FTSE 100 Live Friday
- IAG unveils new buyback
- Rightmove revenues up 7%
- Bitcoin weakness continues
Market update: IAG smashes forecasts, index firm amid global jitters
10:15 , Graeme EvansForecast-beating results and a big buyback of shares today ensured British Airways owner IAG lived up its status as one of the hottest stocks in the FTSE 100 index.
The carrier’s pandemic recovery continued with a 27% rise in 2024’s underlying operating profit to $4.4 billion euros (£3.6 billion), which included a doubling of the surplus in the final quarter.
Chief executive Luis Gallego said: “We are delivering world-class margins and returns, in line with the targets we set out to the market just over a year ago.”
He announced a dividend of six euro cents a share, taking the total outlay for the year to 435 million euros (£359 million).
IAG also intends to return up to a further one billion euros of excess capital to shareholders, adding to the $350 million buyback announced in November.
The shares, which have more than doubled in the past year, rose another 5% or 16.3p to 355p at the top of the FTSE 100 index.
Broker Peel Hunt said the results were considerably stronger than City forecasts, adding that 2025 prospects were underpinned by strong leisure demand.
It said: “IAG’s 2024 results are best in class, with the operating margin of 13.8% the highest of any major airline. Aircraft supply remains constrained and demand robust, and we therefore expect consensus 2025 forecasts to rise 2-3%.”
IAG was one of a number of positive performances by companies in the results spotlight as engineer IMI lifted 4% or 79p to 1971p, education publisher Pearson gained 55.5p to 1391p and processing equipment firm Weir lifted 82p to 2368p.
Rightmove rose 20.4p to 663.6p as it said it expects revenue growth of 8-10% in 2025, on top of last year’s 7% improvement reported in today’s results.
Rolls-Royce added another 12.4p to 744p, having been yesterday’s stand-out performer after results and a £1 billion buyback helped shares to jump 16%.
Today’s earnings cheer offered some support to London’s top flight at a time when risk appetite is fragile due to the uncertainty caused by US tariffs.
Tech jitters in the wake of Nvidia results also contributed to the poor sentiment as the S&P 500 last night closed 1.6% lower and the Nasdaq slumped 2.8%.
Tokyo’s Nikkei 225 finished 2.9% lower and the Hang Seng index reversed 3.3%.
In contrast, the FTSE 100 index stood 8.43 points higher at 8764.64. This compared with falls of about 0.4% in Europe and a 0.5% decline for the FTSE 250 index.
Among the top flight’s biggest fallers, Nvidia backer Scottish Mortgage Investment Trust dropped 29p to 1036.5p and Polar Capital Technology Trust weakened 7.5p to 333.5p.
Morgan Advanced Materials was the worst performing stock in the FTSE 250 index, sliding 22% or 56.2p to 199.8p after forecasting a mid-single digit decline in revenues in 2025.
The maker of advanced carbon and ceramics materials for a range of industries, said: “Demand in a number of our end-markets is uncertain.”
Bitcoin slide continues, down a quarter on January peak
09:25 , Graeme EvansBitcoin has fallen below $80,000 after President Trump’s latest tariff threats triggered a fresh flight from risk.
It is down by almost a quarter since a peak of $104,000 at the end of January, when demand was boosted by hopes of crypto supportive regulation in the US.
The souring of sentiment comes as investors worry about the global economic impact of Trump’s plans to impose tariffs on Canada and Mexico from next week.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Crypto euphoria is so highly entwined with broad investor enthusiasm that when it’s dented there is nowhere to hide, with coins and tokens falling in tandem.”
Morgan shares slide on gloomy industrial outlook
09:01 , Graeme EvansThe shares of Morgan Advanced Materials have slumped 19% in the FTSE 250 index after its annual results included a downbeat assessment of 2025 prospects.
The maker of advanced carbon and ceramics materials for a range of industries, said: “Demand in a number of our end-markets is uncertain.”
Morgan’s current outlook for revenues in 2025 points to a mid single-digit organic decline and assumes no recovery in the second half.
The company’s simplification programme has been accelerated given the weaker demand, which should underpin a return to a 12.5% margin during 2025. It recorded 11.7% in 2024 as operating profit rose 6.7% to £128.4 million
Revenues for 2024 were £1.1 billion, down 1.3% on 2023 amid declining and low order levels in European and Chinese industrial markets and a slowing in the United States.
The company also reported lower growth in semiconductors, where demand for its products used in silicon carbide power semiconductor production fell due to a lower growth rate in global electric vehicles sales.
