26 October 2017
Debenhams, Barclays and National Express“Blue-chips edged higher in early trading despite ongoing uncertainty for businesses over Brexit and ahead of today's European Central Bank policy statement,” says AJ Bell Investment Director Russ Mould.
“High street bellwether Debenhams was an early riser despite full-year pre-tax profits falling by more than 44% to £59m. The group has made good...
25 October 2017
Why Lloyds’ desire for growth and investors’ desire for yield means the shares are going nowhere fast“After a long and painful retrenchment and restructuring process Lloyds’ preparation for next February’s Strategic Review suggests the lender’s management team is gearing up for a dash for growth but this may be precisely what a lot of its shareholders do not want, as they are looking for a safe utility bank which pays them a safe and reliable...
25 October 2017
Defenx, Lloyds Bank and Lombard Risk“Blue-chips opened lower despite Wall Street's strong finish with traders looking for guidance regarding the direction of the UK economy with preliminary GDP figures, high street lending and services data due to be released later this morning,” says AJ Bell Investment Director Russ Mould.
“Cyber-security software group Defenx lost more than a...
23 October 2017
GKN, Pendragon and Braemar Shipping Services“The FTSE100 opened in negative territory, despite US markets climbing on Friday. Investors remain cautious amid tensions in Catalan and the ever-present shadow of Brexit negotiations,” says AJ Bell Investment Director Russ Mould.
“Engineering giant GKN led the blue-chip board in early trading following good organic growth in the third quarter...
20 October 2017
Henry Boot, InterContinental Hotels and Interserve“Blue-chips opened the last trading day of the week on the front foot with investors focussing on company fundamentals rather than being distracted by the ongoing Brexit talks taking place in Brussels,” says AJ Bell Investment Director Russ Mould.
“Construction and property development group Henry Boot was one of the biggest FTSE All-Share risers...
19 October 2017
Unilever’s lack of volume growth may explain why advertising agencies are having a tough time“At first glance Unilever’s mildly disappointing trading update, which revealed virtually zero volume growth for the fifth quarter in a row, looks unconnected to today’s sharp share price drops at WPP and Publicis – but appearances could be deceptive and Unilever’s cost-cutting drive could have profound implications for the global advertising...
19 October 2017
Interserve, Unilever and IWG“Blue-chips slipped in early trading amid continued uncertainty around Spain and Catalonia and ongoing unpredictability over the direction of Brexit negotiations,” says AJ Bell Investment Director Russ Mould.
“ Interserve’s shares plunged after the support services and construction group warned of a 50% drop in second half operating profits and...
18 October 2017
Reckitt’s reorganisation wipes away sales growth disappointment (for now)“Health-to-hygiene group Reckitt Benckiser is bowing to the inevitable by downgrading its organic sales growth target for the year, although shareholders appear (surprisingly) unperturbed, as they focus instead on a corporate reorganisation designed to fully integrate the summer’s Mead Johnson acquisition and strip more costs out of the business,”...
18 October 2017
How to guard against a market crashMonday 19 October 1987 will live in the memory of investors as the day of Black Monday stock market crash. But this is not the only anniversary of note that has already been marked in 2017.
The Asian currency devaluations and debt crisis happened 20 years ago and we have just passed the tenth anniversary of the failure of Northern Rock.
Each date...
18 October 2017
Reckitt Benckiser, Foxtons and Flybe“Blue-chips opened higher ahead of unemployment and earnings data, while overseas markets were mixed overnight,” says AJ Bell Investment Director Russ Mould.
“ Reckitt Benckiser was one of the biggest FTSE100 fallers in early trading after like-for-like net revenues fell in the third quarter. The group continues to count the cost of a cyber attack...
17 October 2017
Investors welcome pragmatic response from Pearson but long-term problems remain“A third straight trading update without a profit warning, work to adapt the business model to boost both digital and print rental sales and the commencement of a £300 million share buyback programme on Wednesday are all giving shares in Pearson a boost today, even if long-term structural challenges still face the business,” says AJ Bell Investment...
17 October 2017
Merlin Entertainments, Hornby and Bellway“The FTSE100 edged lower ahead of today's inflation figures which could potentially trigger the widely expected underlying base rate rise from the Bank of England in November,” says AJ Bell Investment Director Russ Mould.
“Entertainment group Merlin propped up the FTSE100 board in early trading after revenue growth slowed in the wake of terror...
16 October 2017
ConvaTec, Acal and Low & Bonar“The FTSE100 opened on front foot as UK Prime Minister Theresa May headed to Brussels for emergency talks in an attempt to end the current deadlock on Brexit,” says AJ Bell Investment Director Russ Mould.
