Market update: Oil stocks help FTSE 100, JD Sports Fashion struggles despite results cheer
10:11 , Graeme Evans
BP, Shell and BAE Systems today boosted the FTSE 100 index in a session that welcomed forecast-beating results from JD Sports Fashion.
At a time when conflicts in the Middle East were escalating, Brent Crude Oil rose above 75 dollars per barrel. blood pressure it reversed recent losses with an increase of 3%, or 11.9 points, to 412.9 points, and Shell It added 72.56p to 2550.5p.
defense firm BAE Systems The FTSE 100 index showed its resilience for the second consecutive session, rising by 35.12 points to 8311.77 and rising by 24 points to 1297.5 points.
airline stocks easyJet And IAG while struggling JD Sports Fashion It topped the list of declines due to a decline of 4%, or 5.35 points, to 144.1 points on the results day.
The sale comes despite half-year revenues rising 5.2% to a record £5bn and adjusted profits rising 2% above City forecasts to £405.6m.
Broker Peel Hunt described the results as impressive, especially in the US market.
But shares fell after JD flagged a possible £20m hit to foreign currency in the second half and investors reacted to last night’s results from Nike, which withdrew its full-year guidance along with a drop in first-quarter net income.
The UK-focused FTSE 250 index decreased by 41.10 points to 20,873.60 points. Wizz Air 4% decrease and Aston Martin Lagonda 5% off at the top of the fallers board.
electricity retailer AO World It rose 2%, or 1.8 points, to 111.4 points following the announcement of the £10 million takeover. musicMagpieBuying and selling used electronics, music and games. The bid price of 9.07p sent AIM-listed musicMagpie up 2.7p to 8.5p.
Among companies reporting today, Topps Tiles Shares were broadly unchanged at 43.8p after it reported annual sales of £248 million. In the face of “very challenging” conditions, the figure is down 5.7% from last year’s record, but is in line with fiscal 2022, it said.
Meanwhile, Epic Shares rose 12%, or 13.8 points, to 126.4 points after it was confirmed that it was in talks with Belgium’s Ageas about a potential insurance partnership.
Saga shares jump on potential Ageas merger
09:40 , Graeme Evans
Saga shares rose more than 10% after the over-50s financial services and travel provider confirmed it was discussing a possible insurance deal with Belgium’s Ageas.
Sky News, which first reported the talks last night, said that in the planned deal, Ageas would make upfront payments and then commission payments in exchange for taking over running parts of Saga’s insurance operations.
He added that this move will allow Saga to repay its debt and transition to a new business model. Ageas is one of Europe’s largest insurers and abandoned its takeover of Direct Line in March.
Saga, which has postponed the announcement of interim results planned for today, had a market capitalization of £160 million at close last night. Shares rose 14%, or 16.2 points, to 128 points this morning.
JD impresses but Nike shares slide on weak first-quarter performance
09:28 , Graeme Evans
JD Sports Fashion’s profits of £406 million in the six months to August 3 were above City expectations of around £386 million.
Peel Hunt described the result as impressive given the circumstances, particularly in the US, where margins increased alongside an increase in like-for-like sales.
While the UK and Europe have been resilient in tough promotional markets, the broker said the retailer had controlled costs well.
Shares fell 5.1 points to 144.4 points; This was not helped by the decline in Nike’s first-quarter net income, as well as the 6% drop it suffered last night after withdrawing its full-year guidance.
AJ Bell investment analyst Dan Coatsworth said: “The cracks in the athletics market increasingly appear to be related to company-specific issues rather than the industry losing momentum.
Peel Hunt reiterated its Buy recommendation and 250p target price following JD’s results.
BP and Shell keep FTSE 100 in positive territory, easyJet falls
08:36
BP and Shell shares rose 2% on the FTSE 100 index after escalating conflict in the Middle East sent Brent Crude back above $75 a barrel.
Defense firm BAE Systems also rose 2%, or 24.5 points, to 1298 points in the session, which saw the London high rise 31.54 points to 8308.19.
Airline shares endured another tough session as EasyJet and BA owner IAG fell 7.4 points to 494.2 points and 2 points to 193.2 points respectively.
The FTSE 250 index fell 23.03 points to 20,891.67, while AO World rose half a penny higher to 110p following a proposed deal to buy musicMagpie.
JD Sports ‘steps ahead’ amid retail optimism
08:26
JD Sports Fashion shares are down 4% following today’s half-year results; It fell 6.25 points to 143.25 points, undoing some of the 113-point recovery at the beginning of July.
Hargreaves Lansdown analyst Aarin Chiekrie said despite today’s weakness, JD was back in the spotlight after a period of volatile conditions and lacking market expectations.
He added: “The recent acquisition of US-based Hibbett has been massive, increasing the group’s store count by around a third. This means there are significant growth opportunities ahead if JD succeeds in executing.
“Valuation is still well below the long-term average, which looks like an attractive entry point for investors looking to bet on a bullish retail sector.”
Topps Tiles sales fall in “very challenging” market
07:52 , Graeme Evans
Topps Tiles reported annual sales of £248 million, down 5.7% on last year’s record but broadly in line with financial year 2022.
In the fourth quarter, sales were 4.4% lower, or 8.2% on a like-for-like basis; because trends improved towards the end of the year due to poor comparisons.
FTSE All-Share described conditions for the company throughout the year as “very challenging”, particularly for larger ticket projects. The broader market is believed to be down 10-15% year-on-year.
While economic indicators point to a stronger market in 2025, CEO Rob Parker said the timing and trajectory of the recovery is difficult to predict.
AO World flocks for musicMagpie
07:38 , Graeme Evans
Home electrical firm AO World is to buy musicMagpie after the two companies agreed a takeover deal worth around £10 million today.
AIM-listed musicMagpie, which sells second-hand mobile phones, technology products, CDs, DVDs, games, books and clothing, will increase AO’s consumer technology offering.
Founder and CEO John Roberts said: “A premium exchange service will be essential and musicMagpie represents a key enabler in unlocking value through our reverse supply chain.”
Founded in 2007, musicMagpie has operations in Macclesfield and Greater Manchester and in Atlanta, Georgia in the USA. AO’s bid price of 9.07p compares with last night’s 5.75p and the 25p level at the end of last year.
JD Sports Fashion’s profits rise amid currency headwinds
07:21 , Graeme Evans
Transatlantic retailer JD Sports Fashion today reported record half-year results after revenues hit £5bn and adjusted profits rose 2% to £405.6m.
The group operates from 4,506 stores following the acquisition of 1,179 Hibbett sports fashion stores in a deal completed towards the end of the half-year.
JD continues to expect profits of between £955 million and £1.03 billion for the year, although this depends on specific exchange rates.
The strengthening pound affected today’s headline profit figure by £6m, and the company is forecasting a second-half gain of £20m at current rates.
Index rose slightly, Brent Crude Oil approached $75 per barrel
07:00 , Graeme Evans
Brent Crude oil futures rose 1.7% today to $74.77 per barrel, continuing their rise since yesterday’s Iranian missile attack.
On Wall Street, the S&P 500 index closed down 0.9% as traders reacted to events in the Middle East and a poor report on the manufacturing sector.
The FTSE 100 index, which closed with a 0.5% increase yesterday, was seen at 8287 with an increase of 11 points this morning. Defense firm BAE Systems rose 2.5% and oil company BP rose 2%.