Shares fell 49.3p to a five-year low of 206.7p.
FTSE 100 lower amid global sell-off, IAG shares up 4%
08:18 , Graeme EvansThe FTSE 100 index is 0.4% or 32.88 points lower at 8723.33, a robust showing given the scale of earlier losses for Asia and US markets.
The prospect of next week’s US tariffs on Canada, Mexico and China and tech sector jitters in the wake of Nvidia results meant the S&P 500 fell 1.6% and the Nasdaq slumped 2.8%.
Tokyo’s Nikkei 225 closed 2.9% lower and the Hang Seng index reversed 3.3%.
British Airways owner IAG rose 4% or 12p to 350.7p, extending its recent strong performance after annual results included plans to buy back shares worth one billion euros.
Among other blue-chip companies reporting today, the shares of education publisher Pearson and engineering group IMI lifted 3% and processing equipment firm Weir rose 1%. Rightmove shares were slightly higher.
House price growth continues ahead of stamp duty volatility
07:57 , Graeme EvansThe price of a typical UK home rose by 3.9% in the year to February, building society Nationwide said today.
This compares with a rate of 4.1% in January after prices increased by 0.4% month on month in February
The sixth consecutive monthly gain meant the average price recorded by the building society rose to £270,493.
Chief economist Robert Gardner said housing market activity has been resilient in recent months, despite ongoing affordability challenges.
He added that transactions rose 14% in the second half of the year, although for 2024 as a whole the figure is 6% below the levels prevailing before the pandemic.
Gardner said: “Looking ahead, the changes to stamp duty at the start of April are likely to generate volatility in transactions in the near term, as buyers bring forward their purchases to avoid the additional tax.
“This will likely lead to a jump in transactions in March, and a corresponding period of weakness in the following months, as occurred in the wake of previous stamp duty changes.”
Rightmove revenues up 7%, forecasts 2025 growth
07:34 , Graeme EvansRightmove has posted annual results showing a 7% rise in revenues to £389.9 million and underlying operating profit 4% higher at £273.9 million,
Average revenue per advertiser rose £93 to £1524 per month, with total membership up 1% to 19,047 after the number of estate agency branches rose 2% and new homes developments fell 1%.
In 2025, Rightmove said it expects revenue growth of 8-10% as it benefits from uptake of its top-end packages.
The group has forecast 1% growth in membership and a rise in average revenue per advertiser of £95 - £105 across estate agency and new homes developers.
Chief executive Johan Svanstrom said: “We have a clear strategy to further digitise the home moving market, powered by the UK’s largest set of property data and insights.
“There is a long runway of opportunity to both broaden and deepen Rightmove’s services on one connected platform, and our team is continuing to drive that momentum in 2025.”
Rightmove said it was the fourth-busiest UK-based digital platform in 2024, behind the BBC, digital publisher Reach and the government’s website.
IAG hails “world-class” returns, unveils new buyback
07:17 , Graeme EvansBritish Airways and Iberia owner IAG today reported a 27% rise in operating profit to 4.4 billion euros (£3.6 billion) amid strong demand across its core markets.
Revenues rose 9% to 32.1 billion euros (£26.5 billion), including growth of 11.4% in the final quarter of the year.
Chief executive Luis Gallego said: “We are delivering world-class margins and returns, in line with the targets we set out to the market just over a year ago.”
The group, whose shares have more than doubled in the past year, has announced a final dividend of six euro cents a share, taking the total outlay for the year to 435 million euros (£359 million).
IAG also intends to return up to a further one billion euros of excess capital to shareholders, adding to the $350 million buyback announced in November.
FTSE 100 seen lower amid US weakness, Bitcoin below $80,000
07:02 , Graeme EvansA poor finish to last night’s Wall Street session means the FTSE 100 index is set to open 0.7% or about 65 points lower.
Tariffs and inflation uncertainty left the S&P 500 index 1.6% lower and the Nasdaq down by 2.8%, while the Dow Jones Industrial Average reversed 0.5%.
Big fallers included Nvidia, which dropped 8% despite the previous evening’s forecast-beating revenues guidance for the current quarter.
The performance put pressure on Asia tech stocks to leave the Nikkei 225 down 3% and the Hang Seng index off more than 3.5%.
The FTSE 100 index outperformed yesterday with a rise of 24.75 points or 0.3%, boosted by a results-day rise of more than 15%.
The pound is at $1.258 while Bitcoin remains under pressure after the cryptocurrency’s price fell below the $80,000 threshold.