“Medical products group ConvaTec was the biggest blue-chip faller after it lowered its full-year revenue growth forecasts. The group continues...
13 October 2017
GKN falls into the FTSE 100 profit gap (and it may not be the last firm to do so either)“A profit warning means that GKN is the worst performer in the FTSE 100 today and although the impact of a pair of legal claims upon profits were hard to spot, the company’s accounts had given a few clues that it had very little margin for error if underlying trading took any sort of turn for the worse,” says AJ Bell Investment Director Russ Mould...
13 October 2017
GKN, Provident Financial and Angus Energy“The FTSE100 opened in negative territory as Brexit negotiations remained in deadlock, with mixed messages coming out of Europe and the UK on the pace of progress and current status of trade talks,” says AJ Bell Investment Director Russ Mould.
“Engineering group GKN was the biggest blue-chip faller after warning that full-year profit growth will...
12 October 2017
Recruitment firms’ figures suggest Europe is thriving as Brexit talks drag on“A first quarter-trading statement from Hays highlights the much stronger fee growth in evidence in Europe compared to the UK, completing the picture painted by trading updates from FTSE 250 recruitment agency peers Robert Walters and PageGroup,” says AJ Bell Investment Director Russ Mould.
“Although the companies have slightly different business...
12 October 2017
Enter the DragonAt the start of 2017, India was the hottest topic in town when it came to Asian financial markets. Prime Minister Modi’s reform programme and falling interest rates were supposed to supplement helpful long-term demographics to provide strong corporate earnings and a soaring stock market.
For once, the consensus view was remarkably prescient. Mumbai...
12 October 2017
Just Eat, Hays and Sky“The FTSE100 opened lower ahead of the latest house price data and credit conditions survey results. The fall was in sharp contrast to Wall Street, which marked a new high overnight, and progression on Asian markets. Disagreement among rival factions within the Government over Brexit negotiations continues to weigh on sentiment,” says AJ Bell...
11 October 2017
Smith & Nephew soars as investors await activist masterplan“Shares in orthopaedic implant and wound care specialist Smith & Nephew are surging amid (as yet unconfirmed) reports that American activist investor Elliott Management has taken a stake in the FTSE 100 firm,” says AJ Bell Investment Director Russ Mould.
“Elliott’s formidable reputation clearly precedes it, following high-profile campaigns where...
11 October 2017
Mondi, Dunelm and PageGroup“The FTSE100 opened higher despite ongoing turmoil in Catalan, further questions over the UK Government's ability to deliver a satisfactory Brexit deal and mixed messages regarding the state of the UK economy from Bank of England governor, Mark Carney,” says AJ Bell Investment Director Russ Mould.
“Packaging and paper group Mondi was the biggest...
10 October 2017
Domino’s Pizza, Robert Walters and Ted Baker“The FTSE100 confounded forecasts and opened slightly higher although investors were generally keeping their powder dry while awaiting key trade data and keeping a close eye on developing geopolitical issues,” says AJ Bell Investment Director Russ Mould.
“ Domino’s Pizza was the biggest FTSE250 riser in early trading after a double-digit jump in...
9 October 2017
Trinity Mirror, DX and Centamin“Blue-chips nudged lower at the start of the week with ongoing discontent among major business leaders over the pace of Brexit negotiations weighing on sentiment,” says AJ Bell Investment Director Russ Mould.
“ Trinity Mirror’s shares edged higher despite a steep drop in third-quarter revenues. The group remains bullish about its full-year...
6 October 2017
easyJet, Hollywood Bowl and Lonmin“The FTSE100 opened on the front foot following another record breaking session on Wall Street overnight and a strong performance in Asia this morning, as sentiment remains upbeat despite ongoing political and economic concerns,” says AJ Bell Investment Director Russ Mould.
“Low-cost airline easyJet was the biggest blue-chip faller in early...
5 October 2017
DFS, De La Rue and Caledonia Mining“Blue-chips opened a shade higher with investors continuing to assess the likely economic impact of Prime Minister Theresa May's policy setting speech at the Conservative Party conference. The modest rise for the FTSE100 comes after US markets reached new record levels overnight as the Wall Street bubble continued and with Asian markets generally...
5 October 2017
What oil stocks could be telling investorsFor all of the confusion over Brexit, the Bank of England’s plans for interest rates and the trajectory of the UK economy (which for choice looks to be losing momentum again), one thing does seem clear: the FTSE 100 is doing a very good job of going nowhere fast.
FTSE 100 has gone sideways for 18 monthsSource: Thomson Reuters Datastream
Perhaps...
