Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Beaufort Securities Breakfast Alert -

Beaufort Securities Breakfast Alert -

Markets

Europe
The FTSE-100 finished yesterday's session 1.49% lower at 7,170.69, whilst the FTSE AIM All-Share index was down 1.01% at 1,021.64. In continental Europe, the CAC-40 finished 1.98% lower at 5,151.68 whilst the DAX was down 2.62% at 12,260.29.

Wall Street
Last night in New York, the Dow fell 1,032.89 points, or 4.15%, to end the session at 23,860.46.The S&P 500 lost 100.66 points, or 3.75%, to close at 2,581 and NASDAQ finished 274.83 points lower at 6,777.16.

Asia
In Asia this morning, the Nikkei 225 was down 576.11 points, or 2.63%, at 21,314.75 heading into the close. Meanwhile, the Hang Seng was 1,144.86 points, or 3.76%, lower at 29,306.41.

 

Oil
At around 6:15am, WTI crude was 0.62% lower at $60.53 per barrel and Brent was down 0.65% at $64.39 per barrel.

 

 Headlines

Asia stock markets drop sharply after US falls
Major Asian markets suffered sharp losses on Friday, following another day of steep falls on Wall Street. In a volatile week for global investors, Japan's Nikkei 225 index slid 2.8%, while China's Shanghai Composite slumped by 4.1%. Earlier, the Dow Jones Industrial Average fell by more than 1,000 points for the second time this week. Sell-offs around the world have been pinned partly on concerns over higher interest rates. Elsewhere in Asia on Friday, Hong Kong's Hang Seng pulled back 3.7%, while South Korea's Kospi index traded down 1.6% and Australia's S&P/ASX 200 eased 0.8%. Those losses came as little surprise, with moves in major US markets providing the cue for global investors.

Source: BBC News

Company news

 

Xtract Resources (LON:XTR) 2.35p – Speculative Buy
Xtract Resources announced yesterday that it has concluded an amended agreement with Omnia Mining for exploitation of alluvial deposits on its Manica operation in Mozambique. Omnia is an experienced alluvial contractor that operates an underutilised plant 3km west of the Manica concession. Under terms of the agreement, Omnia will provide monthly payments based on the run-of-mine performance and will start building settlement dams and processing from February 12. Omnia is expected to be fully operation with a minimum throughput of 100t per hour no later than 15 May. The agreement is for a maximum of 10 years, unless the alluvial deposits are depleted sooner.

Our view: The amended agreement with Omnia allows it to mine the O block of the western Manica concessions, which is close to the contactor’s existing processing plant. We now look forward to steady state operations from both the eastern and western portions of the alluvial concession. The above agreement should lead to increased efficiencies as Omnia’s existing plant is located adjacent to the O block. We maintain our Speculative Buy rating on the stock.

Beaufort Securities acts as corporate broker to Xtract Resources PLC

 

GlaxoSmithKline (LON:GSK) 1,310.00p – Buy
GlaxoSmithkline (GSK.L) reported Q4-17 results yesterday which showed balanced growth across GSK’s three global business activities, Pharmaceuticals, Vaccines and Consumer Healthcare, both over the Q4 period and the full year 2017. This balanced growth across three independent business activities is one of the key reasons we like GSK as an investment, along with its currently low relative valuation and high and sustainable dividend yield.

Looking at the results in detail , GSK reported 4% organic revenue growth over the Q4 period ( Pharma +3%, Vaccines +9%, Consumer Health +4%) and 5% growth in Adj. Operating profit to £2bn, accompanied by strong free cash flow generation in the quarter. The full year results were similar in terms of growth rates, and allowed GSK to pay a full-year dividend of 80p per share and guide towards 80p for 2018.

Importantly, CEO Emma Walmsley highlighted three key drug approvals; the Shingrix Vaccine for shingles, Trelogy Ellipta for COPD, and Juluca for the treatment of HIV. She also clearly stated that GSK’s first priority is its pharmaceutical business, the pipeline and new launches, thus M&A risk has receded in our view.

