Reports » UK

UK stock market morning note (January 09, 2013)

The FTSE 100 is called to open higher this morning helped by results from the US aluminium producer, Alcoa which forecast 7% growth in global aluminium demand in 2013. Overnight we had domestic news showing that job placements and average earnings rose in December 2012, but private sector employees are around GBP89 worse off a month than they were 4 years ago because earnings have not kept pace with inflation. The latter was also highlighted in the latest BRC monthly shop price inflation data, with the cost of goods for sale on the UK high street up 1.5% in December, which was unchanged on the previous month. The main economic event today sees the release of domestic trade data. Commodity prices are mixed and on the foreign exchanges, the major currencies are trading in narrow ranges.

Company Announcements

Sainsbury Trading Statement for the 14 weeks to 5 January 2013 reports that Q3 total sales rose 3.9% with lfl sales up 1.5%. Sales of own brand products grew at three times the rate of brands with the online business increasing at over 15%. It added that it expects the challenging economic backdrop to persist but is well-positioned to perform well over the next quarter.

Greggs Christmas and New Year Trading Update reports that in the 5 weeks ending 5 January 2013, total sales rose 4.3% with lfl sales down 2.9% against strong 2011 comparatives. For the financial year, total sales are ahead 4.8% with lfl sales down 2.7% and anticipates full year results to be broadly in line with expectations. It added that it expects that the tough trading environment will continue during 2013 but it is well-placed to deliver further sales growth.

Ted Baker Trading Update reports that retail sales rose 20.9% in the 8 weeks to 5 January 2013 with gross margins in line with expectations. It anticipates PBT for the year ending 26 January 2013 to be in line with expectations and is planning further store openings globally in Shanghai, China in the first half of 2013. It also separately announced that David Bernstein will take over with immediate effect as Non-Executive Chairman, replacing Robert Breare.