Upstream Share Discussion Threads

[master rsi] 23/10/2024 11:16

KEEP an EYE

BOOM 202.50p( 200 v 205p )

After the News last week of everything improving and share price reaching 250p, today's drop it has reached a support price and the Indicators at oversold.
----------------- Intraday ------------------------------------------ 2 months ------------------------------- 1 year -------------------
INDICATORS

[master rsi] 23/10/2024 11:10

How the UPS are performing during last month

[master rsi] 23/10/2024 11:02

How the UPS are performing today

[master rsi] 23/10/2024 10:33

WPP reports third quarter growth and backs full year guidance
(Alliance News) - WPP PLC on Wednesday reported revenue growth for its third quarter, and it reiterated its full year guidance.

Shares in WPP were trading up 4.1% at 805.20 pence on Wednesday morning in London, among the best large-cap performers.

The FTSE 100-listed advertising company recorded a 1.4% increase in third-quarter revenue to GBP3.56 billion from a year prior. It climbed 4.1% like-for-like. It said net new billings for the period increased on-year to USD1.5 billion from USD1.4 billion.

Revenue less pass-through costs declined 2.6% on-year to GBP2.77 billion, but rose 0.5% on a like-for-like.

The London-based firm secured notable client wins throughout its third quarter, including e-commerce firm Amazon.com Inc, consumer goods firm Unilever PLC and chemical company Henkel AG & Co KGaA. It also acknowledged a positive start to this quarter with existing clients, including coffee chain Starbucks Corp and consumer electronics firm Honor Device Co Ltd.

WPP confirmed it is on track to sell its majority stake in communications consultancy FGS Global during the final stretch of the year. It agreed to sell its roughly 50% interest in August to an acquisition vehicle with funds managed or advised by private equity firm Kohlberg Kravis Roberts & Co LP.

The consideration for the sale is USD775 million, payable in cash. WPP said Wednesday it expects post-tax proceeds of GBP604 million to go towards trimming debt.

WPP Chief Executive Mark Read said: "Our third quarter delivered like-for-like growth in net sales, with a strong performance from GroupM in particular. We saw growth in North America, Western Continental Europe and India, though trading in China remains difficult.

"We are encouraged by progress during the quarter, but with recent new business wins primarily impacting 2025 and continuing macroeconomic pressures our expectations for the full year remain unchanged."

For the whole of 2024, it still expects a like-for-like revenue, excluding pass-though costs, outcome ranging from a 1% fall to flat from 2023. It said the fourth-quarter is "facing a tougher comparative" than the third, as well as "macro uncertainty".

[master rsi] 23/10/2024 10:21

The MARKET has gone RED once again, mainly mid-cap down 94 points

[master rsi] 23/10/2024 08:48

MARKET REPORT
LONDON MARKET OPEN: Dollar marches on; Reckitt, WPP, Barratt impress

(Alliance News) - Stock prices in London opened higher on Wednesday, shaking off fading US rate cut enthusiasm, amid some well-received early UK corporate updates.

The FTSE 100 index traded up 13.14 points, 0.2%, at 8,319.68. The FTSE 250 was up 26.44 points, or 0.1%, at 20,976.09, and the AIM All-Share added 0.61 of a point, 0.1%, at 734.77.

The Cboe UK 100 was up 0.1% at 832.85, the Cboe UK 250 rose 0.2% to 18,557.75, and the Cboe Small Companies lost 0.2% at 16,848.94.

The CAC 40 in Paris was flat, and Frankfurt's DAX 40 added 0.5%.

In New York on Tuesday, the Dow Jones Industrial Average and S&P 500 ended marginally lower. The Nasdaq Composite added 0.2%.

The FTSE 100 index traded down 29.08 points, 0.4%, at 8,289.16. The FTSE 250 was down 34.05 points, or 0.2%, at 20,872.55, and the AIM All-Share was down just 0.10 of a point at 734.85.

The Cboe UK 100 was down 0.4% at 829.88, the Cboe UK 250 fell 0.1% to 18,438.95, and the Cboe Small Companies lost 0.1% at 16,921.46.

The CAC 40 in Paris was down 0.1% but Frankfurt's DAX 40 added 0.1%.

In Tokyo on Wednesday, the Nikkei 225 lost 0.8%, but in China, the Shanghai Composite was 0.5% higher. In Hong Kong, the Hang Seng Index was up 1.4%. Sydney's S&P/ASX 200 added 0.1%.

The pound fell to USD1.2970 early Wednesday, from USD1.2973 at the time of the London equities close on Tuesday. Versus the dollar, the euro ebbed to USD1.0780 from USD1.0808. Against the yen, the greenback jumped to JPY152.49 from JPY151.06.

"The dollar continues to benefit from a wide range of supporting factors. US 10-year Treasury yields have risen by 15bp since the start of the week, the 2-year USD overnight index swap is inching higher again with only 37bp of Fed easing now in the price, oil prices are rebounding and the proximity to a closely contested US election can continue to favour deleveraging and defensive repositioning," analysts at ING commented.

"For now, the most interesting G10 pair remains USD/JPY. After clearing the 151.3 200-day moving average level, there is no clear technical resistance level into 155.0."

Central bankers will be in focus in what is an otherwise quiet day on the economic calendar.

