Spreadex Market Update
FTSE crosses 6200 once again, but cable stalls under $1.42; Kingfisher and Game Digital post mixed updates
Rising around 20 points after the open the FTSE once again crossed 6200 this morning; whether it can finally see a sustained increase above that level, which it has struggled with throughout March, is unclear. In all likelihood such a limited day of data means the index may find it hard to gain much momentum as the day goes on. At least the FTSE is receiving a bit of help from Brent Crude, which is grazing $41.50 per barrel and is helping to add a smattering of green to a rather mixed set of commodity stocks. Whilst the UK index teased fresh 2016 highs the pound continued to suffer, cable starting the day under $1.42 following yesterday’s inflation-fuelled fall.
Over in earnings-land Kingfisher managed to rise around 1% after stating that its ‘ambitious’ restructuring plan (which caused so much investor-ire at the end of January) was on track, the B&Q-owner’s 20.5% plunge in full year pre-tax profit to £512 million countered by a 2.3% increase in like-for-like sales. Whilst jury is likely still out on the company-reshuffle, through which Kingfisher intends to boost annual pre-tax profit by £500 million in 5 years whilst returning £600 million to investors, today’s update seems to have calmed investors’ fears, for now at least.
Game Digital’s investors weren’t as kind this Wednesday; the video game retailer dropped by over 2.5% this morning as it revealed it was slashing its dividend (a familiar sight this earnings season) by 77% to 1.67p after suffering a 32% fall in half year pre-tax profit to £22.5 million following a 6% slump in sales. The retailer continues to struggle in the face of the omnipresent Amazon, its prices a tad too high for gamers seeking a relative bargain at the online giant.
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