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Reports UK

UK stock market morning note (July 02, 2014)

July 2, 2014, Wednesday, 09:15 GMT | 04:15 EST | 12:45 IST | 15:15 SGT
Contributed by SVS Securities

The FTSE 100 is called to open slightly lower this morning on profit-taking after the gains in the previous session. The economic diary today focuses on the release of domestic construction PMI data followed at lunchtime in the US with the ADP employment figures and later in the afternoon a speech from the US Federal Reserve Chair, Janet Yellen. Commodity prices are flat to lower and on the foreign exchanges, the dollar is slightly higher against the pound, euro and yen but all are within narrow trading ranges ahead of these data releases and Yellen's speech.


Company Announcements

Persimmon

Trading Update reports that H1 2014 has been strong with total revenues up 33% to GBP1.2bn and new home legal completions ahead 28% at 6,408. Visitor numbers grew 5%, cancellation rates remained stable at 16% and average selling prices increased by 4% to around GBP186,000. Its total forward sales revenue at the end of June stood at around GBP1.18bn, 28% up on last year with about 4,100 new homes sold forward which is 29% ahead yoy at an average selling price of around GBP204,600, a 3% rise. The second payment of its capital return will be made on 4 July 2014, amounting to 70p a share. It added that confidence in its regional UK markets remains positive as it enters the traditionally slower summer weeks.

Tullow Oil

Trading Statement and Operational Update reports that H1 results will see revenue and gross profit in line with expectations at USD1.3bn and USD650m respectively. Following mixed frontier exploration results and licence relinquishments, it expects a net exploration write off of USD415m. In addition, Tullow will also record a loss on disposal of USD115m in H1 mainly in relation to its Uganda farm-down. Group working interest in the period averaged 78,100 boepd but production guidance for the full year remains unchanged at 79,000 to 85,000 boepd. It added that with potential basin-opening wells coming up in H2 and strong revenue and cashflow, it was in a strong position for the rest of 2014 and into 2015.   

Carillion

Trading Statement notes that H1 performance has been in line with expectations and full year targets are unchanged. H1 revenue is expected to be slightly lower, but is on track to resume revenue growth in the full year. H1 earnings in line with a slightly improved operating margin and new order intake remains strong with H1 orders and probable orders of GBP2.7bn, which is expected to raise the total order book value plus probable orders to over GBP18.5bn at the half year.