Bank of England Governor Andrew Bailey and European Central Bank President Christine Lagarde have speak on Wednesday. The Bank of Canada, meanwhile, announces an interest rate decision at 1445 BST.

Analysts at Commerzbank commented: "After the developments of the past few weeks, there is much to suggest that it will accelerate the pace of rate cuts. Just a few weeks ago, BoC Governor Tiff Macklem hinted that larger moves might be appropriate at upcoming meetings. Initially, the market was doubtful, but with inflation recently falling by a surprisingly large margin and now threatening to undershoot the target, sentiment has changed. The surprise has become part of a remarkable period of disinflation in which price pressures have nearly collapsed."

In London, advertising firm WPP was the best large-cap performer, adding 4.6%. It backed guidance after a third-quarter revenue rise, though it cautioned on a tough comparative and tricky market conditions for the final stretch of the year.

Third-quarter revenue rose 1.4% on-year to GBP3.56 billion, the advertising firm said. Excluding pass-through costs, however, revenue fell 2.6% to GBP2.77 billion.

It won deals with the likes of Amazon, Unilever and Starbucks during the quarter.

For the whole of 2024, it still expects like-for-like revenue, excluding pass-though costs, outcome ranging from a 1% fall to flat from 2023. It said the fourth-quarter is "facing a tougher comparative" than the third, as well as "macro uncertainty".

Barratt Redrow rose 3.1%. It said it is "beginning to see more stable market conditions" in the housebuilding sector.

The company, now in an "exciting new chapter" with the tie-up of Barratt Developments and Redrow now in force, warned it may still take some time for consumer confidence to recover.

"Long-term housing market fundamentals continue to reflect a significant imbalance between housing supply and demand. The new government has demonstrated that it is committed to improving the planning system and addressing funding challenges in the affordable housing sector. Whilst these supply-side reforms will also take some time to be fully implemented, we are confident that they will help to unlock permissioned land supply and the delivery of more high-quality, sustainable homes across the country," the company said.

Also rising, Reckitt climbed 2.8%. It said its third-quarter business was in line with guidance, with revenue in its Health and Hygiene arms improving, though there was a decline in the Nutrition division amid "supply-related challenges".

The consumer goods firm, with brands such as Air Wick and Dettol in its stable, said net revenue in the third-quarter fell 4.0% on-year to GBP3.46 billion. On a like-for-like basis, it weakened 0.5%.

Hygiene revenue fell 1.4% on a reported basis but increased 2.1% like-for-like. Health revenue was down 0.4%, but up 3.2% like-for-like.

Reckitt's hygiene brands include Vanish and Harpic. Among its Health products are Nurofen and Strepsils.

In Nutrition, which includes the Enfamil baby formula products, revenue dropped 21%, and 17% like-for-like.

Nutrition's performance was "primarily impacted by around GBP100 million of supply-related challenges from the Mount Vernon tornado in July, which reflects a better-than-expected recovery of inventories."

In July, the firm said the tornado in Indiana struck a third party warehouse "which sustained significant damage". The site in Mount Vernon is "important" for the Mead Johnson Nutrition business, Reckitt explained in July, as it houses a "mix of raw materials and finished products".

Hochschild Mining was the best mid-cap performer, up 6.1%, with the stock getting a boost from strong output figures, as well as a robust gold price.

"Hochschild Mining's third quarter has been the strongest in almost five years and we expect to meet our full year production target. In Brazil, our new Mara Rosa mine has been steadily ramping up to full production rates in the period and the Inmaculada flagship mine in Peru has continued to deliver the benefits from our continuous improvement programme. Furthermore, given the current strength of our balance sheet, we were able to repay approximately USD45 million of debt. With the current metal price momentum along with the forecast strong production in the last quarter, we can look forward to further robust cashflow generation," Chief Executive Officer Eduardo Landin said.

Attributable gold equivalent production in the third-quarter of 2024 improved to 96,330 from 81,620 a year prior, and 83,030 a quarter earlier.

The firm added: "The company reiterates that it is on track to meet its overall attributable production target for 2024 of 343,000-360,000 gold equivalent ounces.

"The impact from Mara Rosa's previously disclosed ramp-up issues during Q2 will be offset by stronger production at Inmaculada resulting from the mine's ongoing continuous improvement projects."

Gold rose to USD2,752.61 an ounce early Wednesday, up from USD2,739.35 late Tuesday afternoon. It hit a record high above USD2,753 earlier Wednesday morning.

"One of the main factors behind this surge is the electoral uncertainty in the United States, which has caused greater volatility in financial markets. As the elections draw near, speculations about potential changes in the country's economic policy are prompting investors to seek more stable assets, such as gold. This behaviour is expected in highly polarized election periods, where political outcomes may impact the economic future," XS.com analyst Antonio Ernesto Di Giacomo commented.

"Another key factor is the increasing demand for gold as a safe haven, which has risen by more than 30% this year. Geopolitical tensions, especially the war in the Middle East, have raised uncertainty levels worldwide. Investments in gold typically rise during periods of conflict as investors look to safeguard their capital against international instability. Additionally, expectations of more flexible monetary policies, such as potential interest rate cuts by central banks, contribute to the increased demand for this precious metal."

Back in London, Cordel rose 8.5%. Its technology for electrified lines was backed by UK rail infrastructure manager Network Rail.

