Maitland/AMO Morning Monitor – Monday 7 October 2019

7th October 2019

What really matters... COVID-19

The FTSE, CAC and DAX are all expected to open marginally lower this morning.

In Asia, markets traded mixed on Monday afternoon. Japan’s Nikkei 225 fell by 0.26%, erasing earlier gains. The Topix index also gave up gains and fell 0.15%. South Korea’s Kospi traded slightly higher, with shares of Hyundai Motor gaining 1.19%. In Australia, the S&P/ASX 200 advanced 0.6% as all sectors gained.

Stock market moves

In other news

  • HSBC to axe up to 10,000 jobs in cost-cutting drive
  • Kazakh fintech group postpones London IPO
  • New whistleblower emerges in Trump’s Ukraine scandal

Politics today

  • Jeremy Corbyn holds talks on Brexit with key opposition figures including the Liberal Democrat leader Jo Swinson and the SNP's Ian Blackford in Westminster
  • Deadline for Boris Johnson to respond to London Assembly Oversight Committee about his relationship with US businesswoman Jennifer Arcuri
  • The Court of Session in Edinburgh is expected to rule in the case brought by the SNP's Joanna Cherry seeking to make Boris Johnson comply with the Benn Act

Corporate announcements

* Maitland Client

SIG PLC Trading Update
  • The Group is taking ongoing actions to address the deterioration in the level of construction activity in key markets, and rising political and macro-economic uncertainty.
  • Against this backdrop, the Group is now anticipating, in both the specialist distribution and roofing merchanting businesses, significantly lower underlying profitability for the full year than its previous expectations.
  • Further benefits from transformational initiatives and the Group’s normal seasonality are still expected to deliver a stronger second half.
  • The Group has entered into agreements following competitive processes to sell its Air Handling Division and also its Building Solutions business.
Unite Group PLC Unite disposes of two assets for £96 million
  • The Group announces the disposal of two wholly owned properties in Coventry, comprising 1,127 beds for £96m.
  • The properties in question are Callice Court and Millennium View, which offer 736 and 391 beds respectively.
  • The properties are being sold to Mapletree Investments Pte Ltd and have both now exchanged and completed. The purchase price is in line with book value.
  • Richard Smith, CEO, said: “This transaction takes Unite’s share of disposals in the year to date to £250 million and supports our ongoing strategy of recycling assets to enhance our portfolio quality and maintain financial discipline. We intend to dispose of approximately £150-200 million of assets per annum over the next three years.”