The FTSE 100 Index has pulled back in recent weeks, falling from a July high of 10,986 to its current level of 10,606. October will test this retreat as several major companies publish their results. This article looks at some of the top Footsie shares to watch in October, including Lloyds, Shell, and Barclays.
Lloyds Bank to publish its earnings
Lloyds Bank, the biggest mortgage lender in the UK, will be in the spotlight in October as it releases its earnings. It has dropped by nearly 10% from its highest level this year.
The stock will react to its earnings, which come out on October 29. These numbers will provide more hints on its business after the recently launched Accelerate 2030, which focuses on three pillars. These pillars include growing its core, simplifying its business, and boosting its innovation and diversity.
The most recent results showed that Lloyds made a net income of £9.7 billion in the first half of the year, up by 9% from the same period last year. Its profit after tax rose by 23% to £3.1 billion.
A strong quarterly earnings report will likely provide a catalyst for the stock to rebound. The risk, however, as we wrote here,is the fact that it has formed a rising wedge pattern, pointing to more downside in the near term.
Barclays earnings to shed light on trading and investment banking
Barclays stock price has slumped in the past few weeks, moving from a high of 532p in July to the current 457p. Like Lloyds, the stock will be in focus as it releases its financial results.
Barclays’ numbers will be watched because of its trading and investment banking division. Its trading division (FICC) has benefited from the ongoing volatility in the market under President Donald Trump.
At the same time, its investment banking business is booming as mergers and acquisitions (M&A) and IPOs. Dealogic data shows that Barclays has been an equity capital markets (ECM) bookrunner in deals valued at over $30 billion, up from $17 billion last year. Its debt capital markets (DCM) value stands at over $337 billion, up from $304 billion last year.
Shell (SHEL)
Shell stock has slipped by over 3% from its highest point this year. It is still one of the best performers in the FTSE 100 Index after soaring by over 40% this year.
Shell has benefited from the ongoing US-Iran, Saudi Arabia-Houthi, and Russia-Ukraine wars that have pushed crude oil prices higher. Brent and the West Texas Intermediate benchmarks have already jumped to over $90 this year.
The soaring oil prices pushed its revenue and profits much higher. It reported adjusted earnings of $9.8 billion in the second quarter, which helped it to start another $3 billion share buyback. Its earnings was much higher than the $6.9 billion it made in the first quarter.
Shell shares will react to the upcoming earnings report and any new information on the ongoing US-Iran conflict. An escalation, including an October Surprise from Iran would boost Shell shares.
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