"This Network Rail certification covers the entire Cordel pipeline, with point cloud capture from Cordel Mobile Laser Scanning systems flowing seamlessly through Cordel's automated AI processing. Cordel's accurate height and stagger measurements either confirm standards compliance or identify where deviation is developing, so that timely corrective action can be taken to prevent incidents. Up-to-date height and stagger measurements also help optimise other infrastructure interventions, such as allowing the track to be overlifted higher to increase maintenance intervals," Cordel added.

A barrel of Brent was quoted at USD75.27 early Wednesday, down from USD75.86 late Tuesday.

[master rsi] 23/10/2024 07:52

Barratt Redrow sees more stable market conditions
(Alliance News) - Barratt Redrow PLC on Wednesday noted a continued significant imbalance between housing supply and demand as it began "to see more stable market conditions" in the housebuilding sector.

The Leicestershire, England-based housebuilder, now in an "exciting new chapter" with the tie-up of Barratt Developments and Redrow now in force, warned it may still take some time for consumer confidence to recover.

The company gave an update for the time between the start of its first financial quarter on July 1, and October 13, as it held its annual general meeting.

Between July 1 and October 13, Barratt standalone had 305 average active sales outlets, down 17% from 369 between July 1 and October 15 in 2023.

"Long-term housing market fundamentals continue to reflect a significant imbalance between housing supply and demand. The new government has demonstrated that it is committed to improving the planning system and addressing funding challenges in the affordable housing sector. Whilst these supply-side reforms will also take some time to be fully implemented, we are confident that they will help to unlock permissioned land supply and the delivery of more high-quality, sustainable homes across the country," Barratt Redrow said.

The company expects at least GBP90 million of cost synergies following the GBP2.52 billion acquisition of Redrow in August, a smaller housebuilding peer. It anticipates revenue synergies from 45 incremental sales outlet openings through until financial year 2028.

The outlook for the standalone Barratt operations are unchanged. It expects annual home completions there, including joint-ventures, between 13,000 and 13,500. For the whole Barratt Redrow group, completions are expected to be between 16,600 and 17,200.

For financial 2024, Barratt Developments had reported 14,004 home completions, down 19% from 17,206 in financial 2023.

Barratt Redrow shares rose 3.6% to 490.20 pence each on Wednesday morning in London.

[master rsi] 23/10/2024 07:34

LONDON BRIEFING:
(Alliance News) - London's FTSE 100 is called to open a touch lower on Wednesday, while the dollar continued to rise as US interest rate cut bets are being dialled back.

The odds of a rate hold by the Federal Reserve next month have increased to around 11%, according to the CME FedWatch Tool. Though such an outcome is still seen as unlikely, the odds of a hold had stood around 6% this time last week.

"Investors are navigating a tangled web of geopolitical tensions in the Middle East, a Federal Reserve turning out less dovish than expected, and the sudden reawakening of the 'Trump Trade.' The latter has shaken the bond market, forcing some bond traders to pull their heads out of the sand as real jitters emerge about the fiscal landscape post-election," SPI Asset Management analyst Stephen Innes commented.

Central bankers will be in focus in what is an otherwise quiet day on the economic calendar.

Bank of England Governor Andrew Bailey and European Central Bank President Christine Lagarde have speak on Wednesday. The Bank of Canada, meanwhile, announces an interest rate decision at 1445 BST.

In early UK corporate news, Lloyds Banking Group and WPP backed guidance.

MARKETS

FTSE 100: called down 0.1% at 8,300.34

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Hang Seng: up 1.0% at 20,712.28

Nikkei 225: down 0.8% at 38,104.86

S&P/ASX 200: up 0.1% at 8,216.00

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DJIA: closed down 6.71 points at 42,924.89

S&P 500: closed down 2.78 points at 5,851.20

Nasdaq Composite: closed up 0.2% at 18,573.13

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EUR: lower at USD1.0794 (USD1.0808)

GBP: flat at USD1.2974 (USD1.2973)

USD: higher at JPY152.27 (JPY151.06)

GOLD: higher at USD2,748.64 per ounce (USD2,739.35)

OIL (Brent): lower at USD75.24 a barrel (USD75.86)


ECONOMICS

Wednesday's key economic events still to come:

Annual meeting of IMF and World Bank continues

15:00 BST eurozone consumer confidence

15:00 BST eurozone European Central Bank President Christine Lagarde speaks

14:00 BST UK Bank of England Deputy Governor Sarah Breeden speaks

21:30 BST UK Bank of England Governor Andrew Bailey speaks

15:00 BST US existing home sales

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UK Chancellor Rachel Reeves has said she is "sympathetic towards the mess" her Cabinet colleagues have faced, after it was reported that Prime Minister Keir Starmer was facing backlash from his ministers over cuts that could come at next week's budget. Reeves has told the BBC it is "perfectly reasonable" that ministers "set out their case" to Number 10 and Number 11 ahead of the fiscal event, and warned problems cannot "just be magicked away". Speaking to Radio5Live from Downing Street in an interview due to be broadcast on Wednesday, she said: "I'm very sympathetic towards the mess that my colleagues have inherited. I understand those challenges, but also my colleagues understand the challenges that we face as a government in making sure that the sums. "It is perfectly reasonable that Cabinet colleagues set out their case, both to me as chancellor and to the prime minister, about the scale of the challenges that they find in their departments. It's been a really constructive process."

