Share Talk Expected Market Updates For The Week Ahead, 15 – 19 August 2022

Although not as prominent as the recent weeks, the coming days’ financial calendar has many A- and B list stars including Persimmon and Phoenix Group, Watches of Switzerland, Plus500, Kingspan, BHP, Thungela Resources and a few key UK economic releases.


Although the week’s company diary begins in a quiet fashion, there are some large companies that have been inked.

Phoenix Group PLC, an FTSE 100-listed closed-book life insurer, saw its shares increase almost 15% in the month, just ahead of its first half results. This included Prudential, L&G, and Aviva.

Although it is difficult to predict the timing of any deal, UBS analysts stated that they believe there is a possibility of an announcement at the interim results. This was even after the purchase by Sun Life UK earlier in the month for less than £250mln.

A deal in the medium size range of approximately £500mln would add “2-3% value” to the current share price. This is why UBS views Phoenix as having the strongest momentum. It also reflects the group’s “relatively high” market sensitivity, which UBS compares to other peers.

Thungela Resources Ltd is a coal miner that was spun out from Anglo American last Summer. One short-seller said it was ” value zero”. It has been in high demand during the European energy crisis, and its shares have risen more than 200% this year.

It should not be surprising that the results are expected to be better than anticipated, having already released a trading statement earlier this month in which it stated that earnings were expected higher than previously planned.

Given the strong price of thermal coal and the higher realized prices in the first quarter, revenues were on the decline. However, the company stated that it was affected by rising operating costs and rising energy prices.

Investors who have been closely following the energy crisis will be eager to learn more.

China’s retail sales will be closely watched in economic news. This is especially true after recent trade figures showed a strong recovery in China’s exports, but low imports for the second-largest economy. This was against the backdrop of Beijing’s strict zero covid policy.

Important announcements made Monday

Interims MTI Wireless Edge PLC Thungela Resources Ltd., The Phoenix Group PLC

AGMs Downing Once VCT PLC. Forwards Partners Group PLC

Economic announcements RICS Housing Market Survey


Investors Watches of Switzerland PLC will be hoping record-breaking trading from the previous year continues when it publishes its first-quarter results.

The FTSE 250 group reported its full-year results in July. Revenues increased 40% and the group had “strong momentum” due to continued footfall at airports.

BHP Group PLC, a mining giant, is no longer listed on the FTSE 100. However, it is still quoted in London as one of the bellwethers in the industry.

Its final results will be closely monitored for further confirmation of whether the high water market in big mining earnings for this cycle has passed and whether Anglo-Aussie rival Rio Tinto is cutting its dividend.

Tuesday will also bring you the latest UK jobs figures. Wage growth is again the key number to be on the lookout for.

The May wage growth was 6.2%, 4.3% excluding bonuses. It is expected to decrease to 5.2% and 4.4% in June.

Real wages have fallen as consumer price inflation rose to 9.4% in June, its highest point in 40 years.

For the three months ending June, unemployment is expected to remain at 3.8%. May saw 1.3 million job openings and 75.9% employment, which is a fraction lower than the pre-pandemic peak.

AJ Bell financial analyst Danni Hewson commented that it all looked very encouraging, given the gloomy tone in the most economic commentary.

“However, it is important to remember that employment data can be backwards-looking due to the time between hiring firms and finding the right candidate.

“If there is a slowing down in the job market, and the quoted recruiters have not yet flagged any such trend, you might expect to see it first in the vacancy figures.

“Indeed some economists argue that any downturn could prove to be shallow as the large vacancies figure will fall first before firms can get around to firing any employees.”

Important announcements made Tuesday

Finals: BHP Group Ltd (LSE:BHP, ASX:BHP)

Interims: Bank of Georgia Group PLC, Genuit Group PLC(LSE:GEN), Impact Healthcare REIT PLC [LSE:IHR], Tremor International Ltd. (AIM :TRMR), Tribal Group PLC (“AIM:TRB”)

Trading updates Watches of Switzerland Group PLC [LSE:WOSG]

AGMs: RUA Life Sciences (AIM:RUA) PLC

Economic announcements Unemployment Rate (UK), ClaimantCount Rate (UK), Building Permits(US), Housing Starts/US), Capacity Utilisation/US), Industrial Production/US

US earnings – The Home Depot, Walmart


Persimmon PLC will be aiming to rebuild its reputation after a downturn in July’s trading.

The FTSE 100-listed company forecasted an 8% decrease in turnover to £1.7bn. Project completions were slower in the first half due to planning delays and shortages of staff and materials.

UBS analysts stated that investors will be interested in new information such as “margin and current trading” and “the outlook”.

Wednesday will offer an overview from the infrastructure side. This perspective is from Balfour Beatty plc(LSE: BBY), which was last updated in May and stated that trading this year had been in line.

Its order book stood at £15.6bn at March’s end, compared to £16.1bn at 2021. However, it had a strong cash performance.

According to Peel Hunt, the UK’s construction sector is expected to continue to attract investors.

“Overall, we expect no change to the guidance for the earnings-based businesses (ahead of FY22) and continued investments/disposals.”

Plus500 Ltd, (LSE: PLUS) boosted its revenue and earnings guidance last month. The CFD broker was attracting “higher-value” customers “despite lower volumes in the financial sector”.

