FTSE 100 Live July 13: Surprise growth for UK economy, Brent back to $100
Clarkson upgrade boosts shares 9%, FTSE 100 lower
A major earnings upgrade by ship broker Clarkson today boosted hopes that global trade is performing better than expected.
Investors tend to watch Clarkson closely even if they don’t own shares because 85% of global trade is done by sea.
The FTSE 250-listed company, which has been around since 1852, negotiates contracts for huge tankers that transport crude or dry cargo, iron ore or grain.
An unscheduled update revealed today that trading for 2022 is well ahead of previous expectations from the company, the particularly successful brokerage division.
First-half profits are expected to be at least £42m, an increase of more than 50% on the previous year’s record, when soaring freight rates and volumes reflected a business rebound after the pandemic.
Clarkson shares jumped 9% or 280p to 3,235p today, having recently fallen to their lowest level in more than a year as investors increasingly price in a global recession.
Liberum analyst Gerald Khoo raised his 2022 earnings forecast by 17% and raised his target share price by 100p to 4,750p after the update.
He highlighted the strength of Clarkson’s business model, market leadership and global footprint, adding that signs of a long-awaited rebalancing of demand and supply across most shipping segments were now showing. feel.
Clarkson’s performance topped a largely resilient performance in the UK-focused FTSE 250 index, which leveraged today’s stronger-than-expected GDP figure to outperform the FTSE 100.
Other big risers in the second tier included Trainline and fast fashion company ASOS, with gains of 5% and 3% respectively. The FTSE 250 index was down 0.4% or 74.28 points at 18,780.68, while the Elite was down more than 1% or 76.67 points at 7133.19.
The biggest blue-chip fallers came from the financial sector after declines of more than 2% for Abrn and Prudential, while BP shares were down 1% after the price of Brent last night fell sharply to 100 $ per barrel.
Retail-focused stocks were in demand after May’s surprise 0.5% GDP figure, led by Next and JD Sports Fashion more than 1% higher.