Last week, it was reported that the prime minister was facing backlash from senior ministers over potential departmental spending cuts. The prime minister has previously warned that the budget next Wednesday would be "painful", and ministers have been referring to the "black hole" in the public finances since they entered office.

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UK Prime Minister Starmer has insisted his relationship with Donald Trump is not in jeopardy after the presidential candidate's campaign claimed the Labour Party was interfering in the US election. A statement on Trump's website, DonaldJTrump.com on Tuesday night announced an official complaint had been filed with US federal election officials, and claimed the Labour Party had "made, and the Harris campaign has accepted, illegal foreign national contributions". The complaint follows reports of senior Labour officials meeting with Kamala Harris' campaign, and Labour Party staffers volunteering on the ground for her campaign. Asked if it was a mistake for senior staffers to have met with the Harris campaign, Starmer insisted any members of his party were in the US on an entirely voluntary basis, similar to in previous elections. "That's what they've done in previous elections, is what they're doing in this election. And that's really straightforward," he told reporters as he travelled to Samoa for a meeting of Commonwealth leaders. Pressed further about whether Labour officials' involvement in the Harris-Waltz Democrat campaign could jeopardise his relationship with Trump if the ex-president wins re-election, Starmer replied: "No."

BROKER RATING CHANGES

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Jefferies raises Ibstock to 'buy' (hold) - price target 251 (200) pence

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RBC cuts Sabre Insurance price target to 180 (200) pence - outperform

COMPANIES - FTSE 100

Lloyds Banking Group affirmed its annual outlook, after a "robust financial performance" in the third-quarter of 2024. Earnings during the period weakened, however, as net interest income declined. Pretax profit was 1.9% lower on-year at GBP1.82 billion from GBP1.86 billion. Pretax profit beat company-compiled consensus of GBP1.6 billion, however. Net income fell 3.7% to GBP4.35 billion from GBP4.51 billion, as a 6.2% fall in underlying net interest income to GBP3.23 billion hurt its bottom line. "The group delivered a robust financial performance in the third quarter of 2024, with growth in income alongside continued cost discipline and strong asset quality. Our performance allows us confidently to reaffirm our 2024 guidance," Chief Executive Charlie Nunn said. For the full-year, it still expects a banking net interest margin "of greater than 290 basis points". For the third-quarter, the banking NIM fell 13 basis points on-year to 2.95% from 3.08%.

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Reckitt Benckiser said its third-quarter was in line with guidance, with revenue in its health and hygiene arm improving, though there was a decline in the nutrition division amid "supply-related challenges". The consumer goods firm, with brands such as Air Wick and Dettol in its stable, said net revenue in the third-quarter fell 4.0% on-year to GBP3.46 billion. On a like-for-like basis, it weakened 0.5%. Hygiene revenue fell 1.4% on a reported basis but increased 2.1% like-for-like. Health revenue was down 0.4%, but up 3.2% like-for-like. In Nutrition, which includes the Enfamil baby formula products, revenue slumped 21%, and 17% like-for-like. Nutrition's performance was "primarily impacted by around GBP100 million of supply-related challenges from the Mount Vernon tornado in July, which reflects a better-than-expected recovery of inventories." The firm said it is on track to meet full-year targets. All units are "well placed to deliver strong LFL net revenue growth in Q4". Reckitt unveiled plans for a wide-ranging shake-up back in January. Reckitt plans to focus on a portfolio of 'powerbrands', which it defined as high-growth, high-margin businesses that it thinks have the potential for long-term growth. These include Mucinex, Strepsils, Gaviscon, Nurofen, Lysol, Dettol, Harpic, Finish, Vanish, Durex and Veet. The company plans to sell non-core home care brands including Air Wick, Mortein, Calgon and Cillit Bang. The Times last week Thursday had reported Apollo Global Management, KKR and Clayton, Dubilier & Rice are among the buyout firms mulling a bid for the home care brands porfolio. Reckitt adviser Morgan Stanley had sent possible suitors a "teaser" document, The Times reported.

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Barratt Redrow said it is "beginning to see more stable market conditions" in the housebuilding sector. The company, now in an "exciting new chapter" with the tie-up of Barratt Developments and Redrow now in force, warned it may still take some time for consumer confidence to recover. "Long-term housing market fundamentals continue to reflect a significant imbalance between housing supply and demand. The new government has demonstrated that it is committed to improving the planning system and addressing funding challenges in the affordable housing sector. Whilst these supply-side reforms will also take some time to be fully implemented, we are confident that they will help to unlock permissioned land supply and the delivery of more high-quality, sustainable homes across the country," the company said. The outlook for the standalone Barratt operations are unchanged. It expects annual home completions there, including joint-ventures, between 13,000 and 13,500. For the whole Barratt Redrow group, completions are expected to be between 16,600 and 17,200. Its financial year ends in June.

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WPP backed guidance after a third-quarter revenue rise, though it cautioned on a tough comparative and tricky market conditions for the final stretch of the year. Third-quarter revenue rose 1.4% on-year to GBP3.56 billion, the advertising firm said. Excluding pass-through costs, however, revenue fell 2.6% to GBP2.77 billion. It won deals with the likes of Amazon, Unilever and Starbucks during the quarter. For the whole of 2024, it still expects like-for-like revenue, excluding pass-though costs, outcome ranging from a 1% fall to flat from 2023. It said the fourth-quarter is "facing a tougher comparative" than the third, as well as "macro uncertainty".