Revenues for the first half were estimated to reach US$511mln. EBITDA was 63% higher at US$305mln.

Peel Hunt stated that “there is still a lot to do strategically with Plus” – such as building the investment platform and investing in the US options and futures business.

The UK’s midweek macro number of importance will be inflation, as the consumer price index reached a record high of 9.4% in June.

While core prices fell back to 5.8%, higher producer and output prices indicated that there was more pain ahead.

The Bank of England increased interest rates by half of a percentage earlier in the month. A strong CPI reading could increase the possibility of a similar hike for September. However, the central bank is aware that these hikes do not have an effect on the rise of food and energy prices.

However, even with energy and food taken out, core prices remain well above the Bank’s headline target of 2 % and are expected to rise above 6% in July. The headline number rose to 9.8%, while the retail price index (used to determine student loans and train prices) reached 12.9%, up from 11.8% a month ago.

The minutes of the US rate-setters last meeting and retail sales numbers will likely move the dial in the US for stock markets.

We have some important announcements for Wednesday

Interims: Balfour Beatty PLC, Essentra PLC (LSE:ESNT), Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF), Kenmare Resources plc (LSE:KMR), Persimmon PLC, Plus500 Ltd

Trading Updates: Gen Diamonds Ltd

AGMs Calnex Solutions PLC (AIM:CLX) NextEnergy Solar Fund Ltd (LSE:NESF)

Economic announcements: MBA Mortgage Applications (US), Retail Sales fewer Autos, Retail Sales (US), Business Inventories(US), Crude Oil Inventoriess (US), Consumer Price Indexes (UK), Producer Price Indexes (UK).

US earnings Cisco Systems (NASDAQ.CSCO)


AO World Plc (LSE: AO.) Six weeks after the online retailer raised just above £40mln in order to avoid a credit insurance squeeze, AO will publish its full-year results.

This was the second report which suggested that its credit insurance had been reduced

The company stated that the proceeds of the fundraising would “strengthen our balance sheet and increase liquidity to historical levels”.

The white goods specialist’s management has laid out plans to achieve £25mln in savings and operational efficiency by 2025. They also aim for medium-term UK revenue growth of 10% per annum at 5% EBITDA margins.

Elsewhere Marshalls (LSE: MSLH) was hit by concerns about the exposure of the landscaping products group to domestic renovation work. Its shares have dropped around a third, compared to a 23% drop for the wider sector.

But a trading statement in July insisted that forward orders remain robust while activity in new build housing and infrastructure/commercial areas has continued to be strong.

Peel Hunt analysts stated that “The integration Marley will be closely monitored while we also expect to see the group fully pass through higher raw material, freight, and energy costs in the half.”

Important announcements Thursday

Finals: Eco Animal Health Group PLC (AIM:EAH), Omega Diagnostics Group PLC (AIM:ODX), Rank Group PLC (LSE:RNK)

Interims: AO World PLC, Helio Towers PLC, Intelligent Ultrasound Group PLC (AIM:MED), Marshalls PLC

AGMs Molten Ventures VCT PLC. Oryx International Growth Fund. Simec Atlantis Energy PLC.

Ex-dividends to Reduce the FTSE 100 By 19.21 Points: Pershing Square and Imperial Brands, GSK. Anglo American, HSBC, HSBC Holdings. Hikma Pharmaceuticals. London Stock Exchange. abrdn. Legal & General. Aviva, Prudential. Berkeley Group. M&G. Entain.

Economic announcements Continuing Claims, Initial Jobless Claims, Philadelphia Fed Index (US), Existing Home Sales.

US earnings Applied Materials, Estee Lauder


Kingspan PLC shares fell to the same lows as in the immediate panic over the pandemic. The building insulation material supplier sent out a trading update.

The Ireland-based Kingspan predicted a record-breaking first-half trading profit, at EUR415mln. This is an increase of EUR329mln. However, the accompanying comments by Kingspan were the “first tangible indication of weakness in the sector”, according to analysts at Deutsche Bank. They lowered their target price for shares to EUR70, from EUR110.

It was “probably the first truly negative outlook statement in the sector so far,” the analysts stated. They felt that management was stressing the fact that the mood in many end markets had deteriorated in the past two months with order intake volume down significantly over the May and June periods in 2021, but still ahead of the same period of 2019.

This suggests that Interims from Kingspan will not be only closely watched by its investors, but also by other potential investors.

According to GfK’s survey, UK consumer confidence is likely to continue to slide. This was reflected in planned protests across Britain about the cost-of-living crisis that will begin next week.

Economists see the Gfk figure worsening a click to -42. This is the lowest level in the survey’s history dating back to the mid-1970s.

The Office for National Statistics also has official UK retail sales figures.

After a 0.4% increase in June, July will see a 0.2% decrease month-on-month. The annual decline, however, is expected to be 2.8%, down from 5.9% last year.

The total sales of fuel and other products are expected to fall 3.3% last year and 0.2% each month.

Important announcements Friday

Interims: Apax Global Alpha PLC, Kingspan PLC
AGMs: Braemar Shipping Services (LSE:BMS) PLC, Citius Resources PLC (LSE:CRES), Volex PLC (AIM:VLX)

Economic announcements GFK Consumer Confidence UK, Public Sector Net Borrowing UK, Retail Price Index UK, Retail Sales UK

US earnings by Deere & Co

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