Market Commentary - Housing, Infrastructure, Construction and Services 20th March
News today comes from Michelmersh, the small UK brick maker, with its finals, JLIF, also with finals, Volution with its interims and Carillion with news of a £90m construction contract in Cyprus to build a communications centre for the MoD’s Defence Infrastructure Organisation (DIO). No news on the Bovis/Redrow/Galliford Try front.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 17th March 2017
Berkeley Group’s trading update this morning emphasises the turbulence it has faced in the last 12 months (since the rises in Stamp Duty). There are three key messages Balfour Beatty was the backmarker yesterday with a 4.3% fall to 271.8p.
Read more...Amazon vs. Google - Homefront pt. II
Amazon is pre-emptively moving to keep Google out.
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Just what the Fed wanted
A rate increase and a rising market – but was it really dovish?
Having primed markets to fully expect a US rate increase, the FOMC followed through on the 15th March. If the aim was to deliver a rate increase without abruptly causing tighter financial conditions (code for declining equity and credit markets), then it was mission accomplished. Following the FOMC announcement the dollar eased against other currencies, bond yields fell and equity markets gained. However, despite comforting language within the statement we detected a more strategic, rather than data dependent, direction for US interest rates in the press conference Q&A.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 16th March 2017
Balfour Beatty has announced its results for 2016 and Serco has bagged one of its “Elephant” contracts, becoming the preferred bidder on the 20 year/£1.6bn contract for the new Grafton correctional centre in NSW Australia. Babcock was the best gainer yesterday rising 2.3% to 914p as investors were reassured by the presentation on the new reporting structure.Serco’s news is very positive and adds to its reputation for winning big projects under the new team
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 15th March 2017
It’s a day for the heavy side materials producers to report. Forterra and Marshalls have delivered their 2016 results this morning. Forterra had a revenue increase of 1.5% last year to £295m and underlying EBITDA rose 4.6% to £71m. Marshalls shows revenue up 3% in 2016 at £397m and EBITDA up 17% at £61m. As a consequence of those improvements and lower interest charges and tax rates EPS rose by 32% to 18.95p (consensus was at 17.8p).
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 14th March 2017
SIG is the main news today providing its numbers for 2016 and a new CEO. The main moves yesterday were the two ‘ Serves, Interserve and Homeserve. At the top end of our “league table” Capita got more support closing up 4.4% at 569p; investors perhaps now see the risk/reward and are accepting it.
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