CWD.L Share News (CWD)

LONDON (Alliance News) - It was a slow trading day on Thursday with US markets shut for Thanksgiving and stocks in London closing mixed, though shares in estate agent Countrywide ended as the worst performer in the FTSE 250 after it gave a bleak outlook for house sales.

The FTSE 100 fluctuated between gains and losses throughout the day and closed up 0.2%, or 11.49 points, at 6,829.20. Volumes in London's blue-chip index on Thursday was around half of the daily volumes seen on the other days this week.

The FTSE 250 closed down 0.2%, or 31.90 points, at 17,590.62, and the AIM All-Share ended up 0.4%, or 3.35 points, at 818.48.

The BATS UK 100 index ended up 0.1% at 11,541.21, the BATS 250 ended slightly lower at 15,948.80 and the BATS Small Companies ended up 0.3% at 10,972.57.

In Europe, the French CAC 40 and the DAX 30 both closed up 0.3%.

"The entire afternoon has had a sense of children playing about without adult supervision, with this especially clear in currency markets; the dollar is quiet for now, but all that could change by next week," said Chris Beauchamp, chief market analyst at IG, referring to the lack of direction in the absence of US investors.

The pound edged higher versus the dollar and, at the London stock market close, sterling traded the greenback at USD1.2461 versus USD1.2429 at the close Wednesday. The euro was quoted at USD1.0572 at the close Thursday, slightly higher than the USD1.0548 seen on Wednesday.

Countrywide said it expects property sale volumes for 2016 to be 6.0% below 2015, and they are likely to fall further in 2017.

Countrywide said transactional activity in the UK residential property market has remained challenging since the end of its first half on June 30. It cited a combination of changes in UK stamp duty and the European Union referendum outcome as the reason why transaction levels were currently running below 2015.

Countrywide expects transaction volume declines in both 2016 and 2017. The slowdown in activity is "clearly evident" from the closing pipelines of Countrywide's Retail and London businesses, the group said. At the end of September, pipelines were down 16% and 26%, respectively.

The forecast followed on from the Autumn Statement on Wednesday, when UK Chancellor of the Exchequer Philip Hammond confirmed speculation that letting agent fees for tenants on private rented sector properties will be banned.

The stock closed down 13% at 168.91p, having earlier setting a new record low of 165.90p. Countrywide listed in London in March 2013 at 350p.

Direct Line Insurance Group was the one of best performer in the FTSE 100, up 2.7%, after it was upgraded to Overweight from Equal Weight by Morgan Stanley.

"Direct Line's investment in growing its own-brand policies should lead to higher return-on-equity and greater customer retention," said Morgan Stanley analyst Janet Demir. "Direct Line's own brands – Direct Line and [motor insurance] Churchill – are performing well and continue to be positioned as service- rather than price-led."

HSS Hire Group said trading in the fourth quarter will be at the lower end of its expectations, resulting in full-year adjusted earnings before interest, tax and amortisation below the current range of market expectations.

The tool and equipment hire company said given the "scale, complexity and investment" in the operational change being rolled out, it was extending its implementation period through to the first quarter of 2017.

This will impact the group's core Rental and related revenue growth, and cause delays to the optimisation of its remaining network and the reduction of operating costs. This will mean trading in the fourth quarter will be at the lower end of management expectations. The stock closed down 6.1%.

Domino's Pizza Group ended as the best perfomer on the FTSE 250, closing up 3.4%. The pizza delivery company said it is increasing its long-term target for UK store expansion, given the "continued strong new store performance" it has achieved.

The group said it now aims to operate from 1,600 stores in the UK in the long term, expecting to run 950 stores by the end of 2016. According to Domino's, this reflects its "successful" strategy of splitting territories to improve efficiency and service to customers by shortening drive times, which leads to higher sales.

Outside the UK, Domino's has identified opportunities for a total of 400 stores, which will be up from around 100 at the end of 2016.

Helical reported its net rental income grew in its first half, and it made a net gain on the sale and revaluation of its investment portfolio against a background of uncertainty.

The property developer said its net asset value per share rose 3.0% in the six months ended September to 471.00 pence from 456.00p, after Helical's total comprehensive income increased.

Helical said its net rental income rose to GBP24.6 million from GBP20.8 million the prior year, and said its portfolio at the half year reflected passing rents of GBP39.0 million, contracted rents of a further GBP13.0 million and an estimated rental value of GBP78.0 million.

The stock closed as the best performer in the FTSE All-Share, up 10%.

Gold prices remained weak on Thursday, trading at USD1,186.00 an ounce at the European equities close on Thursday, versus USD1,187.16 an ounce at the same time on Wednesday.

Brent oil remained largely unchanged, trading at USD48.93 a barrel on Thursday, compared with USD48.91 on Wednesday.

In the economic calendar for Friday, the main event is the second estimate of third quarter UK gross domestic product at 0930 GMT. The quarterly GDP figure is expected to show growth of 0.5%, the same as the first estimate, down from 0.7% in the second quarter.

Elsewhere, Nationwide housing prices index for the UK is at 0700 GMT and the Confederation of British Industry's Distributive Trades Survey is at 1100 GMT. US wholesale inventories and goods trade balances are at 1330 GMT, while Markit services and composite purchasing managers' index for the US are at 1445 GMT.

Wall Street will re-open on Friday for a half day, with the trading session finishing at 1300 New York time.

In the UK corporate calendar, water utility and waste management company Pennon Group issues interim results, as does car dealer Caffyns and medical diagnostic products company Immunodiagnostic Systems Holdings. Meat and dairy producer Zambeef Products reports full-year results.

By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1

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