Fashion, building and engineering

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The FTSE 100 started the last trading day before the Easter break in the red, taking its cue from negative overnight performances on Wall Street and in Asia, as commodities came under renewed pressure.

“Investors will find very few crumbs of comfort in fashion retailer Next’s outlook for the coming year,” says AJ Bell Investment Director Russ Mould.

“The group’s improved results and increase in its dividend were outweighed by its warning that this year could be the toughest since the financial crisis of 2008. Uncertainty in the global economy is a major factor but there are also concerns that there may be a cyclical move away from spending on clothing back into areas that suffered the most during the credit crunch.

“Construction and property developer Henry Boot’s shares were up in early trading after the group’s full year pre-tax profits rose by 14% and ahead of market forecasts. All business segments performed well and the group expects further progress this year and beyond.

“Engineering group Renishaw’s shares slumped after it cut its guidance. Revenue last year benefited from a number of large orders in the Far East which have not been repeated to the same extent this year.”

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