Winning Hands Down


Success for Hargreaves Lansdown

Thursday, 8 August: Markets had a day of respite, as the majority of global bourses recovered some losses from the past few days. Towards the end of yesterday’s session on Wall St. their respective bourses reversed heavier losses, and overnight Japan’s Nikkei climbed 0.4%, with the Hang Seng +0.5%. At the European open the FSTE was lifted modestly, with miners also having a better day and this momentum was carried through before we eventually closed 1.2% higher. Better than expected Chinese export data helped investors stray from safe havens and as we write the S&P is 1.4% higher, alongside the Dow which is 1% higher so far. But thus far Trump hasn’t slowed down his relentless pace of tweets and that could prompt a shift in sentiment. Today he continues his attack on the Fed, still seems rather unhappy about China and their currency and also just wants America to have a fair chance against the rest of the world. Poor guy.

It was a fairly busy day for results, with Aviva, Hargreaves Lansdown and Cineworld among those reporting. Starting with insurance provider Aviva, it seems they could be considering a strategic shift as they announce that they’re reviewing their Asian businesses, as difficult trading has hit their life and asset-management businesses. Shares closed 1.8% higher.

Hargreaves Lansdown was the standout performer on the day, with shares climbing 11.8% on the back of full year profit climbing 4.6%. The tick up comes despite lower net inflows and various headwinds from Brexit uncertainty and low UK investor confidence. They increased their share in the trading market to 34.1%. Shares have endured a rough time following the fallout from Woodford’s plight but their growth prospects have won investors over.

Cineworld’s profits in the first half of their year have fallen due to the timings of blockbuster film releases. They remain confident of full year expectations, given performance weighted to the second half looks set to benefit from a raft of huge films, including Frozen 2. Shares closed the day 1.4% lower.

It was a slightly disappointing update from Coca-Cola HBC as profit fell 10% to the half-year, due to higher costs but they have backed full year expectations. Real estate services provider Savills also produce lacklustre results leading to shares closing 2.4% lower on the day, reflecting lower transaction volumes but they did see a rise in revenue.

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