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23% of UK 100 to report next week

While it was records, records, records once again for global indices, while foreign exchange markets endured a rollercoaster of emotion during the Davos World Economic Forum, UK equities slipped under the radar as earnings season continued at breakneck speed.

EasyJet (EZJ) literally flew Northwards of major resistance this week, climbing 5.1% on Q1 results. Incredibly, move exactly mirrors the reaction to full year results back in November, when shares also climbed 5.1%.

Fresnillo (FRES) also enjoyed a golden week, and not just because the precious metal climbed to 18-month highs. The precious metals miner climbed 3.7% after releasing its Q4 production figures, bucking two consecutive negative reporting sessions.

But fear not, you haven’t missed the chance to trade some of the biggest names on the UK 100 . In fact, this week was just the warm up.


If you’d already seen our Week in Advance publication, you’d know that from Wednesday onward, no less than eight UK 100 components will release trading updates, including some of the most popular names going. Put in terms of weighting, these companies amount to almost a quarter of the total index.

This line-up includes names such as Glencore (GLEN), the commodities giant (2.5% of the UK 100 ) and a favourite of retail investors. The company will reveal its full year production figures on Thursday, and will hope to emulate its 2.4% rally in October after its Q3 production update.

Royal Dutch Shell (RDS), the largest company on the UK 100 (9.2%), will look to continue its run of a full calendar year of trading updates receiving a positive share price reaction. Having not dipped on a results day since July 2016, on average rallying 1.9% since then, will next week finally see the run end? Or will it add to that impressive stat sheet to notch its sixth consecutive positive results close?

Unilever (ULVR), the consumer behemoth that survived a £115bn takeover from Kraft Heinz in 2017 – and over 5% of the UK Index , fell almost 5% a year ago after its Q4/FY results. And after falling 5.5% following its Q3 update, can the company bounce back on Thursday?

Vodafone (VOD), a further 2.7% of the UK 100 , rallied an impressive 5% after HY results in November, and is another company looking to maintain a full calendar year of positive post-trading update sessions. Can it make it five quarters in a row?

AstraZeneca (AZN), one of the UK’s largest pharmaceutical companies (and 2.75% of the UK 100 ), plunged over 15% in July when its half year results, alongside disappointing drugs trial results, disappointed investors (to say the least). Falling a further 0.6% in November after Q3 results, will it be able to put these performances behind it on Friday?

A year ago this week, BT (BT.A) slumped an astounding 20% following a surprise profits warning. Since then, the company has been attempting to address legacy issues – including its swollen pension plan – in order to revive investor confidence. Can it mark the one year anniversary with a more positive performance?


With 23% of the UK 100 reporting over the course of just three days, you need to be well-informed, whether you’re trading equities, indices or foreign exchange markets.

Thankfully, we offer a research service that will do just that. Clients already with us know exactly what companies are reporting thanks to our Week in Advance publication, while they will be looking forward to receiving a breakdown of the updates from the companies listed above before the market opens in our Breakfast Buffet.

To receive these publications, and more, sign up here to get access to our full awardwinning research offering. You won’t regret it.


Abdel Hamdaoui, Trader, 26 January 2018


 

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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

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