Latest news with #FTSEAll-Share
Telegraph
18-04-2025
- Business
- Telegraph
Cash is not king. During a market rout, seek undervalued income
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Extreme stock market volatility will inevitably prompt some income investors to declare that 'cash is king'. After all, cash does not fluctuate in value and currently offers an income return in excess of 4pc. However, holding cash for the long term is problematic for several reasons. It offers no capital growth potential, which means it has a rather drab long-term track record versus shares, and is likely to produce a diminishing income return as monetary policy easing continues. By contrast, share prices are extremely likely to rise from their current levels and produce growing dividends as the economic outlook gradually improves. Therefore, rather than sitting on piles of cash in perpetuity, Questor believes that drip-feeding excess cash into undervalued shares is a far better idea. With several high-quality income shares now offering lower valuations and higher yields than they did earlier this year, there is a wide range of attractive options for income-seeking investors. For example, FTSE 250-listed The Merchants Trust has a dividend yield of 5.5pc thanks to its 5pc share price decline since the start of the year. This is 190 basis points higher than the FTSE All-Share index's yield, and the trust has the added bonus of raising its dividend for the past 43 consecutive years, a record it won't be keen to lose. While this does not guarantee further dividend growth in future, when combined with revenue reserves amounting to around 65pc of last year's shareholder payout, it suggests the trust could prove to be a relatively reliable income option. In addition, its dividends have risen at an annualised rate of 6.3pc since 1982. This compares favourably with an average annual inflation rate of around 3pc over the same period and, as a result, its shareholders have enjoyed a material increase in their purchasing power. The company's recent share price decline also means that it now trades at a 2.3pc discount to net asset value. This compares with an average discount of just 0.2pc over the past five years and suggests the trust offers good value for money. Separately, the company's major holdings are dominated by well-known FTSE 100 stocks including British American Tobacco, GSK and Shell. However, it also has significant exposure to mid-cap shares, with 32pc of its assets currently invested in the more domestically-focused FTSE 250 index. This is significantly higher than the mid-cap index's representation in the FTSE All-Share, which sits at roughly 15pc of the wide-ranging market, meaning the trust's performance is more closely aligned with the UK economy's performance vis-à-vis its benchmark. In Questor's view, this adds to Merchants' overall appeal. The FTSE 250 has, after all, been exceptionally unpopular with investors over recent years. As a result, depressed valuations were widespread even before the stock market's recent bout of extreme volatility. Over the long run, today's grossly undervalued stocks could deliver strong total returns as the economy's performance gradually improves. Of course, a significant mid-cap focus and a gearing ratio of just over 14pc mean the company's share price is likely to be relatively volatile. It could even fall further in the short run as the ongoing global trade war may yet worsen before it improves. We must also note that the company's shares have lagged the FTSE 100 index by 10 percentage points since our 'buy' recommendation in February 2020. In this column's view, however, Merchants has a sound long-term outlook. Its relatively appealing valuation, significant exposure to the grossly undervalued FTSE 250 index and substantial gearing mean it is well placed to deliver capital growth as the economy's outlook improves. When considered from an income perspective, the company's generous yield and longstanding track record of inflation-beating dividend growth equate to a worthwhile long-term opportunity. The company therefore becomes the latest addition to our income portfolio. We will use excess cash generated from previous sales to fund its notional purchase. Clearly, some investors will naturally be tempted to do the opposite and hold cash during the current period of economic and stock market turbulence. However, this column firmly believes that gradual purchases of high-quality, undervalued dividend stocks represents a far superior means to obtain an attractive income over the coming years.
Bloomberg
14-04-2025
- Business
- Bloomberg
Stump Price for Wood
By Morning, I'm Louise Moon A long old M&A saga could finally be reaching an endpoint. It's for FTSE All-Share listed Wood Group — not the largest company by a long stretch, but a rollercoaster tale of a fall from grace. And another foreign company swooping in on cheap London stocks.
