The FTSE 350 steadied on Tuesday, despite continuing political and economic uncertainty.
FTSE bounces back
First we thought Chancellor Kwasi Kwarteng was going to bring forward the publication of his fiscal plans. But then he confirmed he wasn’t, and was sticking to his original date of 23 November. Oh, and then he later said he will release it all early after all. Confused? You will be.
The FTSE 100 still put in a positive day, gaining 178 points (2.6%) to close back above the 7,000 level at 7,086 points. Banks and insurers were among the day’s winners, while utilities companies were among the few fallers.
The FTSE 350 added 101 points (2.7%) to end Tuesday at 3,909 points. It’s sometimes possible to gauge market sentiment and guess were things might go the next day. But trying to figure what the market might do Wednesday is not easy.
We might see a UK boost Wednesday after US markets recorded another day of gains. The S&P 500 put on 113 points (3.1%) Tuesday to close at 3,791. At the same time, the Nasdaq closed above 11,000 at 11,176 points, for a 361-point (3.3%) gain.
The S&P 500 and Nasdaq are now both up 5.7% in the first two days of the week.
Tesco heads the market news Wednesday, with the supermarket giant set to deliver first-half results. The first quarter saw a small like-for-like sales fall in the UK and Ireland, excluding Booker sales. But Tesco’s market share increased a little.
The Tesco share price is down 15% over the past 12 months, and 12% down over five years. But the company has been paying progressive dividends, forecast to yield around 5.5% this year.
Wednesday is another thin day on dividend news, but shareholders in international property services company Savills should be getting their interim dividend payments. A modest full-year yield of 2.4% is forecast, after weakness has sent Savills shares down 37% in the past 12 months.
Brokers are remaining mostly positive in their recommendations on FTSE 100 stocks. Deutsche Bank has just reiterated its buy stance on AstraZeneca, setting a share price target of 12,000p — 20% ahead of the current price. It follows a day after Citigroup also reiterated its buy recommendation on the pharmaceuticals giant.
Barclays, meanwhile, is bullish on Reckitt with a target of 8,900p, hoping for a 49% gain.