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The EU on Tuesday said it has conditionally approved British sports fashion retailer JD Sports Fashion's EUR520-million bid for French peer Courir. JD Sports first announced its plans in May last year as it pursued expansion in Europe and North America. The European Commission, the EU's antitrust regulator, gave the green light for the purchase after the companies offered commitments to address the bloc's concerns. The remedies offered include divesting all Courir stores in Portugal and several shops in certain parts of France to Snipes, a "direct competitor" in the leisure sports goods market, the commission said. "We had concerns that the acquisition of Courir by JD Sports could affect the retail markets for sports footwear in France and Portugal," EU competition chief Margrethe Vestager said in a statement. "The divestiture of certain Courir stores to Snipes will preserve competition in these markets, to the benefit of consumers in terms of prices, quality and choice," she added.

COMPANIES - FTSE 250

Watches of Switzerland Group has faced a call to shift its primary listing to New York, in a move which mean it exits the FTSE 250 index. Gatemore Capital Management, though impressed with the "track record" of the luxury watches seller, believes it must move its primary listing to New York to "fully unlock the value of its stock". Gatemore in September said it owned 1.9 million WoSG shares, which would equate to a roughly 0.8% stake. Gatemore said on Wednesday: "In order for WOSG to fully unlock the value of its stock, we are now calling for the company to move its primary listing to the US, a key growth market around which WOSG is already pursuing an ambitious growth strategy. As a result of this, we expect WOSG to generate the majority of its future revenues from the US market; now is the time for this listing change."

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British Land said it has made its chief operating officer its new finance chief, with effect next month. David Walker, who currently does not sit on the property firm's board, will take up a seat when he becomes CFO on November 20. As COO, he is on British Land's executive committee. British Land said: "David joined British Land in 2017. He qualified as a Chartered Accountant with PwC, before spending over seven years in various roles within the Corporate Finance division at Deutsche Bank. After that, he worked for over 10 years in investor relations, strategy, finance and corporate development roles within UK listed businesses." Walker replaces Bhavesh Mistry, who was named as the next CFO of DIY retailer and B&Q owner Kingfisher back in June. Mistry will step down from the British Land board and his CFO position there next month. Kingfisher in June said Bernard Bot, its current finance chief, will step down no earlier than January. It is yet to announce an exact start date for Mistry.

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The UK's competition watchdog is probing whether brewer Carlsberg's planned buy of Britvic will "result in a substantial lessening of competition". Britvic, behind drinks brands Robinsons, J2O and Tango, accepted a GBP3.3 billion takeover approach from Copenhagen-based Carlsberg back in July. The CMA said it has launched its merger inquiry and has until December 18 to make a phase one decision.

OTHER COMPANIES

Gem Diamonds said its revenue rose in the third-quarter as it sold more carats. Revenue in the third-quarter rose 23% to USD42.7 million from USD34.8 million in the second-quarter. It said 26,617 carats were sold during the period, up from 24,422 carats in the second. "Six diamonds sold for more than USD1.0 million each, contributing USD22.6 million to the revenue for the period," the diamond miner in Lesotho and Botswana said.

[master rsi] 23/10/2024 07:20

FTSE

On the up with 13 point

[master rsi] 22/10/2024 22:53

EEE

The Aquis 125K BUY trade missing at ADVFN

2024-10-22, 09:09 6.94999 125,138

[master rsi] 22/10/2024 22:36

G4M 177p (5.50p / 3.21%) - Gear4music sees narrowed loss despite first-half sales drop

Gear4music Holdings PLC - York, England-based instruments and music equipment retailer - Expects to report fall in revenue to GBP61.7 million in the six months to September 30 from GBP62.6 million a year prior. Further, sees gross profit lower at GBP16.5 million from GBP17.0 million. But pretax loss is expected to narrow to GBP0.7 million from GBP1.2 million. Says returned to revenue growth in the second quarter with sales up 1% after falling 4% in the first quarter.

Gross margin is expected to be 26.7%, an improvement on 26.3% a year ago. Full-year outlook remains in-line with consensus market expectations, as notes stronger growth achieved during October trading to date. Feels well-positioned and prepared for the upcoming peak seasonal trading period. Gear4music puts consensus for revenue in year to March at GBP154.7 million and pretax profit of GBP2.8 million.

[master rsi] 22/10/2024 22:06

HSBC hikes target price on Morgan Sindall

(Sharecast News) - Analysts at HSBC raised their target price on construction firm Morgan Sindall from 2,930.0p to 3,615.0p on Tuesday following the group's trading update.

HSBC said Morgan Sindall has long prided itself on balance sheet discipline and finds itself the net beneficiary of a competitive landscape where ISG has gone into administration, noting its strong balance sheet has become more of a competitive advantage.

The UK bank, which stood by its 'buy' rating on the stock, stated new competition will enter the market, attracted by the structural growth of fit-out, but said Morgan Sindall appears to be winning business at "a very healthy rate".

"We lift our 2024e adj. PBT forecast by c12% to reflect the current ability to win contracts. We expect this to last into 2025e and lift our 2025e adj. PBT by c8%. The 10-year +/-1sd historical 12-month forward PE range got MGNS is 8.2-11.3x. We set our target price based on a target PE multiple of 13.5x (from 12.0x), now at a premium to the historical range due the supportive plans of the UK's new government, a return to profitability nearing for Property Services, and the competitive strength in Fit Out, itself a growing market," said HSBC.

