Please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor.

Friday preview: Silver lining for UK retail sales, Segro results due

By Oliver Haill

Date: Thursday 15 Feb 2018

LONDON (ShareCast) - (ShareCast News) - Data from the Office for National Statistics is unlikely to lift the dark clouds over UK retail but a better month is expected and could prove a thin ray of sunshine.
Retail sales fell by over 1% in December, as the real wage squeeze continued to weigh on spending, even over the festive season.

"That said," noted HSBC, "January saw a four-point rise in consumer confidence from December's post-referendum low. Against this backdrop, and given the sizeable fall in December, we expect a small rise in volumes in this January reading."

The consensus forecast is expected to show a 0.5% month-on-month gain after the 1.5% fall the month before.

Together with the favourable base effect should leave the annual pace of growth at around 2.5%.

"However, looking ahead," said analysts at Daiwa, "we continue to expect the downward trend in retail sales growth to be maintained at least for a while, given that real wage growth is likely to remain absent and consumer sentiment is set to remain subdued."

Property developer Segro will release its full year results, following a solid third quarter trading update where 36.4m of total space had been contracted in the first nine months of 2017, which was 3% ahead of strong results a year earlier.

New leases in the UK were being signed 15% ahead of prior levels while vacancy fell to 4.1% from 5.5%, while some 313,000 square metres of development was delivered, generating 12m of rent, including the 156,000sq m fulfilment centre for Amazon in Rome.

UBS analysts forecast EPRA net asset value per share of 533p driven by operational results and 8.7% like-for-like revaluation, of which 3.6% from the second half of the year, leading to recurring earnings per share of 19.6p and a dividend of 16.8p per share.

"We expect an upbeat statement as we see continued momentum driven by e-commerce related tailwinds, driving both occupier demand for space and investor demand for assets. We look for a development pipeline update."

The Swiss bank's analysts were also look for some news on leasing progress - such as further details on Ikea's pre-lease of a 50,000 square metre warehouse at Port de Gennevilliers in France.

Friday February 16

Consort Medical, Fletcher King, Solid State

Housing Starts (US) (13:30)
Import and Export Price Indices (US) (13:30)
Wholesale Price Index (GER) (07:00)


Victrex plc

Autins Group, Baring Emerging Europe, CYBG , Dunedin Smaller Companies Inv Trust, Shaftesbury, Third Point Offshore Investors Limited, Third Point Offshore Investors Ltd. GBP Shares, Tracsis, TUI AG Reg Shs (DI), Victrex plc