UK stock alert

UK

CLOSING UPDATE: London Stock Exchange increases 1.5%, led Financial services sector higher 19 January 2018 18:07 GMT

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

London Stock Exchange, the largest financial services company by market capitalisation in the United Kingdom, has increased 1.5% to trade at GBX3,751.0 vs. the Financial services sector which strengthened 66.5 points (or 0.4%) to 18,627.8. Representing a weighting of about 12.9% of the sector, the stock accounted for 54.2% of today's gain. Trading volume was 5.4 times average at the end of the day. Compared with the FTSE 100 Index which rose 29.8 points (or 0.4%) in the day, this represented a relative price increase of 1.1%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Return on Equity 9.8% [1.9%]

+ Return on Capital Employed 21.1% [4.0%]

Bullish Signals:

+ Net profit margin has averaged 16.3% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 9.8% is better than sector average of 1.9%.

Note

London Stock Exchange today is at a discount of 7.8% to the 12-month high of GBX4,069.0 on 01 Sep, 2017. It is at a premium of 28.2% to the 12-month low of GBX2,926.19 on 27 Feb, 2017.

Bearish Signals:

The negative 20.69 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

In the United Kingdom market, the stock's relative price strength percentile is falling at 41 for 6 months, 31 for 3 months and 28 for 1 month.

The price decreased 1.0% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 7.9 [0.9]

Dividend yield of 1.2% [3.1%]

TODAY'S ALERT

Afternoon Alert: London Stock Exchange inches higher, resistance at 12-day EMA

19 January 2018 14:42 GMT

London Stock Exchange Group PLC (L:LSE) has increased 0.3% but fell short of the 12-day Exponential Moving Average [EMA] of GBX3,708.04.

London Stock Exchange Group PLC (L:LSE; LON:LSE; LN:LSE)

ISIN: GB00B0SWJX34

PermID: 4298007752

Source: www.BuySellSignals.com