Why Standard Chartered plc, Wm. Morrison Supermarkets plc and Rio Tinto plc Should Beat The FTSE 100 Today

Shares jumped in Standard Chartered plc (LON: STAN), Wm. Morrison Supermarkets (LON: MRW) plc and Rio Tinto plc (LON: RIO).

| 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) has risen cautiously this morning, up 0.2% to 6685 points, ahead of the Bank of England’s quarterly inflation report. Investors were yesterday pleased with the news that Janet Yellen, the new chair of the US Federal Reserve, is likely to continue reducing the US central bank’s monthly bond-buying stimulus programme.

We’re now waiting to see whether Bank of England governor Mark Carney will overhaul his interest rate strategy. Carney has previously stated that he wouldn’t consider an interest rate rise until unemployment reached 7%. It was thought that it would take until 2016, but the latest unemployment rate stands at 7.1%.

These are the shares that should beat the market today:

Standard Chartered

standard charteredShares in Standard Chartered (LSE: STAN) are up 2.5% to 3,302p this morning, after news that the bank has appointed Michael Benz as the new head of private banking. Benz, formerly of Swiss bank Julius Baer, has spent over 20 years in asset management, private banking and treasury.

Standard Chartered, which conducts more than three quarters of its business in Asia, escaped from the financial crisis largely unscathed. However, in December the bank warned that its 10 year record of successive earnings expansion would likely end. The stock has fallen 26% in the last 12 months.


morrisonsShares in Morrisons (LSE: MRW) jumped 2.5% to 243p, easing slightly following an initial 5% surge, after news that the grocer’s founding family is considering taking the chain private. Private equity firms have been approached to gauge interest in a buyout, which could exceed £7 billion, but there is no certainty of a deal taking place.

Morrisons, the UK’s fourth biggest supermarket, has been a late entrant into the online and convenience store sectors. Sales tumbled over a challenging Christmas period,which might be the main reason that the family has thus far been unable to find a buyer. The Morrison family owns around 10% of the chain.

Rio Tinto

mine siteThe international mining company Rio Tinto (LSE: RIO) (NYSE: RIO.US) posts financial results this week and it has been tipped to lift profits. Rio’s shares added 55p to 3,515 during trading this morning, with analysts also expecting a dividend increase. The firm has been cutting operating costs as well as increasing productivity to combat falling commodity prices.

It is estimated that Rio will produce approximately 330 tonnes of iron ore from the Pilbara, Western Australia, in 2014. The company has a market cap of £65bn and currently trades at 8 times expected earnings. The prospective dividend yield of around 3.5% could shift when new figures are released.

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.

> Mark does not own shares in any company mentioned. The Motley Fool owns shares in Standard Chartered and has recommended shares in Morrisons.

(Rio Tinto photograph by Nevada Tumbleweed on Flickr.)

More on Investing Articles

Investing Articles

What kind of return could I expect by investing £100 monthly in a Stocks and Shares ISA?

Using a Stocks and Shares ISA to avoid capital gains tax could grow a £100 monthly investment into a second…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Can strong operational momentum keep the Informa share price rising?

FTSE 100 company Informa has been performing well, but this may be just the beginning of a multi-year trend for…

Read more »

Market Movers

What’s going on with the Britvic share price?

Jon Smith flags up why Britvic's share price is surging on Friday, but believes that the company is in a…

Read more »

Cheerful young businesspeople with laptop working in office
Dividend Shares

2 super-cheap passive income shares I’m eyeing up right now

Jon Smith discusses two of his favourite passive income shares in the banking and property sectors, both featuring yields above…

Read more »

Chalkboard representation of risk versus reward on a pair of scales
Investing Articles

Up 37.5% in just 12 months, I think this is one of the FTSE 100’s best investments

Our author says this FTSE 100 company is likely to keep on capitalising on the AI and data boom. But…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

This UK share just spiked 15% on bid news. Can we bag a quick profit?

UK share prices are having a good 2024, so far, and this one's already up 39%. Two takeover bids in…

Read more »

Young Caucasian man making doubtful face at camera
Investing Articles

I’m ‘blowing a raspberry’ at Raspberry Pi shares. Here’s why

Some early investors have made great profits from Raspberry Pi shares. But our writer's questioning whether the 'easy money' has…

Read more »

Asian man looking concerned while studying paperwork at his desk in an office
Dividend Shares

Here are brokers’ new price targets for Legal & General and National Grid shares

City analysts are generally very positive on National Grid shares. But they're not quite as bullish on the Legal &…

Read more »