UK share prices watch: TUI volatile on Wednesday
Tour operator TUI Group (LON:TUI) and B&Q owner Kingfisher (LON:KGF) are among the UK share prices to watch today, with investors digesting their respective results. Luxury goods retailer Burberry (LON:BRBY) and blue-chip lender Lloyds Banking Group (LON:LLOY) meanwhile are due to provide some excitement on the corporate front tomorrow.
TUI and Kingfisher in focus on Wednesday
TUI has been volatile in London trading as it reported that its half-year loss had widened, citing last year’s heatwave, overcapacities in Spain, Brexit uncertainty, as well as the impact of the Boeing 737 MAX grounding, which commenced in mid-March, and the later timing of Easter this year. The company reaffirmed its expectations for profits, noting that it expects a one-off impact on underlying EBITA of €200 million assuming 737 MAX flight resumption latest by mid-July. Proactive Investors quoted analysts at Barclays as commenting that the tour operator’s half-year results were ‘soft’ but better-than-expected.
“The outlook for FY19 is unchanged so our estimates are unchanged,” the broker pointed out, adding that it remained “cautious given the operating leverage and lack of clarity on short-term earnings but think today’s statement could be taken well”. TUI’s shares are little moved in early afternoon trade, changing hands about 0.2 percent up, having surged in early morning trade, and then sliding into negative territory in mid-morning.
Kingfisher meanwhile is in the doldrums, having posted a lacklustre rise in like-for-like sales for the first quarter as strong performance in the UK and Ireland was offset by downbeat results in France.
“Screwfix, Poland and Romania delivered good sales growth while our performance in France was mixed within the quarter,” the group’s outgoing chief executive Véronique Laury commented in the statement. “At this early stage of the year our expectations for the full year are unchanged, and we remain confident in our ability to deliver significant financial benefits over time.” Kingfisher’s share price is nearly three percent worse off.
Credit checking company Experian (LON:EXPN) is outperforming the market as it posted results from what its CEO referred to as ‘a very good year’. Experian’s shares are outperforming the market with a 0.7-percent gain, compared with a flat FTSE 100 index.
Compass Group (LON:CPG) is another prominent FTSE 100 riser today as it posted an 8.8-percent gain in revenue for the six months ended March 31, and hiked its payout to shareholders. Compass’ shares are changing hands nearly three percent higher in early afternoon trade.
British Land (LON:BLND) meanwhile is flat as it revealed that its full-year underlying earnings per share had fallen 6.7 percent, and cautioned that retail was “likely to remain challenging”.
“As a percentage of its portfolio, department stores have been cut to 1% from 5% in 2014, highlighting just how far the sector has fallen in just a few years,” Neil Wilson, chief market analyst for Markets.com, commented, as quoted by the BBC.
ITV (LON:ITV) is about one percent down following news that it will permanently cancel the Jeremy Kyle Show after a guest reportedly committed suicide, Proactive Investors reports.
Reuters meanwhile reports that SSE (LON:SSE) and National Grid (LON:NG) have fallen amid media reports on Labour Party leader Jeremy Corbyn’s plans to nationalise energy networks at below market value. National Grid’s shares are down by about 0.7 percent, while SSE is nearly two percent worse off.
UK share prices to watch on Thursday
Burberry will be one of the companies in focus tomorrow as it posts its preliminary results. The Times reports that the City is expecting the group’s annual sales to have remained unchanged at £2.72 billion, while underlying operating profits are expected to have dropped five percent to £442 million. Sharecast quoted The Share Centre as commenting that slowing global growth has had its impact on the group’s sales, more specifically sapping confidence among key Chinese consumers.
“Store closures will also hit sales making the numbers from online and app sales all the more important,” the broker pointed out.
National Grid is also reporting tomorrow, after responding to Ofgem’s sector specific consultation documents for UK transmission businesses, urging the watchdog to adopt the concept of incentivisation to deliver innovation and efficiency.
Bailed-out Lloyds is scheduled to hold its annual general meeting amid backlash over chief executive António Horta-Osório’s pension arrangements. The Guardian reports that the pressure has been building due to the Investment Association which has urged companies to close the gap between contributions made to directors’ pensions and those offered to staff.
UK share prices set to come under pressure tomorrow include GlaxoSmithKline (LON:GSK), HSBC (LON:HSBA), Intertek (LON:ITRK), Royal Dutch Shell (LON:RDSA, LON:RDSB) and Tesco (LON:TSCO), whose shares will all be trading without the attraction of their latest dividend in Thursday’s session.