Yahoo
13-03-2025
- Business
- Yahoo
FTSE 100 Live 13 March: Deliveroo and Trainline shares reverse, Hornby plans AIM exit
Deliveroo posts first profit Hornby to leave stock market John Lewis bonus pause continues 10:14 , Graeme Evans Calmer stock market conditions today failed to prevent a bumpy ride for the shareholders of Trainline, Deliveroo and the cider maker C&C. The shares slumped by between 8% and 15% during a busy session for results and updates in the FTSE 250 index. The FTSE 100 index was quiet in comparison, with London's top flight up by 0.4% or 36.30 points to 8577.27 following last night's steadier Wall Street session. The only blue-chip stock in the spotlight was Halma as the safety technology conglomerate's year-end update kept with its two-decades run of profit growth. Despite varied trading conditions across its end markets, Halma forecast an adjusted margin modestly above its previous 21% guidance. Halma rose 4% or 118p to 2758p as the best performing stock in the FTSE 100, placing it ahead of AstraZeneca after the drugs group rose 210p to 11,860p. Vodafone also lifted 1.1p to 71.1p and British Airways owner IAG recovered after a bout of heavy selling with a rise of 3.8p to 281.4p. Housebuilders Persimmon, Barratt Redrow and Taylor Wimpey gave up recent gains near the top of the fallers board, while NatWest, gambling group Entain and Endeavour Mining were lower after being marked ex-dividend. The biggest price moves were in the FTSE 250 index, including Trainline's 13% reverse after its year-end update failed to ease jitters over the impact of the government's plans for a single public sector rail app. The company reported its third successive year of record net ticket sales but shares fell 40p to 273.8p, leaving them 35% lower so far in 2025, after revenues growth of 12% came in slightly short of City expectations. Deliveroo fell 9% or 11.3p to 113.3p as guidance for 2025 disappointed the City, offsetting the landmark of the delivery firm's first annual profit. Adjusted earnings rose 52% to £129.6 million, but the impact of 'targeted investments to capture future growth opportunities' means that Deliveroo sees this year's figure in a range of £170 million-£190 milion. That compares with the market consensus of £194 million. C&C shares posted the biggest fall in the FTSE 250, down 16% or 24.2p to 123.6p after the Bulmers cider business said softer trading conditions in January and February had left full-year earnings modestly below target. It adds that the new financial year's results are likely to be marginally ahead, below the level of improvement forecast by analysts. On a brighter note in the FTSE 250, ventilation products business Volution jumped 11% or 56p to 575p after upgrading full-year guidance alongside a 10% rise in interim profits to £38.6 million. In the FTSE All-Share, DFS Furniture jumped 11% or 13.8p to 145p after reporting an acceleration in order intake at the start of 2025. It now expects full-year underlying pre-tax profits between £25 million and £29 million. 09:28 , Graeme Evans Trainline shares are down 13% or 39.8p to 274p, despite the travel app's year-end update showing record net ticket sales for a third year in a row. It also announced a further buyback of shares worth £75 million. The 12% advance to £5.9 billion in the year to 28 February was within Trainline's previously upgraded guidance range but slightly short of the City consensus. Revenues of £442 million were 12% higher on a constant currency basis. Adjusted earnings as a percentage of net ticket sales are also expected to be marginally ahead of the company's previously upgraded guidance of 2.6%. Trainline also addressed the government's plans for a single public sector rail app, a development that has shaken the share price in recent weeks. Chief executive Jody Ford said: 'There is still so much to be achieved in the UK and Europe with the critical foundation being open, fair and competitive markets. 'Rail is set to surge across Europe and Trainline will be at the centre of it." 08:39 , Graeme Evans The FTSE 100 index is down 2.15 points at 8538.82, with NatWest, gambling group Entain and Endeavour Mining down by more than 2% after their shares went ex-dividend. Safety technology firm Halma rose 3% or 70p to 2710p, the best in the top flight after it nudged margin guidance modestly higher. The company is on track for a 22nd consecutive year of record adjusted profit. In the FTSE 250, the shares of Bulmers cider business C&C fell 19% or 28.6p to 119.4p after it said softer trading condition in January and February had left earnings modestly below target. The shares of Trainline also weakened 44.2p to 269.6p after it posted a year-end update, while Savills reversed 5% and Deliveroo by 7% in the wake of annual results. 