Aviva, Morrisons and Countrywide

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“The FTSE100 opened in negative territory as investors mulled measures outlined in Chancellor Philip Hammond’s Budget and looked ahead to the European Central Bank's monetary policy meeting at 12.30pm,” says AJ Bell Investment Director Russ Mould.

“Insurance giant Aviva topped the blue-chip board in early trading after operating profits and dividends rose by 12%. The group has taken a hit from the change in the Ogden discount which is used to calculate personal injury claims and after-tax profits were down by 22%. But the overall trajectory is up with the prospect of more to come. Aviva is planning a capital return to shareholders and debt reduction this year and will invest further to grow its businesses. Aviva’s shares were up by more than 5.7%.

Morrisons saw full-year pre-tax profits rise by nearly 50% to £325m but investors were more focused on the supermarket group’s warning about the combined impact of a weaker sterling, depreciation and pension costs. Morrisons is confident its turnaround will continue despite uncertainties ahead, especially around the impact on imported food prices if sterling stays at lower levels as this and the expected increase in depreciation and pension costs have been factored into its plans. Morrisons was down by over 4.9%.

“Property services group Countrywide’s shares fell after pre-tax profits slumped and it unveiled plans to place up to 21,610,467 new ordinary shares to give it additional financial flexibility. Uncertainty following the EU referendum result and stamp duty changes have had a significant impact on the property market and Countrywide will use proceeds from the placing to accelerate its digital rollout and unlock further cost savings. Countrywide’s shares were down by more than 8.1% in early trading” 

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