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Morning Report - 28 September 2023

Yesterday’s UK 100 Leaders Price (p) % Chg
IMI PLC 1,565.0 4.5%
BP PLC 536.8 1.1%
Shell PLC 2,620.0 0.8%
Spirax-Sarco Engineering PLC 9,310.0 0.7%
Hikma Pharmaceuticals PLC 2,091.0 0.5%
Yesterday’s UK 100 Laggards Price (p) % Chg
Ocado Group PLC 623.0 -8.6%
Centrica PLC 157.4 -5.3%
Land Securities Group PLC 581.2 -4.0%
RS Group PLC 720.4 -3.8%
Unite Group PLC 887.5 -3.5%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,578 -0.6% 9.1%
DOW JONES INDUS. AVG 33,561 -0.2% 15.2%
DAX INDEX 15,199 -0.4% 25.6%
NIKKEI 225 32,372 0.2% 23.7%
S&P/ASX 200 INDEX 7,030 -0.1% 8.8%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 93.17 3.08%
Brent Crude (ICE) USD/bbl. 96.23 2.42%
Gold Spot USD/t oz. 1,884 -0.9%
Copper (Comex) USd/lb. 364 -0.2%
The UK 100 called to open +2 points at 7,594.

4 hours; 11 Months

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Markets Overview:

The UK 100 called to open +2 points at 7,594.   The UK 100 looks set to open higher this morning, Shares in Asia this morning were mixed, after shares of embattled Chinese real estate firm Evergrande were suspended.  Hong Kong’s Hang Seng index slipped 0.57%, Mainland Chinese stocks were slightly up on Thursday, with the CSI 300 rising 0.21%.  Japan’s Nikkei 225 slipped 0.82%, while the Topix saw a smaller loss of 0.75% on Thursday morning.  Wall Street yesterday also had a mixed session The Dow Jones fell 68.61 points, or 0.20%, ending the session at 33,550.27. Earlier in the session, it was up as much as 112.77 points. The S&P edged up 0.02% to close at 4,274.51, while the Nasdaq added 0.22% to end the session at 13,092.85

 

 

Company News & Broker Comments:

Company News:

Babcock have stuck to their guidance for higher organic revenue and improving margins this year, helped by progress in its shipbuilding and nuclear infrastructure contracts.

 

Ceres Power reports that their H1 2023 pretax loss has widened to £26.4m from £24.5m YoY.

 

Deliveroo proposes a £250m tender offer of 115-135p per share of up to 217.4m shares.

 

Diageo says expectations for FY24 are unchanged from their Aug 1st release as they are well-positioned to deliver medium-term guidance for FY23 to FY25.

 

Mitchells & Butlers posted a rise in annual sales growth, as more customers stepped out to grab drinks and food at its pubs despite a high inflationary environment and a cost of living crisis.

 

Safestore Holdings CFO Andy Jones is to retire from his role and stay on until the succession is complete.

 

888 Holdings expects their Q3 revenue to be down by 10% to £400m, with Q4 revenue expected to be higher than Q3. Their FY23 adjusted EBITDA margin is expected to be around 18-19%.

 

Broker Comments:

Barclays Downgrades United Utilities to Equal Weight from Over Weight (2 Buys / 7 Holds / 0 Sells)

 

Barclays Upgrades Severn Trent to Overweight from Equal Weight (1 Buy / 5 Holds / 2 Sells)

Reporting Today:

UK

 

Ceres Power

 

 

 

US

 

Accenture

Reporting Tomorrow:

UK

 

Carnival

 

 

US

 

None

 

 

In Focus Today:

EU Economic Bulletin

EU Business Climate

EU Consumer Confidence

EU Economic Sentiment Indicator

German Consumer Price Index

German Harmonized Index of Consumer Prices

US Core Personal Consumption Expenditures

US Gross Domestic Product Annualized

US Initial Jobless Claims

US Personal Consumption Expenditures Prices

US Pending Home Sales

Tokyo Consumer Price Index

Japanese Unemployment Rate

Japanese Retail Trade

 

This Morning’s Ex-Dividends:

UK 100 companies going ex-dividend on 28th September 2023:

 

Barratt Developments

Phoenix Group Holdings

M&G

British American Tobacco

Smurfit Kappa Group

Rightmove

 

 

UK 250 companies going ex-dividend on 28th September 2023:

 

Foresight Group Holdings

TP ICAP Group

Petershill Partners

Hipgnosis Songs Fund

Kainos Group

Computacenter

Mercantile Investment Trust

HgCapital Trust

Games Workshop Group

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