"For us, that builds further on the group's order book visibility, record of execution, and benefits demonstrated from its diversified exposures. We apply our target multiple to our revised 2025e EPS estimate of £2.72 (from £2.52), which results in a year-end fair value of 3,674.0p that we discount back at a 10% annualised required rate of return to set our TP at 3,615.0p (rounded). Our TP implies circa 11% upside."
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MGNS 3,900p (+650p / 20.00%), well ahead of price target 3.615p

[master rsi] 22/10/2024 21:09

MARKET REPORT
LONDON MARKET CLOSE: Stocks search for direction but gold shines again

(Alliance News) - London's FTSE 100 shrugged off a weak start to recoup most early losses on Tuesday, as the International Monetary Fund pointed to brighter economic fortunes in the UK.

The FTSE 100 index closed down 11.70 points, or 0.1%, at 8,306.54. The FTSE 250 ended up 43.05 points, or 0.2%, at 20,949.65, and the AIM All-Share lost 0.79 of a point, 0.1%, at 734.16.

The Cboe UK 100 closed down 0.2% at 831.88 on Monday, the Cboe UK 250 ended up 0.3% at 18,521.29, and the Cboe Small Companies fell 0.4% at 16,873.56.

In European equities on Tuesday, the CAC 40 in Paris ended flat while Frankfurt's DAX 40 eased 0.1%.

Supporting the DAX, SAP climbed 2.1% after strong third-quarter results and raised guidance.

Late Monday, SAP, the Walldorf, Baden-Wurttemberg, Germany-based software firm, raised its outlook for cloud and software revenue, operating profit and free cash flow.

Deutsche Bank called it an "impressive" and "nearly flawless" third quarter.

In New York, the Dow Jones Industrial Average was down 0.2%, the S&P 500 was also 0.2% lower and the Nasdaq Composite ebbed 0.1%.

Markets across the pond have been reacting to more hawkish chat surrounding the likely path of interest rates in the US.

According to the CME FedWatch Tool, there is a 13% chance the US central bank leaves rates unmoved at the 4.75%-5.00% range at its November meeting. Though it is still odds on to cut by 25 basis points, a hold this time last week was seen as slim to none.

"Yesterday equity prices moved lower and Treasury yields moved higher as "no landing" scenarios are being taken more seriously by the market. But a true no landing would involve inflation picking up and the labour markets tightening - the opposite of what has occurred over the course of the year. It may take over a month of data to shift attention back toward the evident slowdown in inflation and softening in the labour market," economists at Citi commented.

Providing direction in New York, third quarter results spurred Philip Morris, up 7.9% and General Motors, up 9.3% while Verizon dropped 4.2%.

Philip Morris, the Stamford, Connecticut-based tobacco company, reported operating income of USD3.65 billion, up from USD3.37 billion a year prior.

Looking ahead, the Marlboro owner raised its annual guidance for diluted EPS to between USD6.20 and USD6.26, and adjusted diluted EPS to USD6.45 to USD6.51.

"In the third quarter, we delivered exceptionally strong performance, with record quarterly net revenues and earnings per share," said Chief Executive Officer Jacek Olczak.

In London, BAT perked up 1.4% in a read across from the results, although Imperial Brands remained in the red, down 0.6%.

The pound was quoted at USD1.2973 late Tuesday afternoon in London, down compared to USD1.2984 at the equities close on Monday. The euro stood at USD1.0808, lower against USD1.0825. Against the yen, the dollar was trading at JPY151.06, up compared to JPY150.34.

UK public sector borrowing spiked in September, ahead of the budget next week, amid lofty interest payable on government debt.

According to the Office for National Statistics, public sector net borrowing amounted to GBP16.61 billion in September, stretching from GBP13.02 billion in August and GBP14.48 billion a year prior.

It was the "third highest September borrowing since monthly records began in January 1993", the ONS said.

"The interest payable on central government debt was GBP5.6 billion in September 2024, GBP4.6 billion more than in September 2023; this was owing to the interest payable in September 2023 being exceptionally low at GBP900 million because of movements in the retail price index around that time, rather than September 2024's interest being unusually high."

In better news for the government, the International Monetary Fund said the UK economy is set to grow faster than previously thought in 2024 as drops in inflation and interest rates help drive spending.

The organisation meanwhile said UK gross domestic product is due to grow by 1.1% in 2024.

It represents a significant upgrade after predicting 0.7% growth in July.

The UK economy is then expected to grow by 1.5% in 2025, with the IMF maintaining its prediction from earlier in the year.

Chancellor Rachel Reeves said: "It's welcome that the IMF have upgraded our growth forecast for this year, but I know there is more work to do.

"That is why the budget next week will be about fixing the foundations to deliver change so we can protect working people, fix the NHS and rebuild Britain."

The IMF report also found that UK inflation for 2024 is set to be slightly higher than expected at 2.6%, having previously pointed towards a 2.5% reading.

It likewise slightly increased its inflation projection for 2025 to 2.1% from 2% in its previous outlook.