4 October 2017
Tesco still has work to do even as margins and dividend show benefits of turnaround plan“ Tesco’s shares are below where they were a year ago (despite a 6% advance in the FTSE 100 over the same period) and today’s results show why, even if investors will be delighted to see the company reinitiate dividend payments with an interim cash distribution of 1p per share,” says AJ Bell Investment Director Russ Mould.
“Trading slowed a little...4 October 2017
Tesco, Topps Tiles and International Personal Finance“The FTSE100 edged lower in early trading despite US and Asian markets registering solid gains. Investors will be looking at UK services data later this morning and US job figures this afternoon,” says AJ Bell Investment Director, Russ Mould.
“Supermarket giant Tesco topped the blue-chip board in early trading after it resumed dividend payments...
3 October 2017
Ferguson, Greggs and Revolution Bars“The FTSE100 was virtually flat in early trading and it failed to match the strong gains on Wall Street overnight and in Asia this morning,” says AJ Bell Investment Director Russ Mould.
“Heating and plumbing group Ferguson led the blue-chip board in early trading following strong full-year results and the launch of a £500m share buyback. The UK...
2 October 2017
Monarch’s demise shows how only the financially strong can rule the airline marketAfter three bail-outs in the last three years, budget airline Monarch has finally been grounded, weighed down by operational losses and leasing payments on its aircraft fleet at a time when competition between carriers remains as fierce as ever.
The decline of the pound (increasing fuel costs and potentially crimping consumer spending via inflation...
2 October 2017
Stanley Gibbons, James Halstead and Daily Mail and General Trust“The FTSE100 started the week on the front foot, with the global equities rally continuing as US markets posted handy gains on Friday and with Asian markets making positive progress this morning,” says AJ Bell Investment Director Russ Mould.
“Stamp and coin auctioneer Stanley Gibbons was a double-digit faller in early trading after full year...
29 September 2017
Purplebricks, CVS Group and Beazley“The FTSE100 opened the final session of the trading week in positive territory following on from a strong showing on Wall Street and in Asia. A key focus for investors will be a raft of economic news due later this morning, including quarterly GDP figures, details of the current account deficit and house price data,” says AJ Bell Investment...
28 September 2017
DX, Inland Homes and Moss Bros“Blue-chips were down in early trading despite decent gains on Wall Street overnight after President Trump unveiled his much-anticipated tax plan. Investors will be keeping a close eye on the Bank of England conference, starting in London today, with policy makers from some of the world's largest economies due to speak,” says AJ Bell Investment...
27 September 2017
The lessons everyone can learn from JapanWith the Nikkei 225 and Topix stock benchmarks touching two-year peaks, the yen at a 12-month high against the dollar and the economy putting together its best streak of quarterly GDP increases for a decade, investors could be forgiven for thinking that everything in the Japanese garden is rosy.
Yet the Nikkei 225 has underperformed for the second...
27 September 2017
Hotel Chocolat, Grainger and FairFX“Blue-chips opened on the front foot despite mixed signals from overseas markets although sentiment remains subdued following the German election result and the ongoing verbal conflict between the US and North Korea,” says AJ Bell Investment Director Russ Mould.
“ Hotel Chocolat’s shares were up in early trading after the group declared a maiden...
26 September 2017
Card Factory, Thomas Cook and AG Barr“Blue-chips opened in negative territory following falls in the US and Asia amid concerns for global growth and ongoing geopolitical tension,” says AJ Bell Investment Director Russ Mould.
“Greeting cards retailer Card Factory was the biggest FTSE250 faller in early trading despite an increase in first half sales and declaring a special dividend...
25 September 2017
Uber breaks two key rules as investors must now join regulators in asking serious questionsWhatever the rights and wrongs of the decision by Transport for London not to renew Uber’s licence, the failure by the world’s largest start-up to abide by two simple rules means it still has a long way to go to permanently win over customers, regulators and investors, whether you believe its $68 billion valuation or not.
“Some will argue that TfL...
25 September 2017
Gleeson, Imagination Technologies and Elecosoft“The FTSE100 opened in the red with politics to the fore amid elections in Germany and New Zealand and a potential snap election in Japan. Investors are also keeping a close eye on rising geopolitical tensions after President Trump extended the US travel ban and stepped up his rhetorical campaign against North Korea,” says AJ Bell Investment...
21 September 2017
Mitchells & Butlers, Anglo Asian and Safestyle“The FTSE 100 edged up after the US Federal Reserve said that while interest rates would remain unchanged, the central bank intended to start the process of tightening while at home investors continue to mull the Government's handling of Brexit negotiations,” says AJ Bell Investment Director Russ Mould.
