Why Old Mutual plc, Ferrexpo Plc and Grainger PLC Should Beat The FTSE 100 Today

Old Mutual plc (LON: OML), Ferrexpo Plc (LON: FXPO) and Grainger PLC (LON: GRI) respond well to news.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The FTSE 100 (FTSEINDICES: ^FTSE) started off tentatively around last night’s close, briefly peeking above it, before cautious comments from the Bank of England sent it down 64 points to 6,540 by the time of writing. Although the bank is keeping interest rates low until unemployment falls, it spooked investors by opining that the economic recovery is still week.

We have a select few companies in the FTSE indices making gains today. Here are three that are rising after good news:

Old Mutual

Insurer Old Mutual released interim results this morning, and saw its share price put on 9.8p (5.1%) to 202p. The firm saw net cash inflow of £9.1bn, against £3.5bn in the first half last year, with funds under management up 9% to £289.3bn. That led to an adjusted operating profit jump of 14% to £801m, with earnings per share up 22% to 9.3p, enabling a 20% boost to the firm’s interim dividend to 2.1p per share.

A similar 20% rise in the final dividend would add up to 8.4p per share, for a yield of 4.2%. The shares are now up nearly 20% over the past 12 months, though they have been higher.

Ferrexpo

Interim results from Ferrexpo (LSE: FXPO) sent the iron ore pellet producer’s shares up 8.1p (5%) to 172p. Sales were up 19% to 5.32 million tonnes, driving revenue up 6% to $775m and EBITDA up 1% to $244m. Pre-tax profit did fall, by 12% to $150m, but production is expected to increase in the second half thanks to the opening of a new mine at Ferrexpo Yeristovo Mining.

Today’s boost provides a little respite for the share price, which is down around 12% over the past 12 months. The shares are on a forward P/E of only 5.6 based on forecasts, with a 3% dividend yield predicted.

Grainger

Shares in Grainger (LSE: GRI) got a modest boost this morning, up 1.7p (1%) to 184.5p, but they have just about doubled in price over the past year. Today’s stimulus came in the form of an interim statement telling us that the firm has reached its debt reduction target sooner than expected. As of 6 August, the property manager’s net debt stood at approximately £985m, below its £1bn target “well ahead of schedule“.

Operational performance is said to be strong too, with rents in line with expectations and fees increased to £9.9m, from £7.8m at 31 July 2012.

Finally, if you’re looking for investments that should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits.

But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.

> Alan does not own any shares mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

£10,000 invested in BAE Systems shares at the start of 2025 is now worth…

Harvey Jones's BAE System shares have smashed the market so far in 2025. Yet while this remains a core FTSE…

Read more »

A young black man makes the symbol of a peace sign with two fingers
Investing Articles

As UK shares plunge, dividend yields soar! These 2 income stocks look appealing

The stock market took a hit earlier this month, but it's not all doom and gloom. Mark Hartley uncovers two…

Read more »

Investing Articles

Here’s why I think investors should consider this FTSE 100 rival instead of Rolls-Royce shares

Rolls-Royce shares have had a great run, but I don't see much more gas in the tank. When thinking in…

Read more »

Dividend Shares

Here’s a 6-stock ISA portfolio that could make £1.55k in monthly passive income

Jon Smith outlines some of his favourite income stocks that could be used within an ISA to generate a 7%+…

Read more »

Investing Articles

Forecast: by April 2026, the Apple share price could turn £1,000 into…

The Apple share price is down almost 20% from the fallout of US tariffs, but has the market overreacted? Zaven…

Read more »

Investing Articles

Down 72%, can this former FTSE darling get its mojo back?

With luxury brands getting hit by weak consumer confidence and trade wars, Andrew Mackie examines the health of this FTSE…

Read more »

Investing Articles

Forecast: in just 12 months, the Sainsbury’s share price could turn £1,000 into…

J Sainsbury’s share price is tumbling as a rival retailer makes aggressive moves to recapture market share. But could this…

Read more »

Investing Articles

As stocks fall, is this a rare chance for investors to start earning a second income?

A sudden drawdown in the stock market can be great opportunity for investors looking for a second income. But some…

Read more »