The FTSE Finish Line - May 02 - 2023
FTSE 100 Holiday Weekend Hangover
The FTSE kicked off a holiday shortened trading week in the green, gains were led by banking heavyweight HSBC +3.8%, the upside was supported by a robust earnings report that demonstrated a quarterly profit that had tripled quarter over quarter, exceeding analysts expectations, the rise in income was driven by the elevated rates environment which led the bank to issue a quarterly dividend for the first time since 2019. Home Builder Persimmon has pipped HSBC to the top spot on the day as a modest improvement in housing market data led investors to pile in with the stock gaining over 5%.
BP also announced profits of $5 billion for the the first quarter of 2023 which represents an improvement on last quarters record performance, the business continues to see outperformance from its oil and gas trading units, however, BP also announced a paring in its share buyback programme, reducing the proposed share acquisition schedule to $1.75 billion for the quarter ahead, this led to disappointment amongst investors leading to the stock sliding -8.5% on the session with Shell shedding -4.2% on sector related performance concerns as crude oil prices continue to weaken.
The standout underperformer on the session was educational publisher Pearson Plc with shares slashed by -15%+, the losses came as US online education provider Cheg saw a 40%+ decline in shares on reports that AI tool ChatGPT may eat into the company's revenues as students take advantage of the free alternative, this has led to a sharply negative revaluation of Pearson's prospects.
The weight from losses in BP and Shell weighed on the broader index and Pearsons double digit drop did little to help the general mood as a post holiday hangover has developed through the day, Wall Street is also witnessing a fresh round of selling which is souring risk sentiment further as the FTSE limps into the close with losses of just over 1%.
FTSE Bias: Intraday Bullish Above Bearish below 7750
Primary support is 7635
Primary objective 8030
Below 7750 opens 7706
20 Day VWAP bullish, 5 Day VWAP bearish
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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!