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UK stock market morning note (September 13, 2012)

The FTSE 100 is called to open flat this morning as investors wait on the outcome of the US Federal Reserve meeting late this afternoon and evening UK time. Ahead of the announcement and subsequent press conference, and with no domestic economic data due for release, attention will be focused on the US from lunchtime when the latest weekly jobless claims and producer prices data are due out (see below). Commodity prices are flat to slightly higher and on the foreign exchanges, the major currencies are trading in a narrow range as markets wait on the Fed decision.

Today's Company announcements

Next Interim Results saw underlying PBT up over 10% at GBP251.3m on revenue ahead 4.8% at GBP1.64bn. Growth in online, the addition of profitable new space and cost controls more than offset the negative impact of a decline in retail lfl sales. The dividend is raised 12.7% to 31p and again expects to increase the full year amount broadly in line with growth in underlying earnings per share. It added that it remains cautious about the economic outlook with disappointing sales in an unusual August and early September, but is on track to meet market expectations, maintaining the full year financial guidance given in last month's Trading Statement.

Home Retail Second Quarter Trading Statement reports that comparable sales rose 1.4% at Argos  whilst Homebase was down 3.7%. It added that at this stage it expects to deliver full year benchmark profit in line with current market expectations but as always, the outcome will depend upon trading at Argos in its peak Christmas period.

Dunelm Final Results saw PBT rise over 15% to GBP96.2m on revenue ahead 12.1% at GBP603.7m with lfl sales growth of 3.1%. The dividend is raised 21.7% to 14p and there is a proposed capital return of GBP65.8m equating to 32.5p per share. It added that whilst it remains cautious about the UK consumer environment, it is confident in the future growth prospects of the business.