’s big sell off as investors braced themselves for the latest interest rate announcement from the US Federal Reserve,” says AJ Bell Investment Director Russ Mould.
Capita“Outsourcer Capita lost nearly a third of its market value this morning, its biggest ever one day fall, as new chief executive Jonathan...
30 January 2018
Domino's Pizza, Informa and GreencoreRuss Mould, AJ Bell Investment Director comments:
Domino's Pizza“The cold weather spell towards the end of last year appears to have been a key sales driver for Domino's Pizza as it reports strong numbers for the 13 weeks to 24 December 2017. That's driven people to stay indoors, put their feet up and watch the telly with a takeaway. Domino's...
29 January 2018
Petra Diamonds profit warning, GKN pensions alert, SThree’s overseas jobs boost“The FTSE 100 starts the week on a positive note, rising 10 points to 7,675. Miners and insurers are leading the charge, more than offsetting weakness in consumer goods companies,” says AJ Bell Investment Director Russ Mould.
Petra Diamonds“There is no sparkle to Petra Diamonds’ shares as they collapse on news of a profit warning. The miner says...
26 January 2018
Dollar’s dive could derail some highflying UK stocks in 2018“Way back in 1971 the then US Treasury Secretary John Connally famously declared ‘The dollar is our currency but it’s your problem’ and the person currently in that post, Steve Mnuchin, seems equally unconcerned by the greenback’s latest move lower,” says Russ Mould, AJ Bell Investment Director.
“However, a sustained slide in the buck could start...
26 January 2018
Ingenta, Jaywing and AstraZeneca“The FTSE 100 opened in positive territory ahead of this morning’s fourth quarter GDP figures, which will give some insight into the general state of the UK economy,” says AJ Bell Investment Director Russ Mould.
“ Ingenta, a leading software and service provider to the publishing and media industry, was a double-digit riser following further...
25 January 2018
Hornby, Kier and Greene King“The FTSE 100 opened in negative territory after sterling's gains and a mixed performance on Wall Street overnight dragged on the market,” says AJ Bell Investment Director Russ Mould.
“Model train maker Hornby was a double-digit faller after warning that full-year losses would be worse than expected. The group decided in October that it would no...
25 January 2018
All hail the declining dollarThe American politician John Connally packed a lot into his life, including a rare switch from the Democratic to the Republican Party, but he is best known for two things.
First, he was sat in the same limousine as John F. Kennedy when America’s thirty-fifth President was assassinated in Dealey Plaza, Dallas Texas in November 1963.
Second, as...
24 January 2018
Wetherspoon, WH Smith and Fresnillo“The FTSE 100 was down in early trading as a firmer pound hurt exporters,” says AJ Bell Investment Director Russ Mould.
“Pub group JD Wetherspoon topped the FTSE 250 board after better-than-expected like-for-like sales in the first 12 weeks of its second quarter. The group is now anticipating underlying pre-tax profits to be slightly better than...
23 January 2018
Pets at Home gives short-sellers a nasty bite“Having been carried out by online grocer Ocado yesterday short sellers are being bitten by Pets at Home today, as the specialist retailer and provider of veterinary and grooming services reveals stronger-than-expected trading for the third quarter,” says AJ Bell Investment Director, Russ Mould.
“Shares in the Cheshire-headquartered firm loped 8%...
23 January 2018
easyJet, N Brown and Marston's“The FTSE 100 is fighting back after last week's wobble, trading 17 points higher today at 7,732. The banking sector is once again helping to lead the index, together with gains in the large drug companies,” says AJ Bell Investment Director, Russ Mould.
"A better than expected first quarter trading has given easyJet’s shares a decent lift. It is...
22 January 2018
Dixons Carphone, GVC and Connect Group“The FTSE 100 nudged 4 points higher to 7,735, propelled by gains in banking and utility stocks,” says AJ Bell investment director Russ Mould.
“ Dixons Carphone’s trading update is a big relief to the market even though the CEO is leaving and the upper end of its full year pre-tax profit guidance has been trimmed from £400m to £385m. Investors...
19 January 2018
Carpetright, Dignity and Bonmarche“The FTSE 100 edged higher after investors in Asia appeared to be protecting positions this morning, given last night's decline on Wall Street,” says AJ Bell Investment Director Russ Mould.
“ Carpetright’s shares plummeted in early trading after it slashed its profit guidance following a slump in sales. The post-Christmas period is traditionally a...
18 January 2018
Countrywide, Whitbread and Halfords“The FTSE 100 was down in early trading, extending its three-day losing streak,” says AJ Bell Investment Director Russ Mould.
“Property services group Countrywide’s shares tumbled after it warned that full year income and earnings would be down on last time. The group’s performance has been hit by a slump in its sales and lettings business with...
17 January 2018
Are hopes for a tax-cut boost to US corporate earnings simply (American) pie in the sky?All four leading US stock market indices – Dow Jones Industrials, S&P 500, Nasdaq Composite and Russell 2000 – all racked up a string of record closing highs in 2017 and one key reason for this was what, ultimately, became President Trump’s first major piece of Capitol-Hill-approved legislation, namely December’s Tax and Jobs Act.
The tax changes...
17 January 2018
Carillion pensions fallout: Four things DB members should think about"The high profile failure of Carillion and the fact that all 27,000 members of the group’s various defined benefit (DB) schemes will likely go into the Pension Protection Fund (PPF) will bring the viability of DB pensions into sharp focus once again," says Tom Selby, senior analyst at AJ Bell.
“With the scheme sponsor in such severe distress, many...
17 January 2018
Informa/UBM, Burberry and Pearson“The FTSE 100 opened on the back foot following downward trends in the US and Asia, signalling a shift in global sentiment as traders opt to lock in profits following the latest rally,” says AJ Bell Investment Director Russ Mould.
“ Informa and UBM fared very differently in early trading after agreeing to combine. Informa propped up the blue-chip...
16 January 2018
JD Sports, Provident Financial and IG Design“The FTSE 100 edged higher as investors kept their powder dry ahead of key UK inflation data due later this morning. Upbeat growth forecasts, as well as improved optimism over negotiating a satisfactory Brexit deal, has seen the pound rally in recent days,” says AJ Bell Investment Director Russ Mould.
“ JD Sports topped the FTSE 250 board...
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...
