With the earnings season winding down and the UK market going into its traditional summer lull, there aren’t many UK share prices to watch this Thursday. Bailed-out lender Royal Bank of Scotland (LON:RBS), however, has managed to make the list regardless, hit by analyst comments in the wake of its half-year results, while DIY retailer Kingfisher (LON:KGF) is in the doldrums as it updated the market on the impact of the IFRS 16 accounting standard.
Kingfisher and RBS fall on Thursday
RBS has been one of today’s most notable FTSE 100 fallers, with the shares going ex-dividend, and with the stock suffering on the back of analyst comments. Proactive Investors reported that UBS, which is bullish on the stock with a ‘buy’ rating, had trimmed its valuation on the shares, along with its earnings per share estimates for the company for 2020 to 2022 by 12-16 percent, on account of more bearish assumptions on interest margins and limited additional cost flexibility. The move came after the bailed-out lender recently posted its interim results, cautioning on its 2020 targets.
RBS’ share price has given up more than 10 percent in early afternoon trade, according to Google Finance data, underperforming the broader London market, with the FTSE 100 index standing about 1.4 percent lower. The benchmark has resumed its slide lower, pressured by US-China trade worries and recession fears.
“While there may be some bounce as dip buyers test the water, any recovery looks precarious as global risks and macro-economic data show no signs of improving,” Markets.com analyst Neil Wilson said, as quoted by Reuters.
DIY retailer Kingfisher is also underperforming the market with a near two-percent fall as it reported that while the IFRS 16 accounting standard had no impact on its business or cash flow, it would impact the way assets, liabilities and the income statement are presented. The company said that it will disclose further details alongside its half-year results statement on September 18 which will include financial statements prepared on an IFRS 16 ‘Leases’ basis, with fully restated half year and full year comparatives.
In smaller UK share prices to watch, Kaz Minerals (LON:KAZ) has slumped this Thursday as it reported that its half-year revenues had fallen to $1.05 billion in the first half of the year, as compared with $1.1 billion in the prior-year period. EBITDA for the period fell from $690 million to $620 million. The company further said that its short-term copper market outlook was more cautious, citing continuing trade pressures and China slowdown concerns. The group meanwhile maintained its full-year production guidance and said that its long-term outlook remained robust.
“The increase to capex spending means that net debt will likely peak higher than our present estimate suggest, something that will refocus investors on the balance sheet given current market fears over economic growth rates,” Peel Hunt commented on the results, as quoted by Proactive Investors. Kaz Minerals’ shares are changing hands more than 10 percent lower.
Elsewhere on the London market, Plus 500 (LON:PLUS) is rallying as it disclosed in a regulatory filing that its chief executive and other directors had bought shares in the company.
“That directors should buy stock has been a key piece of investor feedback and is therefore notably responsive, especially taken with the recent buyback and new distribution policy,” Liberum analysts wrote, as quoted by Reuters. Plus 500’s shares are up by more than 10 percent.
GVC Holdings (LON:GVC) is also outperforming the market as it posted better revenues for the first half of the year. Proactive Investors quoted Russ Mould at AJ Bell as commenting that the group appeared “to have come to trumps” with the results in the face of a tough regulatory backdrop, thanks to the strength of its online performance.
“The retail arm – read betting shops – is beginning to absorb the impact of the ban on fixed odds betting terminals and a more efficient operation is emerging as some outlets are closed,” the analyst elaborated, adding, however, that the risk for the company and the wider industry was “that they will have to work increasingly hard even to stand still as the rules governing them become increasingly strict”. GVC’s shares are up by about 2.5 percent.
If you want to check out how stocks on the other side of the pond are performing, here is our Day Trading Stock Picks – US and Canadian Lists. For information on the British pound, take a look at this article on The Brexit Impact on the GBP.
UK share price to watch tomorrow
While there is not much happening on the corporate front tomorrow either, Acorn Income (LON:AIF) will be one of the UK share prices to watch as it prepares to hold its annual general meeting. Tsc Group (LON:TSC) is also holding its AGM tomorrow.
For more practical information on trading, take a look at this guide on How to Spot Trend Trading Opportunities or check out this article on How to Use Relative Strength in Your Swing Trade Selection.