Equity Briefing: Rio Tinto, Burberry and Renold

Mining giant Rio Tinto release an operational update this morning, luxury fashion line Burberry will post first-quarter results, while industrial chain maker Renold is scheduled to publish preliminary full-year results.

Stocks (2)

Want the latest news to come to you?

You can get the latest market-moving news and incisive insight sent straight to your inbox every day, including the Equity Briefing, by subscribing to receive our market commentary updates.

Click here to subscribe.

Rio Tinto

Rio Tinto is due to release an operational update covering the second quarter today. These updates concentrate solely on production numbers rather than financials and the primary focus is on whether the miner’s output has kept on track for it to meet its full-year targets. Production of most commodities fell in the first quarter as Rio Tinto is constantly adjusting output to prioritise value over volumes, but it maintained its guidance for 2021 across the board. Reiterating its annual targets will be the priority for investors this morning.

Burberry

Burberry will release a first-quarter trading update this morning. Burberry’s quarterly trading updates focus solely on revenue figures. Analysts are expecting first-quarter revenue of £444.5 million. That will be a marked improvement from the £257 million booked the year before, flattered by the fact sales were hard-hit as the pandemic erupted and lockdowns started to bite. Revenue will also start to benefit as Burberry focuses more on full-price sales and reducing the number of markdowns it makes in the new financial year. While this should benefit topline revenue it will hurt comparable store sales. Investors will also watch out for news on the search for a new CEO after Marco Gobetti, who has led the company’s transformation over the past three years, announced last month that he is leaving at the end of 2021.

Renold

Renold, the maker of industrial chains and power transmission products, is scheduled to publish annual results this morning. The company was hard hit by the pandemic in the first half, but things have been steadily improving since then. We already know that order intake was down 7.4% in the year to £170.0 million and that revenue fell 12.7% to £165.3 million. But, with revenue down just 8.3% year-on-year in the final quarter, Renold will be eyeing a return to pre-pandemic levels of activity in the new financial year. Analysts are expecting adjusted pretax profit to fall to £6.2 million from £8.2 million and for adjusted EPS to drop to £1.90 from £2.90 the year before.

How to trade top stocks

You can trade a variety of stocks with City Index by following these four steps:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the company you want to trade in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade 

More from Equities

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.