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Research Market strategy
by Swissquote Analysts
Morning News

Remy Cointreau: 1H FY 2020 Net Profit Rose on Divestments

Topic of the day

Remy Cointreau SA (RCO.FR) said Thursday that net profit in the first half of the fiscal year increased, buoyed by proceeds from disposals. The French drink maker made a profit of 90.5 million euros ($99.4 million) for the six months ended Sept. 30, up from EUR87.5 million the year before, on sales that fell 0.6% to EUR523.9 million. Remy Cointreau said net proceeds from the sale of its subsidiaries in the Czech Republic and Slovakia totaled EUR6.3 million. When excluding nonrecurring items, net profit was down 5.6% to EUR84.6 million. Current operating profit was broadly flat on the year before at EUR138.3 million, as its group brands growth was offset by partner brands, as well as usual volatility in holding costs. The Paris-listed company said that for the fiscal year, it expects slight organic growth in current operating profit for its group brands, while the figure is expected to stay stable at the group level. It backed its medium-term guidance.

Swiss stocks

After its latest rally, the SMI barely moved all day Thursday, closing unchanged on 10,529 points. Turnover slumped to 23.55 million shares (Wed: 40.59 million) with US markets closed for Thanksgiving. No momentum came from the news that Swiss gross domestic product rose in the third quarter by 0.4 percent quarter-on-quarter and by 1.1 percent year-on-year, thus exceeding expectations. But overall, the economic slowdown was confirmed, the Swiss State Secretariat for Economic Affairs said. Defensive heavyweights Novartis and Roche each rose 0.3 percent. China-reliant luxury stocks Swatch fell 0.1 percent and Richemont 0.4 percent, dragged down by China’s disgruntlement after US President Donald Trump signed laws supporting the democratic movement in Hong Kong, which market participants fear this hamper the ongoing US-China trade talks. Outside the SMI, Straumann surged 1.5 percent to CHF 957 after analysts raised their target to CHF 1,050 and confirmed their “buy” recommendation.

International markets

Europe

Yesterday, the mayor European markets finished lower. The Dax was down 0.31% to 13,245.58 in Germany, while London's FTSE lost 0.18% to 7,416.43 and the CAC 40 sank 0.24% to 5,912.72 in Paris. British consumer confidence remained subdued in November as the U.K. awaits the outcome of its third general election in four years, while Brexit continues to dominate the nation's politics and weigh on the economy. An index of U.K. consumer confidence gathered by market-research firm GfK was steady at minus 14 in November, unchanged from the previous month. There were signs, however, that the public was anticipating a post-election pickup in the economy, the German company said, as a subindex measuring confidence in the economy over the next year rose three points. Telefonica's action plan released late Wednesday "appears to be a wise one", says CreditSights. Telefonica (+1,2%) announced a major strategic repositioning geographically, by limiting exposure to LatAm markets, with the exception of Brazil. E.ON SE (EOAN.XE) said Thursday that it plans to invest 110 million euros ($121.1 million) to build a biomass power plant at UPM-Kymmene Oyj's (UPM.HE) paper-mill site in western Germany.The German utility said the plant, which is designed to have an electrical output of 20 megawatts and a thermal firing capacity of 87 megawatts, will supply heat to the Hurt paper mill and reduce its CO2 footprint. London-listed shares in Providence Resources PLC (PZQA.DB) fell 10,5% after the company said that Total SA (FP.FR) has withdrawn from a joint exploration project offshore Ireland. The Ireland-based oil-and-gas company said the Irish government has approved assigning Total's equity in Frontier exploration license 2/19--which contains the Avalon prospect--to Providence and Sosina Exploration Ltd.

United States

On Thursday, the U.S. stock markets were closed to observe the Thanksgiving holiday.

Asia

In Asia, Hong Kong's Hang Seng fell sharply as investors continued to fret that U.S.-China trade tensions may escalate, while U.S. futures also declined. Worries that President Trump's signing of a bill in support of Hong Kong protesters may affect U.S.-China trade talks are weighing on investor sentiment, a Kiwoom Securities analyst said. South Korea's release of weaker-than-expected October industrial output data also adds to the downbeat sentiment, as it points to shrinking production and demand for cars and electronics parts.

Bonds

Treasury yields edged higher in Asia, but bond trading will likely remain subdued with the U.S. bond market due to close early Friday. The German ten-year Bund's yield was -0.360%, compared to
-0.370% on Wednesday.

Analysis

UBS lowers the Jeronimo Martins to Neutral (Buy) – 15,50 (16) EUR
UBS rises Stabilus to Buy (Neutral) – Ziel 68 (45) EUR
Equita rises the Enel target to 7% auf 7,50 EUR – Buy


Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.

 
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