Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/money/article/a631849
Wall Street ahead as US goes to the polls
FTSE 100 rises on strong company results and US markets push higher as elections get under way.
Markets
16.50: Britain’s markets strengthened throughout the day as investors focused on better-than-expected results from retailers Associated British Foods (ABF.L) and Marks & Spencer (MKS.L).
The benchmark FTSE 100 added 0.65%, or 38 points, to 5,878 and the Mid-250 index took on 0.4%, or 45 points, to 12,076.
In the US presidential and congressional elections are under way, with polls indicating the Democrats will retain control of the Senate and Republicans will continue hold a majority in the House of Representatives. Surveys are also indicating Barack Obama has a slight lead over his Republican opponent, Mitt Romney.
On Wall Street markets got off to a strong start as the Dow Jones Industrial Average added 0.71% to 13,205, the Standard & Poor's 500 index took on 0.5% to 1,424, and the Nasdaq Composite index gained 0.16% to 3,004.
FTSE 100 rises; Marks & Spencer struggles to shine
09.21: High-street retailer Marks & Spencer (MKS.L) added 7.5p, or 1.9%, to 396p as it reported falling profits in the first half for the second year running, but nonetheless beat estimates.
Despite an increase in its international sales, up 3.6%, pressures in the UK market and a poor showing from its clothing department held profits back. However, earnings beat estimates and the full-year gross margin is expected to be at the top end of forecasts.
The figures come as British retail sales slowed sharply in October, down 0.1% on a like-for-like basis compared with a year ago.
Analysts at Seymour Pierce upgraded their price target on the stock from 325p to 365p but retained a ‘hold’ rating.
Freddie George, analyst at Seymour Pierce, said: ‘The stock has outperformed the FTSE All Share by almost 20% and considering the 10% downgrade to consensus earnings during the year has been re-rated against the market by over 30%. It is thus likely to see some profit taking and broadly in line with the sector.’
UK markets also inched ahead: the FTSE 100 added 0.2%, or 13 points, to 5,852 and the FTSE Mid 250 took on 0.15%, or 18 points, to 12,049.
All eyes will be on the US later today as the country wakes up to presidential and congressional elections.
Engineer Babcock (BAB.L) took on 34p, or 3.4%, to 955p as its first-half profit before tax rose 13% and it reported a strong bid pipeline ahead.
Associated British Foods (ABF.L) shed 7p, or 0.5%, to £13.59 as it posted a 17% rise in full-year profit after a strong performance from its AB Sugar operations and growth at its Primark stores.
The world’s largest security company, G4S (GFS.L), added 7.6p, or 2.9%, to 268p as revenues rose 6.3% in the first nine months of the year.
Despite the failure to provide enough security guards for the Olympics, which cost the company £50 million, revenues improved from the 5% recorded in the first half of the year, with organic growth in emerging markets up 9%.
Packaging company DS Smith (SMDS.L) slipped 0.7p, or 0.3%, to 214p as the group announced trading in line with expectations. Full-year margins for the business are expected to be between 7% and 9%. The stock is the biggest holding in Edward Legget’s Standard Life Investments UK Equity Unconstrained fund, which features in Citywire Top Stocks.
Gas producer BG Group (BG.L) took on 1.9p, or 0.2%, to £10.91 as it closed the sale of its 60% stake in Comgas for $1.7 billon (£1 billion). Debt on the beleaguered gas company’s balance sheet has been reduced by $1 billion (£625 million) following the sale.
Citywire Top Stock Imagination Technologies (IMG.L) took on 6.8p, or 1.5%, to 471p as it acquired the operating business of MIPS Technologies for $60 million (£38 million).
MIPS produces CPUs (central processing units), and the acquisitons will be financed from existing cash at Imagination Technologies. The stock is the biggest holding in Nigel Thomas’s AXA Framlington UK Select Opportunities fund, making up 4% of the portfolio.
Sponsored By:
More about this:
Look up the funds
Look up the shares
- Marks and Spencer Group PLC (MKS.L)
- Babcock International Group PLC (BAB.L)
- BG Group PLC (BG.L)
- Associated British Foods PLC (ABF.L)
- DS Smith PLC (SMDS.L)
- G4S PLC (GFS.L)
- Imagination Technologies Group PLC (IMG.L)
Look up the fund managers
More from us
Archive
Today's articles
A new look at fund charges and why they matter by Gavin Lumsden
Week Ahead: the conundrum behind the rally by Chris Marshall
Friday Five: times when you need financial advice by Michelle McGagh
Gold heads for 7th down day while FTSE stalls by Chris Marshall
Saturday Papers: Backlash to hit scandal-tainted City by Himanshu Singh
Tools from Citywire Money
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.
Read more...
A new look at fund charges and why they matter
by Gavin Lumsden on May 17, 2013 at 13:49
2 comments so far. Why not have your say?
J M Turner
Nov 06, 2012 at 09:55
Does anybody know of an "app" or program which will enables you to track the money you have lost/made on a share, as well as store the the dividends you get from the share,
Therefore giving you a complete ongoing picture of how that share is performing???
report thisRoy K
Nov 06, 2012 at 17:42
Financial Times site, portfolio tool is great for tracking funds or shares, also has charting to compare shares or funds to benchmark. It is also printable. also FT has plenty of info on all shares and up to date prices.
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.