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News & Tips: BT, Fuller, Smith & Turner, IAG & more

Equities are selling off
January 30, 2015

Equities have dipped in early trading despite a bounce on Wall St overnight. Click here for The Trader Nicole Elliott’s latest take on the global markets.

IC TIP UPDATES:

Third quarter results from BT Group (BT.A) showed a 3 per cent dip in revenues by a 12 per cent improvement in reported profits before tax to £694m. Profits for the nine months to December were up 15 per cent to £1.8bn. The group has also updated on its pension fund deficit, which now stands at £7bn, and management has agreed a funding plan which will see it put £2bn into the fund over the next three years, with £1.5bn to be paid this year. Buy.

Pubs and brewing group Fuller, Smith & Turner (FSTA) has updated on trading for the first 43 weeks of its financial year during which like for like sales have risen by 6.8 per cent in managed pubs and hotels and 4 per cent in the tenanted division. Beer volumes have risen by 4 per cent. We keep our buy rating.

Morgan Advanced Materials (MGAM) has announced the appointment of Pete Raby as its new chief executive, he joins from Cobham where he was president of Communications and Connectivity. We maintain our buy recommendation.

Sell recommendation Shanks (SKS) says it has traded in line with expectations since November’s results and conditions in its markets remain mixed although there are signs of some improvement in the Benelux region.

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International Consolidated Airlines (IAG) announces that Qatar Airways, which is a member of the code sharing oneworld alliance, has acquired a 9.99 per cent stake in the airline.

Charles Stanley (CAY) reports that after nine months of its financial year total funds under management were up 2 per cent at £20.5bn. In the third quarter all divisions improved their performance apart from Securities, which was hit by lower corporate finance activity.

LSL Property Services (LSL) has renewed a surveying and valuation contract with Santander.