Graham Spooner, Investment Research Analyst at The Share Centre, gives his thoughts on what to expect from companies announcing results week commencing 29 May 2017.
OPG Power Ventures (Q4 trading update)
Investors' hopes that the company would have benefitted from the pick-up in the Indian economy have so far come to nothing.
The company were hit earlier in the year from changes in the currency, weather patterns and even the death of a Tamil Nadu minister. An update on the proposed move into solar generation, along with its existing operations will be worth noting in this update.
We currently list OPG Power Ventures as a BUY
Johnson Matthey (Q4 results)
The share price has underperformed year to date and there was another broker downgrade last week. As reported in a recent trading update, visibility remains low for the group's products and the outlook for some other markets has weakened. With over half of group profit coming from its Emission Control Technology division, the company remain geared to demand for cars and trucks. Investors will therefore be keen to hear its outlook on global demand, along with an update on its move to four business divisions instead of five.
We currently list Johnson Matthey as a HOLD
Announcements w/c 29 May 2017
1 and 2 June
Purchasing managers indexes covering UK manufacturing and construction – Markit/Chartered Institute of Procurement & Supply.
Earlier this year, PMIs tracking UK manufacturing and construction were disappointing, but April saw an improvement, with the manufacturing PMI rising from 54.2 – a four month low – to 57.3 – a three year high. A subsequent survey from the CBI pointed to robust growth in manufacturing in the May. The construction PMI also rose, from 52.2, to 53.1. The data painted a much more benign outlook for the UK economy than many economists had forecast. Did May see a continuation of the good form?
US Employment Situation, May – Bureau of Labor Statistics.
After a disappointing March, US non-farm payrolls jumped by 211,000 in April, while US unemployment fell to 4.4%, a decade low. US average hourly earnings rose by 0.3%. The data was encouraging, but also gave ammunition to the hawks at the Fed's rate setting committee, the FOMC. If the May data is similarly positive, then it will become even more likely that the Fed will increase interest rates when the FOMC meets later in the month.
Further announcements include:
- EU Unemployment, April – Eurostat
- Flash estimate euro area inflation, May – Eurostat
- Purchasing managers indexes covering manufacturing, euro area – Markit, US – ISM and Markit, China – Caixin and official, rest of world – mainly Markit