The FTSE 100 Index has come under intense pressure in the past few days as global stocks have become highly volatile. It dropped to a low of £9,540, down by over 4% from its highest point this year. This article explores some of the top FTSE 100 stocks to watch this week.
Anglo American is the top FTSE 100 stock to watch
Anglo American stock price has moved into a correction after falling by 10% this year. It remains much higher than the year-to-date low of 1,895p.
The company will be in the spotlight this week because of the latest rumors that BHP has approached the company for a deal, a year after it abandoned its $49 billion offer.
According to Bloomberg, BHP is considering an offer that will be a combination of cash and stock. A potential offer will likely be higher than the $49 billion that Anglo American rejected. It will likely have a a higher cash component.
However, the deal is complicated by the fact that Anglo American has made a bid for Teck Resources, one of the biggest Canadian miners. Shareholders of the two companies are expected to vote on to deal in early December. As such, it is unclear whether BHP’s deal will also include Teck Resources.
The main reason for the ongoing dealmaking is copper, a commodity whose price has surged in the past few years. Teck has some of the biggest reserves in North America, which makes it an attractive buyout target.
Anglo American also has vast copper resources, but also has some less desirable products like coal and nickel. Therefore, the new bid means that the Anglo American share price will likely jump after the market opens.
Kingfisher (KGF)
Kingfisher, the parent company of B&Q, Screwfix, Castorama, and Brico Depot, will be one of the top British companies to watch this week as it releases its trading statement, which will shed color on its operations.
These numbers come at a time when the stock has pulled back in the past few weeks, moving from a high of 320p in October to the current 290p.
Kingfisher’s business has improved substantially in the past few months, which explains why its stock has jumped by 35% from its lowest level this year.
The most recent results showed that the company’s revenue rose to £6.8 billion in the first half of the year, while its operating profit rose to £383 million.
Most of its growth was because of its B&Q and Screwfix businesses in the UK. It also gained market share in key countries like Spain, UK, and Poland.
Most importantly, the company upgraded its full-year guidance, with its profit-before-tax coming in at £540 million. Therefore, the stock will likely rise if the management boosts the guidance.
Easyjet (EZJ)
EasyJet is another top stock to watch as it publishes its full-year results on November 25. These results will come as the company’s stock has plunged by 20% from its highest level this year.
The decline happened when the company published its third-quarter financial results, which showed that higher fuel prices and the industrial action in France impacted its business.
Still, the company reported a solid profit before tax of £286 million, up by £50 million from the same period last year. This week’s report will likely provide more color on its business in the last quarter and a guidance on what to expect in the near term.
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