08:06 , Graeme Evans DFS Furniture today lifted profit guidance amid strong trading at the start of 2025. The retailer of living room and upholstered furniture doubled half-year underlying profits to £17 million for the six months to 29 December. Order intake has since increased to 11% higher in the first 10 weeks of the second half, having been up by 10% in the first half. DFS said: 'As a result of the continued strong trading, good cost control and assuming no further supply chain disruption we expect to outperform consensus expectations and deliver underlying pre-tax profits of between £25-£29 million.' The company also reiterated longer term goals, including for £1.4 billion of full year revenues. Chief executive Tim Stacey added: 'We are on track to deliver full year profit performance ahead of market expectations and our confidence in the group's capabilities and future potential has never been higher.' 07:38 , Graeme Evans Retailer John Lewis Partnership has said it will not pay a staff bonus for the third year in a row despite seeing annual profits rebound higher. The employee-owned business, which runs the department store chain and Waitrose supermarket arm, posted a 73% jump in pre-tax profits to £97 million for the year to January 25. On an underlying basis, profits tripled to £126 million from £42 million a year ago. It will not pay a bonus to its workforce of around 73,000 people, instead saying it would prioritise another £114 million in overall pay and up to £600 million of investment in the business. Read more here 07:34 , Graeme Evans Model railways firm Hornby is to cancel its AIM stock market listing. Hornby said: 'The board is well aware of the place Hornby has in the hearts of its loyal shareholder base, and the company's announcement today is not taken lightly. 'The directors are confident that operating as a private entity will provide Hornby with the necessary agility for swift decision-making and efficient execution of strategy whilst not depriving shareholders of material benefit.' The company has been listed on AIM since 2015, having previously held a main market listing. It is the latest company to leave AIM, with life sciences firm Synairgen announcing plans to do so earlier this week. The move by Hornby is effective from 10 April, subject to approval at a meeting of shareholders on 1 April. Hornby said current levels of liquidity did not offer investors the opportunity to trade in meaningful volumes or with frequency within an active market. Over the past 12 months the average daily volume of Hornby shares as a proportion of its issued share capital is 0.03%. It also highlighted the 'considerable' annual cost of about £400,000 associated with maintaining a listing. AJ Bell investment director Russ Mould said: ''Hornby's decision to delist from AIM is not a damning criticism of the UK stock market. 'When two shareholders – Phoenix Asset Management and Frasers – own 91% of the company, it doesn't make sense to be a listed entity. 'Companies admit their shares for public trading to obtain a diverse shareholder base and access capital markets. In Hornby's case, its shareholder base has become incredibly concentrated. 'Hornby has had a tough ride over the years and Phoenix has been an incredibly supportive and patient shareholder. Sometimes a business is better off away from the public markets and that looks to be the case with Hornby.' Read more here 07:19 , Graeme Evans Deliveroo co-founder and chief executive Will Shu today said the delivery firm's 'strategy is working' after it recorded a full-year profit for the first time. Today's annual results showed an increase in revenues of 2% to £2.07 billion after gross transaction value lifted 5% to £7.4 billion, equivalent to £25.10 per order. Adjusted earnings rose 52% to £129.6 million, while at the bottom line the FTSE 250-listed company recorded a profit of £2.9 million. This compared with a loss of £31.8 million the previous year. Deliveroo, which was founded in 2013, works with about 186,000 