FTSE earnings to the fore

A mixed set of results and trading updates is lifting the FTSE on increasing signs that businesses and different regions are going back to some form of their previous lives.

Charts (5)

A mixed set of results and trading updates is lifting the FTSE on increasing signs that businesses and different regions are going back to some form of their previous lives. A clear sign of that is that airlines are getting ready to take back to the skies. Ireland’s Ryanair, which has kept a skeleton schedule of 30 flights a day across Europe throughout the crisis, said Tuesday it will restart 40% of its flights from 1 July although new rules will mean that passengers will not be able to queue for the toilets but instead ask for their turn.  

Vodafone is leading the FTSE gainers after it posted better than expected full-year profit numbers while Morrisons is also gaining ground following a Q1 trading update. The supermarket’s sales increased nearly 6% over the last three months although some of its outgoings rose too as it doubled its delivery capacity through cooperation with Amazon and Deliveroo.

Is there life coming back into retail stocks?

B&Q owner Kingfisher is also trading higher helped by a 2.7% increase in sales in the first week of May compared with a 74% fall in April. The company is getting ready to bring back some of its furloughed work force as it reopens stores in the UK and France.

Property developer Land Securities lost the most ground among all FTSE 100 stocks after it reported a pre-tax loss of $1 billion. Land Securities’ main exposure is to retail property and shopping centres like Bluewater. The group has been bleeding money while shops remained closed during the pandemic and because tenants have been defaulting on their rents.

Build your confidence risk free

More from Indices

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.