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Morning Report - 4 August 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
AVAST PLC	687.0	43.8%
TAYLOR WIMPEY PLC	126.7	5.5%
OCADO GROUP PLC	912.2	4.9%
AVEVA GROUP PLC	2,340.0	3.6%
ROLLS-ROYCE HOLDINGS PLC	90.8	3.4%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
FRESNILLO PLC	676.6	-5.0%
CENTRICA PLC	85.5	-4.1%
CRODA INTERNATIONAL PLC	7174.0	-3.3%
AIRTEL AFRICA PLC	154.2	-3.2%
VODAFONE GROUP PLC	118.9	-1.5%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,446	0.5%	4.5%
DOW JONES INDUS. AVG	32,813	1.3%	-6.6%
DAX INDEX	13,588	1.0%	-12.7%
NIKKEI 225	27,742	0.5%	0.6%
S&P/ASX 200 INDEX	6,976	-0.3%	-7.0%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	91.00	0.38%
Brent Crude (ICE)	USD/bbl.	96.78	-3.74%
Gold Spot	USD/t oz.	1,764	-0.1%
Copper (Comex)	USd/lb.	347	0.2%

The UK 100 is called to open +5 points this morning at 7440.

1 hour; 20 Days

Click graph to enlarge

Markets Overview:

The UK 100 is called to open +5 points this morning at 7440. This comes after trading on Wall Street yesterday saw all three major averages end the day on higher. The Dow Jones advanced by more than 400 points, while the S&P hit its highest level since June. The tech-heavy Nasdaq jumped about 2.5%. Investors sentiment was stoked after a surprise rebound in July services PMI and comments from St. Louis Federal Reserve President James Bullard. Bullard said he does not think the U.S. is in a recession, citing job gains and low unemployment.

Company News & Broker Comments:

Company News:

Glencore will return $4.5bn to investors after they reported that their HY profit had more than doubled. Their EBITDA rose to $18.92bn in H1, compared with $8.7bn a year earlier.

Hikma Pharmaceuticals says their H1 revenue has been hit by weakness in Generics as they guide generics revenue in 2022 to be $650-675m, down from $710-750m previously. They reported a H1 pretax profit of $215m, down from $319m YoY.

Meggitt reported a 21% rise in H1 revenue, underpinned by plane makers ramping up production to serve a recovery in post-pandemic air travel. Their revenue came in at £821m (2021: £680m).

Mondi report HY underlying EBITDA from continuing operations of 942m euros.

Next have increased their FY sales and profit forecasts after demand for new clothes in the warm weather delivered a better-than-expected Q2 result. They now expect their full-price sales to rise by around 6.2% in 2022/23, compared with an earlier forecast of 5%. Their profit before tax rose by £10m to £860m.

Phoenix Group buys Sun Life UK for £248m, as they expect it to generate £470m in the long run.

Rolls-Royce state they are managing rising inflation and supply chain disruption as they see their squeezed operating profit margin improving in H2, keeping them on track to meet their targets. They reported an operating profit of £125m in H1, (2021: £307m) on underlying revenue of £5.31bn.

Broker Comments:

Goldman Sachs Downgrades HSBC to Neutral from Buy (8 Buys / 8 Holds / 0 Sells)

Goldman Sachs Upgrades Lloyds to Buy from Neutral (9 Buys / 4 Holds / 1 Sell)

Reporting Today:

ConvaTec Group

Glencore

Hikma Pharmaceuticals

Meggitt

Mondi

Morgan Sindall

Rolls Royce

Serco Group

Reporting Friday:

Diageo

Frasers Group

Hargreaves Lansdown

London Stock Exchange Group

Pets at Home Group

WPP

In Focus Today:

BoE Interest Rate Decision

Bank of England Monetary Policy Report

Bank of England Minutes

German Factory Orders s.a.

US Initial Jobless Claims

Today’s Ex-Dividends:

FTSE 100:

BT Group

Lloyds Banking Group

Schroders

Reckitt Benckiser Group

Unilever

RELX

Rentokil Initial

FTSE 250:

Currys

Vesuvius

Tyman

GCP Infrastructure Investments

City of London Investment Trust

Games Workshop Group

Aberforth Smaller Companies Trust

Lancashire Holdings

Inchcape

Schroder Oriental Income Fund

Mediclinic International

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