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Morning Report - 23 November 2021

Yesterday’s UK 100 Leaders	Price (p)	% Chg
ANTOFAGASTA PLC	1,479.0	5.0%
VODAFONE GROUP PLC	117.2	3.2%
BHP GROUP PLC	1,942.8	3.1%
ROYAL MAIL PLC	512.8	2.9%
BT GROUP PLC	164.7	2.5%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
POLYMETAL INTERNATIONAL PLC	1408.5	-4.4%
DARKTRACE PLC	509.0	-3.5%
ITV PLC	118.8	-1.6%
INFORMA PLC	506.0	-1.6%
AVEVA GROUP PLC	3388.0	-1.5%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,255	0.4%	14.6%
DOW JONES INDUS. AVG	35,619	0.1%	20.4%
DAX INDEX	16,116	-0.3%	22.8%
NIKKEI 225	29,774	0.1%	16.6%
S&P/ASX 200 INDEX	7,411	0.8%	12.9%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	75.80	-1.24%
Brent Crude (ICE)	USD/bbl.	78.97	-0.92%
Gold Spot	USD/t oz.	1,809	0.2%
Copper (Comex)	USd/lb.	438	-0.3%

The UK 100 is called to open -38 points today at 7214.

4 hours; 6 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open -38 points today at 7214. A weaker start is expected today for the UK’s bluechip index, this comes on the back of a tough session on Wall Street yesterday, led lower by the tech heavy Nasdaq plunged over 202 points or 1.26%, with eight of the ten largest tech giants losing ground 2-3%. The S&P fell 0.3% and the blue-chip Dow Jones was the stand out performer with a 17-point gain to just over 35,619, after President Biden renominated Jerome Powell for another term as chairman of the Federal Reserve. Stocks in Asia were mixed on Tuesday, China’s Shanghai Composite gained 0.23% while Hong Kong’s Hang Seng index slumped 1.18% and South Korea’s Kospi dipped 0.54%. Japanese markets were closed for a holiday.

Company News & Broker Comments:

Company News:

AO World has cut its outlook for fiscal 2022 profit and warned of shortages in certain product categories ahead of the crucial holiday shopping season. They expect annual adjusted core profit to be £10-20m, compared to its previous forecast of between £35-50m in October. Fiscal 2021, profits had nearly tripled to £64m.

Compass Group have resumed dividend payouts (14p per share), forecast fiscal 2022 underlying profit margin to be more than 6% and reported higher annual profit as it benefits from economic reopenings and record new business wins. Underlying operating profit for the year rose 55.4% to £811m.

Pets at Home report that their pretax profit rose 81% YoY to £70.6m (2020: 38.9m) and they have upped their interim dividend by 72% YoY to 4.3p. They state that FY underlying pretax profit is to top analyst expectations.

Severn Trent reports that their HY turnover +8% to £958.2m (2020: £887.6m) and their HY pretax profit rose 14% to £255.6m (2020: £224.6m) as they announced an interim dividend of 40.86p.

Broker Comments

Berenberg Downgrades Hochschild Mining to Hold from Buy (5 Buys / 2 Holds / 0 Sells)

Berenberg Upgrades Barratt Developments to Buy from Hold (12 Buys / 4 Holds / 0 Sells)

Berenberg Upgrades Crest Nicholson to Buy from Hold (4 Buys / 4 Holds / 1 Sell)

Jefferies Downgrades Big Yellow Group to Hold from Buy (2 Buys / 9 Holds / 0 Sells)

Peel Hunt Downgrades Hochschild Mining to Hold from Buy (5 Buys / 2 Holds / 0 Sells)

Societe Generale Downgrades Hammerson to Sell from Hold (1 Buy / 9 Holds / 4 Sells)

Reporting Today:

AO World

CRH

Coats Group

Compass Group

Cranswick

Pets at Home

Severn Trent

Telecom Plus

Reporting Tomorrow:

Brewin Dolphin Holdings

Britvic

HICL Infastructure

Johnson Matthey

LXI REIT

Rotork

United Utilities

Virgin Money

In Focus Today:

German Markit Manufacturing PMI

German Markit PMI Composite

EU Markit PMI Composite

UK Markit Services PM

German Gross Domestic Product

BoE’s Haskel speech

This Week’s Ex-Dividends:

FTSE 100:

Vodafone Group

Imperial Brands

British Land Company

Land Securities Group

FTSE 250:

Diversified Energy Company

3i Infrastructure

CMC Markets

Tate & Lyle

HICL Infrastructure

Hipgnosis Songs Fund

Murray Income Trust

Electrocomponents

Kainos Group

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