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Morning Report - 18 January 2023

Yesterday’s UK 100 Leaders Price (p) % Chg
SSE PLC 1,719.5 2.2%
Diageo PLC 3,758.5 1.5%
Weir Group PLC 1,834.0 1.3%
Associated British Foods PLC 1,852.0 1.3%
BT Group PLC 132.0 1.3%
Yesterday’s UK 100 Laggards Price (p) % Chg
Ocado Group PLC 732.0 -9.4%
Berkeley Group Holdings (The) PLC 4,339.0 -2.7%
Fresnillo PLC 935.1 -2.0%
JD Sports Fashion PLC 158.7 -1.9%
Endeavour Mining PLC 1,932.0 -1.8%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,833 -0.3% 3.0%
DOW JONES INDUS. AVG 33,916 -1.1% -5.6%
DAX INDEX 15,157 0.2% -5.1%
NIKKEI 225 26,139 1.2% -7.8%
S&P/ASX 200 INDEX 7,386 0.0% -0.3%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 80.50 0.80%
Brent Crude (ICE) USD/bbl. 86.02 1.85%
Gold Spot USD/t oz. 1,910 -0.3%
Copper (Comex) USd/lb. 419 -0.7%
The UK 100 called to open -14 points at 7837.

1 Day; 3 Years

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Markets Overview:

The UK 100 called to open -14 points at 7837.  The UK 100 looks set to open modestly lower this morning, after UK consumer Price Inflation dipped from 10.7% to 10.5% last month, in line with expectations. But core inflation – stripping out food and energy – was higher than expected at 6.3% rather than 6.2%.   It was a mixed session in the US yesterday, the Dow Jones fell by more than 400 points, lead lower by weaker than expected results from Goldman Sachs, to end the session at 33,910 while the S&P fell by just 8 points to trade at 3,991. The Nasdaq gained 15 points to close at 11,094

 

Company News & Broker Comments:

Company News:

Antofagasta 2022 copper production falls 10% to 646,200 tonnes, in line with guidance. They expect their 2023 copper production to be in the range of 670,000 – 710,000 tonnes.

 

 

Burberry report Q3 retail revenue of £756m, up 5% YoY. They have backed near and medium-term targets of high-single digit revenue growth. They expect currency tailwind of £160m on revenue in FY23.

 

 

Currys are confident of achieving an adjusted pretax profit of £100-125m in their FY.

 

 

Pearson report that their group underlying sales for the year increased 5% and they reported an adjusted operating profit of £455m up 11% YoY ahead of expectations. They are on track to deliver £120m of cost efficiencies in 2023 as £20m of these cost efficiencies are to be used to offset inflationary pressures.

 

 

Qinetiq says they are on track to deliver in line with expectations for FY23.

 

 

Smiths Group expects organic revenue growth of at least 7% in FY23. They expect low double-digit percentage organic revenue growth in H1 as they state volume growth and price increases are offsetting cost inflation.

 

 

S4 Capital says trading in Q4 was in line with expectations. They expect a £120m operational EBITDA for FY22.

 

 

Vistry says 2022 profit was in line with expectations, ahead of the start of the year. They expect an adjusted pretax profit to increase by 21% to £418m from £346m YoY.

 

 

WH Smith delivers strong performance in 20 weeks to Jan 14th, revenue up 41% YoY. Their UK high street division delivered good performance in line with expectations. They state that their cost savings target for the FY is on track as they are confident of a year of significant progress in 2023.

 

 

Broker Comments:

 

Bank of America Downgrades Segro to Neutral from Buy (10 Buys / 4 Holds / 1 Sell)

 

 

Bank of America Upgrades British Land to Buy from Underperform (5 Buys / 7 Holds / 0 Sells)

 

 

Bank of America Upgrades Land Securities to Buy from Neutral (5 Buys / 10 Holds / 0 Sells)

 

 

Deutsche Bank Upgrades Greggs to Buy from Hold (7 Buys / 3 Holds / 0 Sells)

 

 

Oddo BHF Downgrades Whitbread to Neutral from Outperform (12 Buys / 3 Holds / 0 Sells)

Reporting Today:

Burberry Group

 

Ibstock

Reporting Thursday:

UK

 

Crest Nicholson

Diploma

Dunelm

Premier Foods

Network International Holdings

 

US

 

Procter & Gamble

Netflix

 

In Focus Today:

BoJ Interest Rate Decision

 

BoJ Monetary Policy Statement

 

BoJ Press Conference

 

UK Consumer Price Index

 

UK Retail Price Index

 

EU Core Harmonized Index of Consumer Prices

 

US Producer Price Index ex Food & Energy

 

US Retail Sales

 

US Retail Sales Control Group

 

Fed’s Beige Book

 

Japanese Merchandise Trade Balance Total

 

 

Tomorrow’s Ex-Dividends:

UK 100 companies going  ex-dividend on 19th January 2023:

 

Compass Group

UK 250 companies going  ex-dividend on 19th January 2023:

 

 

Diploma

 

Future

 

AJ Bell

 

Victrex

 

Games Workshop Group

 

Balanced Commercial Property Trust

 

Supermarket Income REIT

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