We’re gearing up for the heat of results season for mid and large cap British stocks. This week has been a rehearsal. The big load starts next week, with more than 50 companies set to announce final or interim results between Tuesday and Thursday.
We’ll take a look ahead to some of those names later. But first, a review of the week just gone.
Starting with the positives, including companies news, which has been largely devoid of trouble. Monday did bring further disappointment for anyone clinging onto Argentex (LON:AGFX) - it looks like shareholders are more likely to end up with nothing than the 2.49p that would have come from the acquisition. There were a couple of black marks on Thursday and Friday, with Treatt (LON:TET) among the biggest fallers of the week. But overall, results and updates have been pretty resilient.
That flies in the face of economic updates which, on Thursday revealed that growth in private sector business activity slowed in July, with the PMI composite output index reading coming in below already depressing expectations. Company headcounts are also on the way down, with the government’s rising national insurance bills the likely culprit. And we’ve had news that shoplifting in England and Wales is at its highest level since records began - that’s not great for business.
And yet, the FTSE 100 has blown through the 9,100 mark (on Thursday) and seems to have stayed there. That’s another all time high. The more domestic-focused 250 has also had a decent week. We’re not seeing all time highs there yet, but we’re seeing positive momentum.
There is even something positive to say about Aim. The momentum from the nadir in April seems to have been sustained and now the market is back at the level it was at this time last year. Another 22% and it will be back to all-time parity, which would be a disappointment for all the Aim-bashers out there, but nice for anyone who maintains faith that the junior market has potential.
How to navigate a big week for financial results
It’s easy to get lost in the madness of financial results season. I remember having to return home early from my cousin’s wedding in Madrid when I worked at the Investors’ Chronicle, such was the pressure of producing coverage on such a huge number…
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