The FTSE Finish Line: February 25 - 2025
Patrick Munnelly, Partner: Market Strategy, Tickmill Group
The UK's main stock indexes rose on Tuesday, supported by major financial stocks such as banks, while shares of Unilever faced challenges following the unexpected departure of its CEO. The leading FTSE 100 index increased by 0.4%, set to break a five-day streak of losses. Positively, the banking index increased by 2% to reach its highest point since 2008, following a nearly 1% decline in the previous session, with major player HSBC boosting by 2.3%. Speaking on Monday, Swati Dhingra, a member of the BoE Monetary Policy Committee, noted that the central bank does not have a unanimous agreement on the pace at which interest rates should be lowered, though there is a collective understanding to describe the approach as "gradual." On a global scale, a U.S. Personal Consumption Expenditure index report is anticipated on Friday, which is a key indicator for assessing the Federal Reserve's approach to interest rates.
Single Stock Stories & Broker Updates:
Unilever's stock drops 3.4%, the lowest since July 2024, after CEO Hein Schumacher resigns after less than two years. CFO Fernando Fernandez will take over, with Srinivas Phatak as acting CFO. The company maintains its 2025 and medium-term forecasts. ULVR is down 1% YTD.
The Georgian bank Lion Finance Group's London operations saw an 11.7% increase, reaching a historical high of 5,930. At 0.1%, the action is the biggest percentage gainer in the FTSE mid-cap index. During the fourth quarter, net interest income increased by 55.2% to 663.7 million GEL ($238.31 million), while profits before taxes increased by 51.5%. An additional program for 107.7 million GEL members to recommend and cancel actions was approved. A final dividend of 5.62 GEL per action is suggested for 2024. The action decreased by 18.5% in 2024.
Shares of Unite Group rise 2.3% to 876p, among FTSE 100 top gainers (+0.08%). The company reports 8.2% rental growth for 2024/25, up from 7.4% for 2023/24. Targets a 2025 Total Accounting Return of 8-10%, with a 2024 TAR of 9.6%. Aiming for 97-98% occupancy and 4-5% rental growth in 2025/26. CEO Joe Lister highlights a strong 2025 outlook due to rising demand and supportive policies for international students. Forecasting mid-single-digit earnings growth driven by performance and project completions. Unite stock is down ~22.75% in 2024.
B&M drops 2.18% to 278.60p, set for a second straight loss after issuing a profit warning amid uncertain economic conditions. CEO Alex Russo will retire by April-end after two and a half years. Goldman Sachs downgrades to "neutral" from "buy," lowering price target to 310p from 430p, citing weaker demand from low-income consumers and increased competition. At least seven brokerages have cut their price targets; stock rated "buy" on average with a median target of 487.50p. YTD, B&M is down ~20%.
Smith+Nephew's shares rose ~10%, their highest since October. The medical products maker surpassed analysts' sales and profit expectations, driven by a recovery in its U.S. knee and hip implant business and cost cuts, despite weak demand from China. Revenue for the year ending December 31 was $5.81 billion, with trading profit of $1.05 billion, compared to analysts' forecasts of $5.78 billion and $1.03 billion, respectively. The company expects a 5% revenue increase in 2025, outperforming analysts' anticipated 4.8% growth. In 2024, SN shares fell ~8%.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 8400
Primary support 8400
Below 8400 opens 8225
Primary objective 8839
Daily VWAP Bearish
Weekly VWAP Bullish
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!