Market Prognosis

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

March 23, 2023

My work here is done, Jay Powell

Macro & Overnight

The $ slipped lower following the Fed’s decision to raise rates by 25bps. Powell adopted a more dovish tone in the press conference. It looks like a quarter point and done.

US equities thrashed around but ended lower, with banks nearly 4% lower after Yellen said the Treasury would not provide a defacto bank depositor backstop.

Attention will today focus on the BoE decision at midday.

 

UK Company News

Brokers finnCap and Cenkos announced an all-share merger. They would have over £50 million of proforma revenues and over £20m cash. Combined, they would have 210 retained listed or quoted clients with (for now) 230 employees. 

Other smaller London brokers will keep an eye on the urge to merge. 

Eastern Med gas producer Energean had FY results. It has been a transformational year. It commenced volume production, paid dividends, and laid the foundation for future growth by discovering and de-risking new natural gas resources adjacent to existing infrastructure. Q1 production from Karish is in line with expectations. 2023 production guidance is confirmed, and projects to increase the capacity of the Energean Power FPSO are on track. 

Energean is a rapidly maturing hydrocarbon producer in a geographically strategic area for the secure supply of critical energy. 

IDOX, the information management software supplier, updated that its operational and financial performance aligns with the Board’s expectations. Also, recurring revenue, contract renewals, order book and pipeline provide good visibility, leaving Idox well-placed to grow by double digits in FY23.

Safestyle, the replacement windows and doors supplier, said consumer confidence remains challenging. Within this context, the year’s order intake has been variable. It now expects revenue to be below current expectations as it strikes a balance between driving sales and the levels of investment made into the business. The medium-term strategic objectives remain unchanged.

Wickes reported that its core sales were moderately behind last year in home improvement. It has efficiency plans that will offset inflationary pressures in 2023, except for energy costs which, as previously indicated, will be £10m higher than in 2022.

Prognosticator 

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