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
Marks & Spencer announces £600m rights issue to fund JV with Ocado, buying 50% of Ocado retail business for up to £750m, sees synergies of £70m+/year by 3rd year after completion. Cuts final dividend -40% to sustainable level (7.1p/share). Trading in-line.
Rio Tinto FY underlying earnings $8.8B (+2%) beats $8.5B estimates; final dividend flat at $1.80, special dividend $2.43 ($4B) ahead of expectations. Looking at M&A; iron-ore still focused on value over volume; Steel resilient, Bauxite uncertain; New gold deposit found in Australia.
Weir Group FY like-for-like revenues and orders +15%, operating profit +13%, pre-tax profit +22%, operating cash-flow +86%, net debt +33%, dividend +5%; Expects further growth in 2019.
After-hours Metro Bank reported an FCA/PRA investigation into recent Risk-Weighted Assets accounting error. Cuts medium-term guidance: Deposits +20%/year vs. +34% in 2018, cuts store growth plans significantly. FY18 revenues +38%, underlying pre-tax profit +140%, Net Interest Margin -12bps, customer NIM+fees -2bps. Confirmed plans to raise £350m via rights issue.
Taylor Wimpey FY revenue +2.9%, in-line, pre-tax profit +5.5%, tangible NAV/share +2.7%, net cash +25.8%. Forward UK order book +9.4% (+16.3% in units). Positive 2019 start. Net private sales rate 0.99 YTD (vs. 0.82 in 2018). To pay £600m (+20.1%) in dividends in 2019 o/w ordinary +56% (~£250m) & special +2.9% (~£350m). Sees stable 2019 sales and build cost growth.
ITV FY total revenues +3%, in-line, (ads +1%, non-ads +5%), adj. EBITDA -4%, dividend +3%, net debt -2%. Expects continued double-digit online revenue growth, but H1 impacted (first 4 months -3-4%) by tough comparable (2018 World Cup). Sensitive to UK ad headwinds. In talks with BBC about a strategic partnership.
(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 |
| ASSOCIATED BRITISH FOODS | ABF | -2.2% | 0.6% | -3.3% |
| PERSIMMON | PSN | -4.4% | -4.1% | -8.0% |
| HISCOX | HSX | 2.9% | 3.4% | -0.7% |
| PROVIDENT FINANCIAL | PFG | 19.3% | 21.1% | 9.5% |
| HAMMERSON | HMSO | 0.0% | 0.5% | -4.2% |
| CENTAMIN | CEY | -28.5% | -0.6% | -30.2% |
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.
Prepared by Michael van Dulken, Head of Research