The FTSE 100 Index remained steady this month, mirroring the performance of other global indices, such as the Nasdaq 100 and S&P 500. The Footsie jumped to a high of £8,972, a few points below the year-to-date high of £9.015, up by nearly 20% above the year-to-date low.
This index will be in the spotlight in the coming week as some of the biggest constituents publish their financial results. It will also react to earnings announcements from some of the top American companies, such as Google and Tesla.
Lloyds Bank (LLOY)
Lloyds Bank, the most popular stock in the FTSE 100 Index, will be the top company to watch next week as it publishes its second-quarter results. These numbers will come as the stock hovers near its multi-decade high after surging by over 54% from its lowest point in January.
Analysts expect the results to show that its net interest income (NII) jumped to £3.36 billion in the third quarter from the £3.29 billion it made in the first quarter.
They also expect its net income to be £4.5 billion, with a profit for the period of £1.2 billion. The closely watched CET-1 ratio is expected to remain at 13.5%, with management anticipating it will drop to 13% over time.
There are odds that the Lloyds share price will bounce back, as we wrote here. As the chart below shows, it has formed a bullish flag pattern, one of the most popular bullish continuation signs.
NatWest (NWG)
NatWest, like Lloyds Bank, is one of the biggest UK banks, with over 20 million customers. It owns popular brands like the Royal Bank of Scotland, NatWest, Ulster, Coutts, and Lombard.
It has also been in a strong upward trend this year, reaching a high of 536p, much higher than the year-to-date low of 356p. This rally was because of its strong performance and dividend returns.
Analysts expect that NatWest’s second-quarter NII will be £3.1 billion and its total income will be £3.95 billion. The profit for the period is expected to be £1.34 billion, while the CET-1 ratio is expected to be 13.8%.
Like Lloyds, the NatWest stock price has also formed a bullish flag pattern, indicating further gains are likely. If this happens, the next point to watch will be the year-to-date high of 536p.
Read more: NatWest share price is surging: is it a buy ahead of earnings?
Centrica (CNA)
Centrica is a top energy company in the UK, owning popular brands like British Gas, Bord Gais Energy, Hive, Centrica Business Solutions, and PH Jones.
The Centrica share price has plummeted by over 8.6% from its highest point this year and is now hovering at its lowest level since May 20th. This performance is attributed to recent fluctuations in commodity prices, with oil and natural gas experiencing a decline over the past few weeks.
The most recent results showed that its adjusted EBITDA came in at £2.3 billion, down from £3.5 billion.
Rightmove (RMV)
Rightmove stock price has been in a strong bull run this year, and is hovering at the record high of 790p. This performance is likely confirmation that the company made the right decision in rejecting an offer from Rupert Murdoch’s REA Group.
Rightmove stock price will be in the spotlight as it publishes its financial results next week. These numbers will provide more color on the real estate industry in the UK. Its recent results showed that it was benefiting modestly from lower mortgage rates in the UK.
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