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
Lloyds £1.75bn buyback (+75%; consensus £1.5-2bn) but extra £200m provision for PPI; 2018 underlying profit +6% to £8.1B, pre-tax +13% to £5.96B (consensus £5.7B), net profit £4.4bn +24% vs consensus £4.1B; Net interest margin 2.93% (+7bp YoY [Retail 2.68%, +8bp, Commercial 3.27%, -1bp); flat vs Q3;); Cost ratio -250bp to 49.3%; Final div 2.14p, +4.4%; Sees NIM ~2.9%, op costs <£8bn, a year earlier than expected, cost/income ratio to fall to low 40s%
UK regulator CMA says Sainsbury’s merger with ASDA could increase petrol prices, reduce quality and lessen competition. Concerns might be difficult to address. Looking at potential options, including blocking deal or requiring asset sales.
Glencore FY net income -41% on $1.4bn non-cash impairments at Mutanda & Mopani, adj. EBITDA +8%, op. cash flow +11%. $2bn buyback to run until end-2019. $0.20/share dividend unchanged, paid in two installments. Investing in low-carbon economy, coal production to be limited to current levels. Expects higher 2019 production in all commodities.
Indivior launched authorised generic version of Suboxone sublingual film in US to compete with anticipated launch of competing generic products from Dr. Reddy’s and Alvogen.
INTU Properties FY like-for-like net rental income +0.6% (headline -2%), occupancy -3bps to 96.7%, underlying earnings -3.9%. ERPA NAV/share -22.3%. Property revaluation swung to £1.4bn deficit. Property market value -13%. Expects 2019 like-for-like net rental income 1-2% lower.
Hochschild Mining FY revenues -2.5%, pre-exceptional pre-tax profit -18.1%, net debt -24.7%, dividends +17.6%; costs and production beat guidance; 2019 gold production lower, costs higher.
(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 |
| HSBC | HSBA | -4.3% | -2.2% | -5.2% |
| BHP | BHP | 0.2% | 0.6% | -2.5% |
| INTERCONTINENTAL HOTELS | IHG | -0.8% | 2.0% | -1.4% |
| COBHAM | COB | 5.0% | 5.1% | 0.3% |
| GREGGS | GRG | 12.4% | 12.6% | 3.7% |
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Prepared by Michael van Dulken, Head of Research