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On Thursday the benchmark blue-chip index in the UK once again rolled over ceding early gains to trade in the red by 0.46% heading into the close. The reversal was led by losses in AstraZeneca. AstraZeneca's stock dropped by over 7% in London as its Q4 profit disappointed, despite a positive outlook. The company's Q4 core EPS of $1.45 falls short of estimates of $1.50, according to a company-supplied poll, although its Q4 revenue of $12.02 billion slightly exceeds expectations of $12.01 billion. AstraZeneca expects its total revenue and core EPS to increase by low double-digit to low teens percentages in 2024. Investors were apparently concerned that there have been some disappointments in clinical results, the quality of the pipeline and solid outlook make the mid-teen earnings multiple seem reasonable. The stock has decreased by approximately 1% over the last 12 months as of the last close. Another top percentage loser on the day was SSE's shares fell by 1.6% as its Q3 renewables output was lower than expected, causing concerns about its FY profit. The company attributed the lower production to challenging weather and operational conditions, including 10 named storms. Despite this, SSE maintains its forecast for FY adjusted earnings per share of more than 150 pence. The current valuation reflects investors' need for reassurance about SSE's growth plans and uncertainties related to renewables output.

On the positive side of the ledger DS Smith, a packaging group in the UK, experienced a significant increase in its stock value after confirming that Mondi has shown interest in acquiring the company. DS Smith's shares rose by 11.9% as a result. The company revealed that it has received a preliminary expression of interest from Mondi, indicating that Mondi is considering making an offer, although no formal proposal has been received yet. The deadline for Mondi to either make an offer or withdraw its interest is in March. In contrast, Mondi's shares dropped by 1.5% to 1,360p. Additionally, DS Smith's stock has declined by over 4% in 2023, while Mondi's stock has seen a 9% increase. Smurfit Kappa's London-listed shares rose over 5%, making it the top percentage gainer on the FTSE 100. JPM raised the target price to EUR 44 from EUR 40 and maintained an "overweight" stock rating after Q4 results. They also upgraded 2024 and 2025 EBITDA estimates by 4% and 6%, respectively. Smurfit Kappa's group volumes continued to improve quarter over quarter, turning positive in Q4 compared to the same period last year. Management expects this volume trend to continue into January and early February. The company reported FY core profit of 2.08 billion euros, in line with its forecast. In 2023, the stock was up 1.74%.

FTSE Bias: Bullish Above Bearish below 7600

• Below 7580 opens 7510
• Primary support at 7382
• Primary objective 7827
• 5 Day VWAP bearish
• 20 Day VWAP bullish 

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