This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The below stocks have been identified as having potential to register bigger than normal share price moves (up or down) today based on the news cited
UK Index Housebuilders could be sensitive to the UK RICS House Price Balance coming in at a miserable -19 in December, worse than the -13 Reuters consensus and the weakest since 2012. Short-term expectations of -28 was the worst in 20 years, hampered by Brexit uncertainty.
UK Index Banks may be sensitive to reports that German regulators stepping up work on a potential merger of the ailing duo of Deutsche Bank and rival Commerzbank. Note also SocGen warning on Q4 sayng results to be hit by an €240m exceptional charge from disposals and challenging global capital markets; Q4 revenues expected -20% YoY, FY expected -10% YoY.
AB Foods outlook unchanged (adj. profits in line with last year); Group Q1 sales (16 wks to 5 Jan) +1% YoY (+2% constant FX). Primark +4% (consensus constant FX +4.2%, actual FX +4.5%), UK +1% in down market, Eurozone +5%, Xmas better than expected; margins up, profits well ahead; modest decline in like-for-like sales (consensus -1.8%); Sugar sales -12% at constant FX (-14% actual), Grocery +3% (+2%), Agric +5% (+5%), Ingredients +6% (+1%).
Whitbread Q3 group sales +2.4% YoY (UK like-for-like -0.6%, UK total +2.5%). Premier Inn like-for-like -0.2% (+3.5% total), RevPAR -1.3% (London strong, regions weaker). Occupancy -140bps to 80.9%. Food & Bev -1.5% like-for-like (+0.5% total). Backs FY targets. Macro uncertainty means underlying 2020 pre-tax profit likely in-line with this year. £500m buyback starts today.
Sage Group Q1 organic revenue +7.6% YoY (N America: +10.4%, UK/IRL: +5.9%, France: +5.8%). Recurring revenue +10.5%, with +27.7% subscription growth. Net debt -9.8% QoQ. FX tailwinds on weaker GBP. FY guidance unchanged.
SSP Group Q1 like-for-like revenue +7.6% YoY (sales +2.5%, net contract gains +3.8% ahead of expectations, Stockheim M&A +1.3%). Continental Europe sales hit by French protests. UK, North America and RoW sales in-line with last year. FY sales growth expectations (+2-3%) unchanged, but 2019 net contract gains expected ahead of prev. ~3% guidance.
(Sources: Company newswires, Bloomberg, CNBC, FT, Reuters, Wall Street Journal)
For more information on any of these individual news items, call into the trading floor
| Stock | Code | Close | High | Low |
| PEARSON | PSON | -7.4% | -4.5% | -9.6% |
| BOVIS HOMES | BVS | 2.7% | 5.2% | -1.4% |
| DIPLOMA | DPLM | -2.4% | -2.0% | -3.9% |
| TULLOW OIL | TLW | 0.6% | 1.5% | -1.9% |
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Prepared by Michael van Dulken, Head of Research