FTSE 100 fades ahead of ECB meeting, while Travis Perkins drops 7%

Discussion in 'Market News' started by Lily, Oct 22, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Wickes owner warns profits will be at low end of expectations after poor summer

    Leading shares are heading lower again ahead of the latest meeting of the European Central Bank. Investors are hoping for a dovish tone from ECB president Mario Draghi, but few believe that an announcement of an extension to quantitive easing will be made.

    The biggest FTSE 100 faller is Travis Perkins, down 147p or more than 7% at £18.16, as the building materials group and Wickes owner warned that profits would be at the lower end of market expectations. It blamed weaker than expected demand in the repair, maintenance and improvement market during the summer.

    As with others in the sector, Travis Perkins is finding the trading environment in the UK tough. It has warned that it experienced weaker summer demand. However, it is putting a brave face on things and claiming that lead indicators point to a recovery during the fourth quarter. Santa may bring an early Christmas present, but we are not holding our breath. We will be reviewing our (previously broadly consensus) forecasts following the conference call. But for now they are clearly under review. However, given the deterioration in trading we are maintaining our sell recommendation and reducing our target price from 1950p to 1650p.

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