Fresnillo rose 2.9%. The gold miner was the best FTSE 100 performer benefiting from another bump in the gold price. Endeavour Mining was also in favour, up 0.8%.

Gold continued to climb with the yellow metal quoted at USD2,739.35 an ounce, up against USD2,717.31.

HSBC climbed 0.9% after announcing an organisational revamp and the appointment of a new Chief Finance Officer.

HSBC promoted Chief Risk & Compliance Officer Pam Kaur to CFO from January 1.

In addition, the company said from the start of 2025, it will simplify its organisational structure into four businesses: Hong Kong, UK, Corporate & Institutional Banking, and International Wealth & Premier Banking.

Hunting plunged 17%. It cut its annual profit guidance, as a recent decline in oil and US natural gas pricing has hit sector sentiment.

The manufacturer of equipment for the energy industry now expects 2024 earnings before interest, tax, depreciation, and amortisation between USD123 million and USD126 million, its outlook cut from the USD134 million and USD138 million range.

Brent oil was quoted at USD75.86 a barrel on Tuesday, up from USD73.85 late Monday.

Wednesday's economic calendar sees an interest rate decision in Canada, eurozone consumer confidence figures and the US Beige Book.

In the local corporate calendar, trading statements are due from lender Lloyds Banking Group, housebuilder Barratt Redrow, consumer goods manufacturer Reckitt Benckiser and advertiser WPP.

[master rsi] 22/10/2024 20:46

DOW

Just finished at the end with 6 points lower

[master rsi] 22/10/2024 15:30

How the UPS are performing during last month

[master rsi] 22/10/2024 15:15

How the UPS are performing today

[master rsi] 22/10/2024 14:52

FTSE 100 movers: Fresnillo shines again; utilities fall
(Sharecast News) - London's FTSE 100 was down 0.1% at 8,308.44 in afternoon trade on Tuesday.

Precious metals miner Fresnillo continued to shine as gold prices remained at record highs.

David Morrison, senior market analyst at Trade Nation, said: "Having broken above $2,700 for the first time ever in the early hours of Friday morning, gold continued its ascent yesterday, posting an intra-day record of $2,740. But it fell sharply soon after the US open to end the session slightly in the red. Despite this, it has made steady progress so far this morning and is back within a couple of dollars of yesterday's high.

"Gold is certainly showing some resilience, and the daily MACD remains encouraging, although both the weekly and monthly look very overbought. That would suggest, but not guarantee, that gold is getting ready for a pullback. Should that happen, then the depth and speed, along with where it finds support, should provide a bunch of clues over what happens next. For some, a sell-off now may signal that the bull run is over.

"For others, it may be an opportunity to load up. One thing is for sure, and that's that gold is finally being talked and written about as a worthwhile speculation, if not an outright investment. Meanwhile, silver is playing catch-up and back above $34 per ounce, its highest level in twelve years. If it can hold this level and consolidate, then further gains look likely."

On the downside, utilities were under the cosh, with British Gas owner Centrica, National Grid and SSE among the worst performers.

FTSE 100 - Risers

Fresnillo (FRES) 773.00p 3.41%

Entain (ENT) 719.60p 1.75%

Antofagasta (ANTO) 1,845.00p 1.65%

easyJet (EZJ) 515.40p 1.54%

Spirax Group (SPX) 6,765.00p 1.27%

Rio Tinto (RIO) 5,017.00p 1.09%

Mondi (MNDI) 1,280.50p 1.07%

Smurfit Westrock (DI) (SWR) 3,419.00p 1.06%

BAE Systems (BA.) 1,341.50p 1.05%

Melrose Industries (MRO) 444.10p 1.00%

FTSE 100 - Fallers

Centrica (CNA) 124.30p -2.24%

Admiral Group (ADM) 2,643.00p -2.04%

Diploma (DPLM) 4,290.00p -1.88%

National Grid (NG.) 1,002.00p -1.67%

BT Group (BT.A) 143.75p -1.51%

British Land Company (BLND) 422.20p -1.49%

Vodafone Group (VOD) 73.40p -1.48%

SSE (SSE) 1,872.50p -1.34%

Land Securities Group (LAND) 627.00p -1.34%

Phoenix Group Holdings (PHNX) 523.00p -1.32%

[master rsi] 22/10/2024 14:14

Petra Diamonds reports production increase amid revenue decline

(Alliance News) - Petra Diamonds Ltd on Tuesday reported an increase in quarterly diamond production following "solid performances" at two of its African mines.

For the first quarter of its new financial year, Africa-focused Petra Diamonds recorded a 7% increase in diamond production to 679,625 carats from 636,743 carats in the prior period.

Petra said this is owed in large part to higher grades at South Africa-based Cullinan mine and higher tonnes mined as well as grade improvements at Zimbabwe-based Williamson mine.

Revenue for London-listed mining business declined 76% to USD23 million from USD113 million the prior quarter as the business was impacted by the deferral of the majority of its South African goods from tender one.

This deferral also impacted net debt, which increased 42% to USD285 million from USD201 million in the preceding quarter.

Petra noted that both tender one and two closed this week, "yielding USD76 million from 600,000 carats sold" and with average prices representing a 13% increase over the previous tender.

[master rsi] 22/10/2024 13:51

DOW

On the way down with 160 points

[master rsi] 22/10/2024 13:29

IMF upgrades UK economic growth as elections drive global uncertainty
(Alliance News) - The UK economy is set to grow faster than previously thought in 2024 as drops in inflation and interest rates help drive spending, according to new projections by the International Monetary Fund (IMF).

