Slow crawl back to normality

A mixed bag of trading updates, earnings reports and dividend news is keeping the FTSE in slightly negative territory despite a more positive global background of declining infection numbers and the ongoing reopening.

Charts (6)

A mixed bag of trading updates, earnings reports and dividend news is keeping the FTSE in slightly negative territory despite a more positive global background of declining infection numbers and the ongoing reopening. The current set of corporate earnings, though already not positive, is only a warmup for what is to come later this year as it is showing the impact of the only the first month of the corona lockdown in the UK and Europe.

Still, in amid the negative revenue reports and the general trend towards cutting dividends, any company that is keeping its dividend in place is quickly becoming very popular. This is the case with consumer debt checker Experian, which has bounced nearly 7% this morning after it said that it would leave the dividend unchanged this year.

Retailer Marks & Spencer reported a 21% hit to annual profits as clothes sales at its major stores were hit during the pandemic, but the company’s decision to speed up its turnaround programme helped lift shares 5%. The stock still has a long way to go to make up for this year’s losses at it trades just a whisker above 90, down from 215 at the start of the year.

Airlines and aerospace components makers took a further dive this morning as global travel still remains largely restricted and the likely pace of recovery for the rest of the year is looking as if it will be fairly slow.

Property firms also took a hit this morning despite government data showing that house prices held up fairly steadily in England, regardless of the onslaught of the coronavirus. On average house prices in England slipped only 0.1% from February with London prices rising 4.7% .

More from Indices

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.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital 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), GAIN Capital Singapore 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 GAIN Capital Singapore 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 GAIN Capital Singapore 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.

GAIN Capital Singapore 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.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.