Rolls-Royce has a habit of occupying the top spot in the FTSE 100 leaderboard. Today was no different, after some bullish remarks from Deutsche Bank.
According to Christophe Menard of the German bank, the engine maker’s results showed that its restructuring plan is “starting” to deliver.
The group that makes engines for long haul passenger jets, as well as nuclear propulsion systems used by the Royal Navy submarine fleet, has issued a stronger-than-expected forecast for this year, promising operating profit of up £2 billion. By 2027, it aims to achieve profits of £2.8 billion.
Menard stated that he felt confident Rolls would meet its targets given the “aggressive” start of cost-savings, which includes plans to eliminate up to 2,500 positions by the end next year. He reaffirmed the “buy” rating of the bank on the stock, and suggested that shares should be valued at 465p. These shares, which are up about 150 percent since last year at this time, closed up another 12p or 3.3 percent, closing at 370 1/2p. This is their highest level in over five years.
Rolls’ performance was not enough to compensate for the bleak corporate results, which weighed down the senior index. It fell 58 points or 0.8 percent to 7,624.98, and the FTSE 250 dropped 150 points or 0.8 percent to 19,013,58.
St James’s Place has sunk to a new 11-year low, 505 3/4p, after a drop of 18.6 percent, or 115 34 p.
Persimmon, Berkeley Group, and Taylor Wimpey all fell by 39p or 2.9 percent to £13.311/2 and 95p or 2 percent to £45.52 respectively as Taylor Wimpey reported disappointing results. Taylor Wimpey’s shares fell 6 3/4p or 4.8 percent to 133 3/4p after the company reported a half-diminishing of profits by 2023.
The developer Country Garden in China, who announced that a liquidation request had been made against them, raised concerns about China’s property sector. This sector is a major user of industrial metals. The stronger dollar and the resulting impact on metal prices were both significant. Anglo American dropped by 52 1/2p or 3 percent to £17.10, Fresnillo declined by 16 1/4p or 3.5percent to 451 1/2p, and Antofagasta shed 25p or 1.4percent to £17.731/2.
Takeover fever also gripped other insurance sectors after Ageas, a Belgian company, announced that it was considering a takeover bid for Direct Line. Shares of the FTSE 250 Motor insurer rose 38 3/4p or 23.8% to 202 1/4p. This helped Sabre Insurance to rise 3 1/4p or 2.1% to 159 1/4p.
HICL infrastructure is a FTSE 250 Investment Group. It moved up 3p or 2.5 per cent to 124 1/2p following a £50 million share purchase and announcing that it would be selling its entire stake of the US Northwest Parkway Toll-Road Project for $232 million. This represents a 30% premium over the company’s value at the end December.
Magnesita was another good performer. The maker of heat resistant bricks and wall linings for furnaces saw its share price rise by 86p or 2.4% to £36.74 after it beat estimates with revenues of €3.5bn.
Animalcare Group a small veterinary marketing and sales business rose by 30 1/2p or 15.8% to a high of 223p in 13 months after announcing that it had sold its majority stake of Identicare (its British pet microchipping company) for almost £25 million .
EnSilica soared by 9 1/2p or 15.5% to 71p. The technology company’s low-power chips are used in cars, aircraft, heart monitors, and mobile phones.
As it continues to pursue plans to return NatWest to private ownership, the government has begun talks with brokers to help sell its shares.
In November, the state, which became NatWest’s largest shareholder in 2008 when it saved Royal Bank of Scotland (as the group then was called), said that it wished to reduce its shareholding in the business, by selling NatWest shares directly to the public, even as early as in June.
NatWest has reported a profit before tax of £6.2 billion in 2023
Bloomberg reports that the government has begun discussions with a few brokers, such as AJ Bell, Hargreaves Lansdown and others, to help it sell shares to retail investors.
Treasury began selling its stake in FTSE 100 in 2015. Ministers aim to sell it all by 2026. It currently holds a stake of 32,9% in the company.
After months of uncertainty, NatWest confirmed this month that Paul Thwaite will be its permanent chief executive. This confirms the Treasury plan. Thwaite, who is 52 years old, was appointed interim boss by Dame Alison Rose in July after she was forced to leave the company over the Nigel Farage Account Closure Scandal.
Last night, NatWest closed at 236 1/2p, up 2 3/4p or 1.2 percent.