Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

February 9, 2023

MSCI think Hindenberg have a point

Macro & Overnight

Oil and precious metal prices were higher overnight.

Alphabet fell 7% after its ChatGPT counter-offensive failed to excite investors. The AI-hype wars continue.

Global index provider MSCI has said that “certain investors” in Adani Group “should no longer be designated as free float under our methodology”. They are sort of saying that they think Hindenberg Research has a point.

 

UK Company News

Astra Zeneca issued FY results. Guidance for 2023 revenue is to increase by a low-to-mid single-digit, excluding COVID-19 medicines. It expects EPS to increase by a high single-digit to a low double-digit percentage. AZ plans to initiate more than thirty Phase III trials this year, of which ten have the potential to deliver peak year sales of over $1bn.

Housebuilder Bellway updated on a robust H1 performance, with record completions. However, unsurprisingly elevated mortgage rates and the end of Help-to-Buy have contributed to a 43.8% decrease in reservation rates. Despite this, it still has a sizeable forward order book, with reservation rates in January improving from the levels in Q4 2022. 

Oil and gas producer Diversified Energy announced a £130m equity raise at a 5% discount to fund further US-producing assets. 

IQGeo, the geospatial productivity and collaboration software for the telecoms and utility industries, announced a follow-on contract for IQGeo’s integrated Project and Construction Management software for a Global Top 5 telecom operator.

Elsewhere in the geospatial sector, Oxford Metrics‘ AGM update said it had entered FY23 with a record order book. Following an excellent start to the new financial year, the Group has continued to experience high order intake and has a substantial order book. Together with recently shipped systems and current sales pipeline opportunities, the Group has 100% visibility on revenue expectations for the FY. In line with previous years, the Group will be second-half weighted in terms of revenue. (Note here.

Prognosticator 

 

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