Friday 1 February
QUOTE OF THE DAY
"I am extraordinarily patient, provided I get my own way in the end."
- Margaret Thatcher
THIS MORNING IN LONDON
FTSE 100
6,307.58
30.70 0.49%
FTSE 250
13,190.52
160.03 1.23%
FTSE 350
3,374.77
19.79 0.59%
FTSE All Share
3,306.62
19.24 0.59%
AIM 100
3,286.27
22.06 0.68%
AIM All Share
736.03
2.89 0.39%
13:30 pm
THOUGHT FOR THE DAY
Hello Share Shifters
The Footsie seems to have run out of steam. Well, what a surprise! You can’t keep on piling on value day after day and expect it to last for ever. It never does. Not nohow.
So let’s not get downhearted that the bandwagon has stopped rolling. It might get going again. Actually, it probably will, once the profit-taking has died down. The recent rise has been so strong, that the momentum will be resumed, surely.
CLICK HERE for the full article
NEW ON THE BLOG
AIM needs the ISA – NOW!
By Michael Crockett,
Editor of AimZine – the magazine section of the Investor’s Champion website.
In his Autumn Statement George Osborne said that the government would consult on allowing AIM shares to be held in Stocks and Shares ISAs and most press commentators are expecting that AIM shares will finally be allowed into ISAs, probably in April 2014
Perhaps the government does not think that including AIM shares in ISAs is going to be an important weapon in fighting this “economic equivalent of war”. Let us take a look at some figures and consider the arguments...
CLICK HERE for the full article
Reasons to be Cheerful in 2013
By Ishaq Siddiqi
Market strategist with ETX Capital – a London based spread betting provider for equities, indices, forex and more.
After the stunning (albeit distorted) Q3 GDP figures last year, the disappointing Q4 growth figures are a stark reminder of the poor condition of the UK’s economy and the challenge it has in finding a path of sustainable growth in the years ahead.
Despite these issues there are some reasons to be hopeful of a gradual improvement in 2013 and beyond for UK corporates...
CLICK HERE for the full article
THIS MORNING IN LONDON
Euro manufacturing data lifts sentiment
A better-than-expected reading of Eurozone manufacturing data helped cement gains for equity markets on Friday morning, as investors await the all-important jobs data due out in the US this afternoon.
Expectations are for a 165,000 rise in US non-farm payrolls in January when numbers are released at 13:30, following the 155,000 increase the month before. However, the unemployment rate is forecast to remain unchanged at 7.8%. Also on the agenda today Stateside is the ISM manufacturing index and the closely-watched University of Michigan confidence survey.
Back on this side of the Pond, Markit's final Eurozone manufacturing purchasing managers' index (PMI) hit an 11-month high of 47.9 in January, higher than last month's mark (46.1). Forecasts were the PMI to be unchanged from the preliminary reading (47.5). While a figure below 50 still indicates a contraction, "the Eurozone economic picture continues to brighten", according to Markit Chief Economist Chris Williamson.
However, the UK's own manufacturing-sector PMI failed to meet expectations, falling from 51.4 to 50.8 in January. The consensus estimate had been for a reading of 51.
Over in China, the manufacturing sector continues to expand: while the HSBC manufacturing PMI beat forecasts, rising from 51.5 to 52.3 in January, the official manufacturing PMI disappointed, falling from 50.6 to 50.4. Nevertheless, analyst James Hughes from Alpari said he was "cautiously optimistic" as both of the numbers are still above 50.
However, markets came off their intraday highs in mid-morning trade on the news that European banks are expected to pay back a smaller-than-expected amount to the European Central Bank (ECB) next week as part of the repayments for the Long-Term Refinancing Operations (LTRO) programme. Banks will repay €3.5bn to the ECB, below the €20bn forcast and well under the €137bn paid last week. "Traders are now tempering their earlier optimism about the overall state of the banking sector which may not be as healthy as thought last week," said market strategist Ishaq Siddiqi from ETX Capital.
FTSE 100: BT impresses with third-quarter statement
Telecoms giant BT was a high riser this morning after its third-quarter results, as cost control helped it to beat expectations on the bottom line. Pre-tax profit increased by 7.0% in the quarter to £675m, however, revenues fell 6.0% to £4.5bn.
Miners were also performing well this morning as continued growth in China's manufacturing lifted the demand outlook for commodities. Fresnillo and Vedanta Resources were among the best performers.
Heading the other way was sweeteners and food products group Tate & Lyle after saying that third-quarter profits, while in line with expectations, were lower than they were last year. The company also warned about the elevated levels of volatile corn prices and the impact of the hot summer last year. "We read the Q3 as cautious in tone and a downgrading influence on numbers," said analyst Martin Deboo from Investec.
Global banking group HSBC was lower after Citigroup cut its rating on the stock to 'neutral'. Meanwhile, Shell was suffering the effects of a downgrade by UBS.
FTSE 250: Lonmin extends gains
Platinum producer Lonmin was continuing to rise after yesterday posting quarterly production ahead of targets despite strikes that hit the South African mining sector last year.
De La Rue, the banknote printer, surged after saying that it had received "some" of the previously delayed orders that it had referred to in the last trading update. The company said that results this year would be flat on 2011/12.
Communications services provider KCOM rose after saying in a third-quarter statement that it has seen "positive momentum across all brands".
Pubs group Greene King was a high riser this morning after HSBC raised its recommendation for the shares to 'overweight' and lifted its target price from 620p to 750p.
CLICK HERE FOR THE DAY'S FASTEST MOVING STOCKS
WHAT THE BROKERS SAY
Seymour Pierce has retained its 'sell' recommendation for DIY retailer and B&Q owner Kingfisher following the new that the firm is putting its loss-making Irish business into administration.
Panmure Gordon has kept its 'sell' rating for travel and leisure firm TUI Travel ahead of its first-quarter results next week on concerns over current trading.
Nomura has reiterated its 'buy' rating and 280p target price for telecoms group BT Group, saying that the firm's third-quarter results have reversed recent negative revenue momentum.
UBS lowered its rating for oil major Royal Dutch Shell from 'buy' to 'neutral' on Friday, citing an absence of near-term momentum
Click here for the rest of the broker recommendations
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
Lupus Capital
Greene King plc
Tower Resources - Oil in Africa - TRP
FORTE ENERGY NL (FTE) - Formerly Murchison United.
Empyrean Energy (EME)
Click here to discuss shares with other ShareCrazy members
Regards,
ShareCrazy
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