It came as the financial agency held its forecasts for the global economy broadly steady and declared that the battle against inflation has "largely been won".

However, it said uncertainty around the economic outlook is "high", partly due to a raft of recent or forthcoming elections.

The IMF warned in its latest World Economic Outlook report that newly elected governments "could introduce significant shifts in trade and fiscal policy", which could alter future growth in some regions.

It also warned over recent volatility in the financial markets during the summer, with Japanese markets witnessing their worst day of trading for decades in August before staging a recovery.

Recent volatility "has heightened anxiety over the appropriate monetary policy stance – especially in countries where inflation is persistent and signs of slowdown are emerging," the report said.

The IMF maintained its projection that the world economy will grow by 3.2% in 2024 in its latest update.

It predicted that the economy will also grow by 3.2% next year, in a slight reduction from its previous estimate of 3.3%.

The organisation meanwhile said UK gross domestic product (GDP) is due to grow by 1.1% in 2024.

It represents a significant upgrade after predicting 0.7% growth in July.

The UK economy is then expected to grow by 1.5% in 2025, with the IMF maintaining its prediction from earlier in the year.

Chancellor Rachel Reeves said: "It's welcome that the IMF have upgraded our growth forecast for this year, but I know there is more work to do.

"That is why the budget next week will be about fixing the foundations to deliver change so we can protect working people, fix the NHS and rebuild Britain."

The IMF report also found that UK inflation for 2024 is set to be slightly higher than expected at 2.6%, having previously pointed towards a 2.5% reading.

It likewise slightly increased its inflation projection for 2025 to 2.1% from 2% in its previous outlook.

Unemployment is also set to be slightly worse than previously expected by the IMF, according to the latest report.

It said the UK unemployment rate is set to have been 4.3% for 2024 as a whole, compared with a previous 4.2% estimate.

[master rsi] 22/10/2024 13:19

Reeves considering tax hike on Amazon, online retailers - reports
Sharecast News) - Chancellor of the Exchequer Rachel Reeves is considering a tax increase on large e-commerce companies like Amazon in her upcoming budget, according to reports on Tuesday, in a bid to support the UK's ailing high street.

The plan, reported by Bloomberg, would involve reforms to the current business rates system, which has been widely criticised for favouring online retailers with warehouses in lower-cost areas.

A potential adjustment would align with Labour's pledge to level the playing field between traditional retail outlets and online businesses.

The proposed tax changes could help reduce the financial burden on physical stores, particularly in sectors such as hospitality and leisure, where firms were facing a looming increase in business rates when a Covid-era relief measure expires in April.

Despite calls from over 170 business leaders urging Reeves to extend the relief, she was reportedly focussed on alternative measures to ease the impact, rather than continuing the current discount.

Labour's broader strategy includes long-term reforms to business tax that could bring in up to £40bn for public services, while addressing the perceived imbalance between high street stores and e-commerce giants.

While an online sales tax had been discussed in the past, it was unlikely to be part of this package, Bloomberg said.

Instead, Reeves was reportedly considering adjustments to how business rates are calculated, potentially basing them on factors such as a company's revenue or the type of property occupied, which could offer relief to struggling firms.

Reeves is set to announce her maiden budget on 30 October.

[master rsi] 22/10/2024 12:33

Revel Collective posts widened annual loss amid restructuring plan
(Alliance News) - Revel Collective PLC on Tuesday said its annual loss widened during its 2024 financial year, due to the effects of its now-completed restructuring plan.

The Manchester, England-based operator of 65 pubs and bars under the Revolucion de Cuba, Revolution and Peach Pub brands recently changed its name from Revolution Bars Group.

Its pretax loss widened to GBP36.7 million for the financial year that ended June 29 from GBP22.2 million the year before.

Revenue fell 2.0% to GBP149.5 million from GBP152.6 million, whilst exceptional items costs increased by 54% to GBP31.1 million from GBP20.2 million.

Revel said current trading has been impacted by a "particularly wet summer" in the UK, continued cost-of living impacts on its younger customers, as well as the effects of its restructuring plan for Revolution Bars Ltd, which it launched in August amid "constraints of consumer demand, rising costs and a permanent shift in trends".

The restructuring plan removed loss-making sites, reduced rents to allow the market to return to more normal levels, and reduced the company's bank debt. It expects the execution of the plan to extend into financial 2025.

Revel Collective anticipates a return to normal refurbishment plans and estate expansion from financial 2026.

Chief Executive Officer Rob Pitcher said: "Despite the distractions to the bars side of the business, particularly Revolution Bars, I am very pleased to have seen strong trade elsewhere in the group.

"Peach Pubs continues to trade very strongly post-acquisition and enjoyed its best ever festive trading this year. The pubs have seen a strong start to financial 2025, and we see the pubs and Founders & Co as the key areas for future expansion in the group. I am confident, with the distraction of the restructuring plan behind us, we will drive growth across all brands.

"We look to the government as an engine for growth for the UK hospitality industry, with urgent reforms needed to business rates and the apprenticeship levy, as well as recognition of ongoing challenges through minimum wage legislation, which should be supported through reduced VAT for the industry which is undoubtedly over-taxed."