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The FTSE 100 saw small increases in Thursday’s trade as worries about inflation and geopolitics were overcome by a bullish outlook for the manufacturing sector. Bond yields in the U.K. increased as markets reduced expectations of interest rate cuts from the Bank of England amid higher-than-expected inflation. The Confederation of British Industry’s Industrial Trends Survey showed manufacturing output volumes fell in the quarter to November, at a faster pace than in the three months to October. The monthly net balance of new orders was -19 in November versus -27 in October, better than the expected -25. Manufacturers expecting output volumes to rise modestly in the quarter to February provided some support to market sentiment.Single Stock Stories:
Health and safety equipment manufacturer Halma is the top percentage gainer on London’s FTSE 100 index. The company’s shares have risen, reaching their highest level since January 2022, after reporting growth in half-year revenue and profit. Halma has maintained its full-year forecasts and increased its interim dividend by 7%. The CEO expects the company to deliver good organic constant currency revenue growth and an adjusted EBIT margin of around 21%, within the target range. Halma’s half-year revenue increased 13% to £1.07 billion, while adjusted pre-tax profit jumped 18% to £209.2 million. Including the session gains, the stock is up approximately 21% year-to-date.
Close Bros.’s stock has dropped 2.3%. The British lender expects its 2025 outlook to be impacted by possible motor finance reparation claims. Early in November, the company started up some of its motor credit lending operations again, and it anticipates starting up again soon. With the exception of any potential redress or provision for motor financing redress claims, the business is still optimistic that its CET1 capital ratio will be between 14% and 15% at the conclusion of the 2025 fiscal year. When October ended, its CET1 ratio was 13.2%.
CMC Markets’ shares declined 13.9%, leading the FTSE 250 index in losses. The company reiterates its net operating income forecast to align with the market’s expectation of 332.9 million pounds for the year ending March 2025. Analysts attribute the share movement to the absence of a forecast upgrade in the results posted on Thursday. The company reports a pre-tax profit of 49.6 million pounds in H1, compared to a pre-tax loss of 2 million pounds a year ago. H1 trading revenues surged 50% year-on-year to 131.3 million pounds, driven by strong performance in its institutional and retail segments. The CMCX stock has risen approximately 180% year-to-date.
British sportswear retailer JD Sports Fashion’s shares declined 14.4% to 96.72p, reaching a over 2-year low. The stock is the top loser on the FTSE 100 index. The company expects its pre-tax profit to be at the lower end of its previously issued guidance range of 955 million pounds to 1,035 million pounds ($1.21-$1.31 billion). Underlying sales fell 0.3% in the third quarter due to volatile trading in October. Investec analysts said the group’s longer-term growth opportunities were being overlooked, but better trading would need to be seen before any recovery in valuation. JD shares have fallen approximately 42% year-to-date.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225
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