THE TIPSTER | Kingfisher unlikely to fly
DIY retailer Kingfisher will announce first-quarter figures this week, although don’t expect too much cheer. The retailer is expected to blame the weather for a weak performance, although improved margins will have helped to prevent things from getting too fishy. A wet April in France means that the shares might look a bit soggy on the day, suggesting further declines are possible for the share price. IG Index’s price on Kingfisher is 274.3p-274.8p.
Defensive stocks have been in high demand in recent weeks with utilities like Severn Trent putting on 8.5 per cent since the beginning of April, while the FTSE has fell 7 per cent. The water company reports its finals on Wednesday and Capital Spreads quotes 1,678.1p-1681.9p.
The Aveva share price soared 10 per cent in early trading yesterday after the engineering software group reported an increase in full-year revenues. The company raised its full-year dividend by 15 per cent making it an attractive proposition for investors who are desperate for yield. The relatively high price of oil led to stronger demand for the company’s software which is used in the design of oil rigs and power stations. Yesterday’s move took the stock back to within 3 per cent of the price level before the general equity sell-off which began at the beginning of May. GFT quotes Aveva at 1,650p-1,656p.
EasyJet is a company well equipped to fly through a global recession as customers seek cheaper alternatives in the transportation sector. The reduced turbulence in the oil markets will no doubt positively impact the operating costs of the company and an expansion of flights should increase market share. The share price is facing resistance at 533p, however any break above this and we could see this stock take off. Spread Co quotes 494.03p-494.53p for EasyJet.