restaurants and 135,000 riders to provide delivery services across 10 markets. For 2025, the company forecast gross transaction value percentage growth in the high-single digits and adjusted earnings in the range of £170-190 million. Read more here 07:02 , Graeme Evans The S&P 500 index last night closed 0.5% higher, boosted by a bigger than expected fall in February's US inflation rate to 2.8%. The Nasdaq Composite also rallied 1.2% but the economic uncertainty caused by US tariffs meant the Dow Jones Industrial Average lost 0.2%. The blue-chip FTSE 100 index, which yesterday climbed 0.5% to close at 8541, is forecast to make a flat start to today's session. The gold price is near a record high at $2940 an ounce, Brent Crude trading at $70.79 a barrel and the pound at a four-month high above $1.29. Sign in to access your portfolio
Yahoo
11-03-2025
- Business
- Yahoo
Fact check: FTSE 100 had its best day in five months in January
Chancellor of the Exchequer Rachel Reeves said the FTSE index had had its best day 'for a couple of decades' during her time as Chancellor. She said: 'There was a front page in one of the papers about a record increase in bond yields in one day – you know the chancellor should resign or whatever. 'And then a week later it was a record fall in bond yields and best day for the FTSE for a couple of decades – wasn't on the front of any papers.' Ms Reeves' comments came at around 38 minutes and 50 seconds into the recording. Neither the FTSE 100 or any of the other largest FTSE indices have had their best days in decades since Rachel Reeves became Chancellor. The FTSE 100 had a better performance in April 2024 than it has had on any single day since Ms Reeves took the job. The FTSE did at one point reach an all-time high under Ms Reeves's chancellorship. What is the FTSE? The FTSE can refer to one of several different indices of shares. Those indices include different groups of companies, for instance the FTSE 100 – the main FTSE index which makes up around 80% of the value of the London Stock Exchange – includes 100 of London's biggest listed companies. There is also the FTSE 250, which covers the following 250 largest listed companies, the FTSE 350 – which is the 100 and 250 indices added together – and the FTSE All-Share. There are also many much, much smaller FTSE indices. It is highly unlikely the Chancellor would be referring to these. It is most likely that the Chancellor was referring to the FTSE 100, but it is impossible to say for sure, so the other indices must also be examined. What day was the Chancellor referring to? The Chancellor was likely referring to the FTSE 100's result on January 17 2025. That day the FTSE 100 gained 114.3 points – a strong performance for the index, and the best performance in January. A week earlier markets for UK Government bonds – also known as gilts – had seen yields shoot up. Did the FTSE see its best day in 'a couple of decades'? None of the main FTSE indices have had their best days in decades during Ms Reeves time as Chancellor. The FTSE 100 gained 114.3 points on January 17. That was a strong performance, however that was only its best performance since August 7 2024 when the index added 140.2 points. August 7 was therefore the best day for the FTSE 100 during Ms Reeves's time as Chancellor. But that was also not the best 'for a couple of decades' – it had gained more on April 21 2024 when the index rose by 145.2 points. What about other FTSE indices? The FTSE 250 gained 567.3 points on January 15 2025. That was the best day for that index during Ms Reeves's chancellorship, but not the best day for decades. The index had a better day – adding 622.4 points – on November 14 2023. The FTSE 350's best day during Ms Reeves's chancellorship was August 7 2024 when it gained 72.9 points. That was the best day since March 21 2024 when it rose by 76.8 points. The best day for the FTSE All-Share since Ms Reeves became Chancellor was August 7 2024 when the index rose by 71.81 points. That was the All-Share's best day since March 21 2024 when it closed the day up 74.97 points. There are also several other FTSE indices, however the four above are by far the most important. It would be very unusual for the Chancellor to be referring to any of the other indices. What might the Chancellor have been referring to? It is possible that the Chancellor misspoke. The FTSE 100 has reached the highest score in history during her time in Number 11 Downing Street. The Treasury was asked to clarify the Chancellor's comments, but had not replied at the time of publication. Electoral Dysfunction podcast (archived) IG – What is the FTSE 100? (archived) Coutts – What is the FTSE 250? (archived) FTSE Russell Factsheet – FTSE 350 Index (archived) FTSE Russell – FTSE UK Index Series (archived) Yahoo Finance – FTSE 100 Goldman Sachs – UK gilt yields are forecast to decline in 2025 despite recent surge (archived) Yahoo Finance – FTSE 250 Yahoo Finance – FTSE 350 Yahoo Finance – FTSE All-Share Halifax – FTSE Aim 50
