Reports » UK

UK stock market morning note (February 21, 2013)

The FTSE 100 is called to open lower this morning after the declines on Wall Street and in Asia overnight following the release of the FOMC Minutes which indicated that the Federal Reserve may slow or stop buying bonds earlier than anticipated. There is a raft of economic data due out today for investors to digest with the domestic agenda dominated by the latest public sector net borrowing figures and the CBI Industrial Order Expectations survey. These will be followed at lunchtime in the US with the weekly jobless claims, consumer prices, flash manufacturing PMI, existing home sales and the Philly Fed Manufacturing Index data. Commodity prices are mixed with gold trading below the $1,600 level and on the foreign exchanges, the pound is continuing its decline against both the dollar and the euro after the Bank of England MPC Minutes yesterday revealed that the Governor had been one of those pushing for more monetary stimulus.

Company Announcements

BAE Systems Final Results saw PBT decline to GBP1.37bn on lower revenue of GBP16.6bn. The dividend is raised to 19.5p and the order backlog has grown to GBP42.4bn. It added that subject to near-term uncertainties relating to the US Defence budget, modest growth is anticipated in underlying earnings per share for 2013 and assuming a satisfactory conclusion to the Salam pricing negotiations this year, there would be a further rise of around 3p in underlying earnings per share. 

Sports Direct IMS reports that for the 13 weeks to 27 January 2013, group sales rose 21.1% to GBP589.5m and gross profit increased 22.7% to GBP244.8m. Performance in Q3 was driven by the Sports Retail division, including online. It added that it was certain of reaching its full year 2013 targeted underlying EBITDA of GBP270m (before a charge for its bonus share schemes).  

Kingfisher Trading Statement reports that sales in the 14 weeks to 2 February 2013 rose 1.5% on the same quarter last year but were down on a comparable 13-week basis at GBP2.39bn. It added that it expects to report adjusted PBT for the year in line with analysts guidance.

Tullow Oil East Africa Exploration & Appraisal Update notes the successful completion of the flow tests at Twiga South-1, Kenya with a combined rate of 2,812 bopd from three reservoir zones. However, in Uganda the Ondyek-1 exploration well did not encounter hydrocarbons.