Cookie Policy

We use cookies on our website and have placed these on your computer. By continuing to use our website you consent to this. For more information, including how to change your cookie settings and to disable our non-essential Google Analytics cookies, please refer to our Cookie Policy. If you do not wish to be reminded of this on each visit, please use the close button.

Monthly market outlook: March 2018

March 2018


Tags: Macro Economics

Tom Sieber from Shares Magazine provides his monthly market outlook for the month of March.

Dignity

Funerals provider Dignity (DTY) has work to do to get investors back on side when it reports its 2017 numbers on 14 March. In January, the company announced a radical overhaul of its pricing structure, which led to significant downgrades for profit expectations. In the face of mounting competition the company decided to hold the average price of its traditional full service funeral at £3,800 and to reduce the cost of its simple funeral from an average of £2,700 to £1,995 (£1,695 in Scotland).

These new pricing points are in line with those of the Co-Op. Dignity currently believes this will increase the proportion of simple funerals it carries out from 7% in 2017 to 20% to 2018, creating a double whammy effect. Essentially, the pricing amendments mean Dignity’s debt position compared to its forecast earnings is now at a much higher level, leading some investors to worry about its ability to
service the debt.

Trade now

 

Morrisons

Supermarket Morrisons (MRW) is scheduled to release its full year results on 14 March. The company proved a Christmas winner, like-for-like sales surging 3.7% higher in the six weeks to 7 January 2018. The market will be looking for signals thatthis momentum has been maintained following the conclusion of the festive period.
Management may also be keen to highlight an emerging opportunity in wholesaling. The company already has a tie-up with Amazon, as part of the US firm’s incursion into UK online grocery delivery, and recently began supplying McColl’s (MCLS) convenience stores with products under the Safeway brand.

Trade now

 

Prudential

On 14 March global insurance business Prudential (PRU) announces its results for the 12 months to 31 December 2017. The company’s recent growth has been driven by developing markets in Asia. Prudential says that ‘by 2020, the spending of the middle class in the Asia-Pacific region is expected to surpass that of the US and Europe combined.’
These trends have led to growing speculation the company might exit its operations in the UK. Just over a year ago the company withdrew entirely from the UK annuities market and, in August 2017, it merged its M&G asset management arm with its other UK businesses to create M&G Prudential. By packaging up these assets it could make them easier to sell. Such a move would allow management to focus on Asian growth opportunities and its US life insurance company, Jackson, which is enjoying strong growth due to supportive demographics across the Atlantic.

Trade now

 

Find out how risky is investing

Read more

Writer: Tom Sieber Tags: Macro Economics

You can start investing today through any of our account options:

Dealing Account

Access a wide range of global investments in this flexible, unrestricted account.

Find out more

Stocks and Shares ISA

Take advantage of tax free investing with our Stocks and Shares ISA today.

Find out more

Self-Invested Personal Pension (SIPP)

From great value to best-in-class, access the SIPP to suit your needs through our extensive network of providers.

Find out more

I've still got questions!

We’re on hand to help at our Customer Experience Centre on 0345 0700 720

Selftrade does not provide investment advice. This article is the authors view and is not the view or opinion of Selftrade and Selftrade accepts no liability for any loss caused as a result of the use of this information. The opinions expressed are those of the author at the time of writing and should not be interpreted as investment advice.

The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance. We do not provide advice or make recommendations about investments. If you have any doubts about the suitability of an investment, you should seek advice from a suitably qualified professional adviser.

In fact, even 61% of confident retired investors say they want more retirement income*.

Get ready for your retirement, with a SIPP from Selftrade.

Open a SIPP Find out more

*Source: LIBF & 7IM, 2018.