The Independent
11-03-2025
- Business
- The Independent
Fact check: FTSE 100 had its best day in five months in January
Chancellor of the Exchequer Rachel Reeves said the FTSE index had had its best day 'for a couple of decades' during her time as Chancellor. She said: 'There was a front page in one of the papers about a record increase in bond yields in one day – you know the chancellor should resign or whatever. 'And then a week later it was a record fall in bond yields and best day for the FTSE for a couple of decades – wasn't on the front of any papers.' Ms Reeves' comments came at around 38 minutes and 50 seconds into the recording. Evaluation Neither the FTSE 100 or any of the other largest FTSE indices have had their best days in decades since Rachel Reeves became Chancellor. The FTSE 100 had a better performance in April 2024 than it has had on any single day since Ms Reeves took the job. The FTSE did at one point reach an all-time high under Ms Reeves's chancellorship. The facts What is the FTSE? The FTSE can refer to one of several different indices of shares. Those indices include different groups of companies, for instance the FTSE 100 – the main FTSE index which makes up around 80% of the value of the London Stock Exchange – includes 100 of London's biggest listed companies. There is also the FTSE 250, which covers the following 250 largest listed companies, the FTSE 350 – which is the 100 and 250 indices added together – and the FTSE All-Share. There are also many much, much smaller FTSE indices. It is highly unlikely the Chancellor would be referring to these. It is most likely that the Chancellor was referring to the FTSE 100, but it is impossible to say for sure, so the other indices must also be examined. What day was the Chancellor referring to? The Chancellor was likely referring to the FTSE 100's result on January 17 2025. That day the FTSE 100 gained 114.3 points – a strong performance for the index, and the best performance in January. A week earlier markets for UK Government bonds – also known as gilts – had seen yields shoot up. Did the FTSE see its best day in 'a couple of decades'? None of the main FTSE indices have had their best days in decades during Ms Reeves time as Chancellor. The FTSE 100 gained 114.3 points on January 17. That was a strong performance, however that was only its best performance since August 7 2024 when the index added 140.2 points. August 7 was therefore the best day for the FTSE 100 during Ms Reeves's time as Chancellor. But that was also not the best 'for a couple of decades' – it had gained more on April 21 2024 when the index rose by 145.2 points. What about other FTSE indices? The FTSE 250 gained 567.3 points on January 15 2025. That was the best day for that index during Ms Reeves's chancellorship, but not the best day for decades. The index had a better day – adding 622.4 points – on November 14 2023. The FTSE 350's best day during Ms Reeves's chancellorship was August 7 2024 when it gained 72.9 points. That was the best day since March 21 2024 when it rose by 76.8 points. The best day for the FTSE All-Share since Ms Reeves became Chancellor was August 7 2024 when the index rose by 71.81 points. That was the All-Share's best day since March 21 2024 when it closed the day up 74.97 points. There are also several other FTSE indices, however the four above are by far the most important. It would be very unusual for the Chancellor to be referring to any of the other indices. What might the Chancellor have been referring to? It is possible that the Chancellor misspoke. The FTSE 100 has reached the highest score in history during her time in Number 11 Downing Street. The Treasury was asked to clarify the Chancellor's comments, but had not replied at the time of publication. Links Halifax – FTSE Aim 50
