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UK stock market morning note (January 21, 2013)

The FTSE 100 is called to open higher this morning with Europe in focus with today's Eurogroup meetings taking place and the US markets shut for a Bank Holiday. Overnight we had domestic economic news showing that UK householders financial outlook improved slightly this month to 37.7 (36.8) according to Markit, but still well below the key 50 level mark. Separately, Rightmove reported that UK house prices rose 0.2% in the first weeks of January and were ahead 2.4% on a year ago. Commodity prices are mixed and on the foreign exchanges, both the pound and euro are slightly higher against the dollar, although within narrow trading ranges.

Company Announcements

Pearson Trading Statement reports market conditions remained weak as expected, in the key Q4 selling season for higher education, consumer publishing and corporate advertising. But for 2012 as a whole it expects to report good revenue growth at constant exchange rates, operating profit of GBP935m (broadly level at constant exchange rates), adjusted earnings of 84p per share and a cash conversion ratio of close to 90%.

Afren Trading Statement and Operations Update notes record 2012 financial results expected with sales revenue of USD1.5bn and full year capex of USD520m. Net production is in line with guidance at 42,830 boepd with 2013 net production estimated to average between 40,000 boepd and 47,000 boepd. It added that in 2013, it expects to further grow its reserve base and is financially well positioned with robust cashflows, a strong Balance Sheet and the necessary financial capacity and flexibility.

Crest Nicholson Intention to list on the LSE. The house builder has announced its intention to return to the market via an IPO having traded on the LSE main market from 1968 until 2007. It added that with the housing market entering a period of gradual recovery and with its emphasis on the South of England together with the continued support for the new homes market from the Government, that it was well positioned to generate value for shareholders.