Index FTSE 100 News And Technical Analysis – 07 February 2023
07 Feb 2023
FTSE 100 pushes higher, profits flow at BP and mortgage rates fall.
FTSE 100makes strong start, up 34 points
BP (LON: BP) posts record profits, new buy-back
House prices stabiles in January – Halifax
FTSE 100 is expected to edge higher at the open with results from oil major BP PLC (LSE: BP.) the early focus in London.
FTSE 100 pushed higher in early exchanges boosted by record profits and plans for a further hefty share buy-back from oil major, BP PLC (LSE: BP.).
At 8.15 am London’s blue-chip index was up 29 points although the FTSE 250 dipped 50 points to 20,360.
BP took center stage with shares up 3.7% after it reported record annual profits, raised its fourth-quarter dividend by 10%, launched a US$2.75bn share buy-back and raised earnings targets out to 2030.
“Performing while transforming,” said CEO, Bernard Looney.
Joshua Warner, market analyst at City Index said: “Shareholders will welcome the US$2.75bn share buyback considering this was significantly larger than expected, as well as the 10% dividend increase.”
“Those increased returns came after BP generated significantly more cash than anticipated, allowing it to spray investors with cash and reduce its net debt for an eleventh consecutive quarter.”
But Morgan Advanced Materials plc (LSE: MGAM) slumped 7.3% as it warned it expects around £8mln to £12mln in exceptional costs from the cyber-attack it suffered last month.
As a result of the disruption, Morgan said it expects adjusted operating profit for 2023 to be around 10% to 15% below previous expectations.
On the upside, Morgan said it expects its 2022 annual trading performance to be slightly ahead of market expectations.
BP PLC has given investors plenty of ood for thought today with results and a strategic update to plough through.
The oil giant delivered record annual profits, an increased dividend, a further hefty share buy-back and raised earnings targets out to 2030.
“Performing while transforming” was how chief executive, Bernard Looney described it all.
But it wasn’t all good news with fourth-quarter underlying replacement cost profits of US$4.8bn, below City expectations of US$5bn, and down from US$8.2bn in the third quarter.
FTSE 100 TECHNICAL ANALYSIS
DAILY CHART:
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading above all SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
FTSE 100 immediate resistance is at 7895.5 & its immediate support level is 7845.9
HOW TO TRADE FTSE 100 IN THIS WEEK
FTSE 100 is trading in an up channel; it will continue to trade upside until any trend reversal so, remain bullish on it.