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26-30 NOVEMBER IG THE REVIEW OUR REGULAR LOOK AT THE MARKETS MAKING THE HEADLINES, USING INFORMATION AND CLIENT SENTIMENT DATA FROM OUR INSIGHT CENTRE. BY: CHRIS BEAUCHAMP IG MARKET ANALYST THIS WEEK: Aberdeen Asset Management's results confirmed how well the company has done during the course of the year, while banknote printer De La Rue saw an improvement in trading, even if there were difficult times ahead. United Utilities was among several water firms that provided an update this week, with another boost to its already healthy dividend. MARKET OVERVIEW THE WEEK BEGAN WITH MARKETS ON SOMETHING OF A HIGH, THANKS TO SOME POSITIVE, IF VAGUE, COMMENTS IN THE US FROM REPUBLICAN POLITICIANS WILLING TO DISCUSS A COMPROMISE ON TAX AND SPENDING. With December approaching, the prospects for additional gains as the traditional year-end rally gets underway cannot be ruled out. 40% of IG clients with open positions in our Wall Street market expect the price to fall 60% LONG 60% expect it to rise There was progress of a sort on Greece in the early part of the week. The eurozone and the IMF were able to reach an agreement on the target level for Greek debt by the year 2020, allowing the payment of the next tranche of aid money. An early election in Catalonia, widely viewed as a referendum on independence, saw separatist parties gain ground, but the reaction from the markets was fairly muted. 33% of IG clients with open positions in our EUR/USD market expect the price to rise 67% expect it to fall 61% SHORT UNDER THE SPOTLIGHT ABERDEEN ASSET MANAGEMENT Aberdeen's full-year results, published on Monday, confirmed why its share price has enjoyed such a strong run this year. • Pre-tax profits up 15% • Assets under management increased to £187bn • Company promoted to FTSE 100 index for first time • Dividend up 35% to full-year payout of 11.5p 338.09 320.00 300.00 280.00 260.00 240.00 220.00 200.00 Share price in 12 months to 28 November 2012 180.00 PERHAPS UNSURPRISINGLY, IG CLIENTS ARE FIRM FANS: 9% of IG clients with open positions in this market expect the price to fall 91% 91% of IG clients with open positions in this market expect the price to rise LONG 51-250 AAAAA IG clients currently have an open position on Aberdeen Asset Management UNDER THE SPOTLIGHT DE LA RUE De La Rue released its interim results on Tuesday. Unlike Aberdeen and its steady upward march, the banknote printer has had a fairly choppy year. 1060.0 1040.0 1020.0 1000.0 980.0 960.0 940.0 920.0 900.0 880.0 Share price since beginning of financial year 2012-13 860.0 Shares have made decent gains, but it has not been an untroubled progress. However, revenue and earnings were still higher for its first half, and a number of major orders would help trading in the second. The future looks brighter for De La Rue, with operating profit expected to surpass £100 million next year. NET INCOME 400M 363.OM 300M 200M 100M 2007 2008 2009 2010 2011 2012 IG CLIENTS EXPECT FURTHER GOOD NEWS: 9% of IG clients with open positions in this market expect the price to fall 91% 91% of IG clients with open positions in this market expect the price to rise LONG UNDER THE SPOTLIGHT UNITED UTILITIES The utilities giant announced its half-year results on Wednesday, revealing steady progress on a number of levels. I The challenge facing all water firms at present is how to 720.0 replace ageing Victorian infrastructure without putting 700.0 too much of a dent in their profits. United Utilities appears to be walking this tightrope rather well, with pre-tax profit still rising despite an increase in expenditure. 680.0 660.0 Share price since last earnings announcement (27 July 2012) 640.0 In common with other FTSE 100 companies, United lifted its dividend, in this case by over 7%. The steady nature of these payments has meant that utility firms like United have become viewed as 'safe havens' in difficult times. BROKER RATINGS STRONG BUY 3 BROKERS 20 BUY 4 HOLD 8 AVERAGE RATING SELL HOLD STRONG SELL IG CLIENTS' SENTIMENT DEMONSTRATES CONFIDENCE: 5% of IG clients with open positions in this market expect the price to fall 95% of IG clients with open positions in this market expect the price to rise 95% LONG THE WEEK АНЕAD AS THE YEAR ENTERS ITS FINAL MONTH, US FISCAL CLIFF DISCUSSIONS REMAIN THE FOCUS OF ATTENTION, WITH INVESTORS HOPING THAT THE PROBLEMS WILL BE RESOLVED SWIFTLY AND WITH MINIMAL FUSS. On the reporting calendar, a varied group of companies, including TUI Travel, account- ancy software firm Sage, residential property company Berkeley and transport group Stagecoach. CURRENT CLIENT SENTIMENT: TUI TRAVEL (TUI) SAGE GROUP STAGECOACH BERKELEY GROUP (SGE) (SGC) (BKG) 77% LONG 90% LONG 92% 90% LONG LONG Spread bets are leveraged products. Spread betting may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved. Source of data: IG insight and analysis centre. Data correct 2.30pm 28 November 2012. FIND OUT MORE ABOUT OUR INSIGHT CENTRE IG provides an execution-only service. The material on this website does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. This communication must not be reproduced or further distributed.


shared by leeleck84 on Jan 29
A fortnightly graphic illustrating which markets have been the top movers and shakers, including further insight into what the market might do and what others have been trading on.


Lee Leckenby


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