Mitchells & Butlers’ shares edged lower in...
20 September 2017
Character Group, Kingfisher and Babcock“The FTSE100 opened slightly higher following stronger advances in the US and Asian markets with recent Brexit and political developments adding an element of caution in the City,” says AJ Bell Investment Director Russ Mould.
“ Character Group was a double-digit faller after Toys ‘R’ Us filed for bankruptcy protection in the US and Canada...
19 September 2017
French Connection, Gulf Marine Services and Flowgroup“Blue-chips edged lower in early trading following yesterday’s strong start to the week and despite further gains in the US overnight,” says AJ Bell Investment Director Russ Mould.
“ French Connection saw an improved performance across all its divisions in the first half of the year but there is still much to do achieve its goal of returning to...
18 September 2017
Lack of forecast upgrades explains why FTSE 100 is becalmedThe FTSE 100 is making heavy weather of making fresh gains and reaching new all-time highs and one possible explanation for its pedestrian progress is that earnings forecasts have stopped going up.
“The spring’s March to a fresh record peak above 7,500 coincided with strong increases to analysts’ consensus earnings expectations, themselves the...
18 September 2017
Dairy Crest, Finsbury Food and Hiscox“Blue-chips opened on the front foot after US markets reached record levels on Friday. Stocks in Asia also advanced this morning, as the appetite for equities started to return,” says AJ Bell Investment Director Russ Mould.
“ Dairy Crest edged up in early trading as the popularity of its key brands, Cathedral City, Clover, Country Life and...
15 September 2017
JD Wetherspoon, The Gym Group and Purplebricks“The FTSE100 opened in negative territory as investors attempted to weigh up the potential impact of a further missile launch over Japan by North Korea,” says AJ Bell Investment Director Russ Mould.
“Pub group JD Wetherspoon topped the FTSE250 board in early trading after an increase in full-year profits. The group has also seen an encouraging...
14 September 2017
How to assess whether UK stocks can raise a gallop to the end of the yearAny investors who followed the old market maxim “Sell In May” will hopefully not feel too sore, as the FTSE 100 made awfully hard work of scratching out a 2% capital gain during the summer months.
But a gain is a gain and the index’s ability to make any progress at all in the face of the ongoing Brexit negotiations, heated rhetoric between North...
14 September 2017
Next, Interserve and GVC Holdings“The FTSE100 was lower in early trading ahead of today's monetary policy statement from the Bank of England, with interest rates widely expected to be kept on hold following the latest inflation figures. Asian markets were trading lower this morning, while US stocks made further progress overnight,” says AJ Bell Investment Director Russ Mould.
...
13 September 2017
Investors have bought on the Apple rumours – will they now sell on the facts?“Investors looking for a windfall from shares in Apple or the companies who supply it (such as Laird, IQE and Renishaw) may need to be patient, as the new iPhone X looks evolutionary rather revolutionary, the product is not available until November and in many cases the shares have already done very well," says AJ Bell Investment Director Russ...
13 September 2017
Galliford Try, Dunelm and Billing Services Group“Blue-chips opened in negative territory as global market sentiment remains mixed and with traders awaiting UK employment and wage data,” says AJ Bell Investment Director Russ Mould.
“ Galliford Try was an early riser on the back of a strong underlying performance in the year to the end of June. One-off costs relating to legacy contracts in its...
12 September 2017
Analysts think the banks are fine (but investors don’t believe them), ten years after the Rock rolled over"Ten years after Northern Rock customers queued outside the bank for their cash, analysts believe the five remaining FTSE 100 banks are in such good health that they are about to return to the profit levels of a decade ago – but it does not look as if investors believe them.
"Research from AJ Bell shows that aggregate pre-tax profit forecasts for...
12 September 2017
Ashtead powers higher but investors must be wary of the broken window fallacyShares in Ashtead are up sharply after the equipment rental expert issued an upbeat first-quarter trading update and floated the prospect of a boost to future business from America’s efforts to clean up after the devastation wrought by Hurricanes Irma and Harvey.
Temporary power equipment supplier Aggreko is also up a touch as shareholders ponder...
12 September 2017
Ashtead, JD Sports and Hilton Food“The FTSE100 built on yesterday's steady gains after MPs voted in favour of the EU Withdrawal Bill and ahead of a busy day for economic news, including the latest UK inflation figures. A ruling made by the United Nations to place further sanctions on North Korea appeared to settle a few nerves overseas with Asian markets pushing higher,” says AJ...