The FTSE Finish Line: April 29 - 2025
Patrick Munnelly, Partner: Market Strategy, Tickmill Group
British stocks rose on Tuesday as investors evaluated corporate earnings, while markets reacted favourably to the U.S. administration's proposed automotive tariff exemptions. The banking sector saw a 2% increase, led by HSBC's 2.5% rise after the bank reported first-quarter profits exceeding expectations and announced a $3 billion share buyback plan. AstraZeneca negatively impacted the blue-chip index, falling 2.7% due to a potential $8 million fine in China for suspected unpaid taxes and quarterly revenue missing analysts' forecasts. This caused the healthcare sector to decline by 1.5%. The energy sector also declined by 2%, with BP shares dropping 4% following a greater-than-expected net profit fall. Separately, the Trump administration is reportedly considering easing new auto tariffs by reducing certain duties on foreign components for U.S.-manufactured vehicles while ensuring tariffs on foreign-made cars do not worsen the situation, according to official statements. Although markets have shown signs of stability due to optimism about a potential U.S.-China trade agreement, ongoing uncertainty in the negotiations keeps investors wary. Meanwhile, in the UK, grocery price inflation rose to 3.8% in April, according to industry data released on Tuesday, adding pressure on consumers already facing rising energy, water, and council tax expenses.
Single Stock Stories & Broker Updates:
Travis Perkins gains 3.6% to 548p, top gainer on FTSE midcap index. Reports 3.7% like-for-like revenue growth at Toolstation in Q1, but total group revenue falls 2.4%. Peel Hunt labels it "an excellent turnaround candidate" as margins improve with a maturing store network, reiterating "buy" with a price target of 750p. Expects the merchanting division to regain earlier profitability. YTD, TPK down ~27.5%.
Shares of HowdenJoinery rise 6.5% to 787p, becoming the top FTSE 100 gainer with its best one-day gain since Feb 29. The company reports a 3% revenue increase for the 16 weeks to April 19 and reaffirms its 2025 outlook. Barclays describes the update as reassuring, and Howden plans to open 20-25 new UK depots and refurbish ~60 older ones. Despite the gains, the stock is down about 7% YTD.
Shares of Associated British Foods dropped 9.8% to 2,020p, marking the largest decline on the FTSE 100 index. The stock faces its biggest one-day percentage fall since September 2024. Primark's parent company reported a 10% decrease in HY adjusted operating profit to £835 million ($1.12 billion) and anticipates a full-year adjusted operating loss of up to £40 million from its sugar business. ABF maintains its "low single-digit" annual growth guidance for Primark but is up about 10% year-to-date.
Shares of AstraZeneca fell 5.2% to 9,987p, being one of the top losers on FTSE 100, which is down 0.03%. The company reported Q1 revenue of $13.6 billion, below the $13.8 billion expectation; however, core EPS of $2.49 surpassed the $2.27 estimate. Ben Kumar from 7IM mentioned that AstraZeneca often meets earnings expectations, describing this as "par." The company may face an $8 million fine over suspected unpaid import taxes in China, related to its drug Enhertu. AstraZeneca reaffirmed its revenue and core EPS guidance for 2025 at CER. The stock is up 0.6% YTD as of the last close.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 8600
Primary support 7500
Below 7800 opens 7648
Primary objective 8300
Daily VWAP Bullish
Weekly VWAP Bullish
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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!