Click here to see Beaufort's research note on GlaxoSmithKline published yesterday

Important Risk Warnings and Disclaimers 

This report is published by Beaufort Securities Ltd ("Beaufort Securities"). Beaufort Securities Ltd is Authorised and Regulated by the Financial Conduct Authority and is a Member of the London Stock Exchange. 

RELIANCE ON THIS NOTE FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE YOU TO A SIGNIFICANT RISK OF LOSING ALL OF THE FUNDS, PROPERTY OR OTHER ASSETS INVESTED OR OF INCURRING ADDITIONAL LIABILITY. 

This document is not an offer to buy or sell any security or currency. This document does not provide you with individually tailored investment advice. It has been prepared without regard to the your financial circumstances and objectives The appropriateness of a particular investment or currency will depend on your individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for you. 

This research is non-independent and is classified as a Marketing Communication under FCA rules. As such it has not been prepared in accordance with legal requirements designed to promote independence of investment research and it is not subject to the prohibition on dealing ahead of the dissemination of investment research in COBS 12.2.5. However Beaufort Securities has adopted internal procedures which prohibit analysts from dealing ahead of non-independent research, except for legitimate market making and fulfilling clients' unsolicited orders. 

By receiving this document, you will not be deemed a client or provided with the protections afforded to clients of Beaufort Securities. When distributing this document, Beaufort Securities is not acting for you and will not be responsible for providing advice to you in relation to this document. Accordingly, Beaufort Securities will not be responsible to you for providing the protections afforded to its clients. 

Beaufort Securities may effect transactions in shares mentioned herein and may take proprietary trading positions in those shares, and may receive remuneration for the publication of its research and for other services. Beaufort Securities may be a shareholder in any of the companies mentioned in this report. Accordingly, this document may not be considered as objective or impartial. Additionally, information may be available to Beaufort Securities or the Group, which is not reflected in this material. The remuneration of the author of this report is not tied to the recommendations on any shares mentioned nor to the any transactions undertaken by Beaufort Securities or any affiliate company. Further information on Beaufort Securities' policy regarding potential conflicts of interest in the context of investment research and Beaufort Securities' policy on disclosure and conflicts in general are available on request. Please refer to http://www.beaufortsecurities.com/important-info. 

Past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. The listing requirements for securities listed on AIM or the ICAP Securities & Derivatives Exchange are less demanding and trading in them may be less liquid than main markets. This may make it more difficult to buy and sell these securities. 

 

This document includes certain statements, estimates, and projections with respect to the anticipated future performance of securities listed on stock exchanges and as to the market for these shares. Such statements, estimates, and projections are based on information that we consider reliable and may reflect various assumptions made concerning anticipated economic developments, which have not been independently verified and may or may not prove correct. No representation or warranty is made as to the accuracy of such statements, estimates, and projections or as to its fitness for the purpose intended and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only and may change without notice. Other third parties may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views, and analytical methods of the analysts who prepared them. This report has not been disclosed to any of the companies mentioned herein prior to its publication. 

This document is based on information Beaufort Securities has received from publicly available reports and industry sources. Beaufort Securities may not have verified all of this information with third parties. Neither Beaufort Securities nor its advisors, directors or employees can guarantee the accuracy, reasonableness or completeness of the information received from any sources consulted for this publication, and neither Beaufort Securities nor its advisors, directors or employees accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document (except in respect of wilful default and to the extent that any such liability cannot be excluded by the applicable law). You should not rely on this document and should not use it substitution for the exercise of the independent judgment of yourself or your adviser. 

The information contained in this document is confidential and is solely for use of those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. Other persons who receive this document should not rely on it. Beaufort Securities, its directors, officers and employees may have positions in the securities mentioned herein.

 

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use