Equities Update: Unilever, Boeing, GSK, Aston Martin, Greggs, South Korea...

Unilever washes away the blues with a sparkling volume surge

Adam Vettese, market analyst for etoro, says:“Unilever shares jumped sharply this morning after the consumer giant delivered a far stronger first half performance than the cautious low end guidance had suggested.

“The numbers delivered genuine volume acceleration that suggests the long promised shift from price led to demand-led growth is starting to stick. The real signal is not the headline growth itself, but the breadth and quality of it. Power Brands are pulling ahead decisively, emerging markets are doing the heavy lifting, and the business is delivering this while still protecting margins. It shows the portfolio simplification and sharper focus on fewer, stronger brands are beginning to translate into competitive momentum rather than just cost savings and buybacks.

“Guidance remains cautious, which is sensible given the soft backdrop in developed markets. Yet, the outperformance relative to the modest expectations the company itself had set has given the market permission to re-rate the shares.”

Boeing misses on earnings due to defence charge:

Chris Beauchamp, Chief Market Analyst at IG

A nasty $280 million charge for the Air Force One replacement programme meant that Boeing’s results were a mixed bag on the headlines, but the picture below the surface is improving. The order backlog has grown again, which at least provides plenty of clarity for earnings in the quarters to come, and the shares have responded in cautiously positive fashion in the premarket.”

GSK doubles down on future growth despite pipeline setback

Mark Crouch, market analyst for etoro, says:“The biggest surprise from GSK’s latest update isn’t the strength of the numbers, but the confidence behind them. Strong growth in Specialty Medicines and Vaccines once again did the heavy lifting, helping offset continued weakness in parts of the General Medicines business, while higher profitability demonstrates that investment in newer products is increasingly paying off. More importantly, management isn’t taking a defensive stance despite an increasingly competitive pharmaceutical landscape. Instead, it’s accelerating research spending, planning more than 20 phase III trial starts this year and investing heavily in its late-stage pipeline while simultaneously targeting almost £2 billion of annual cost savings by 2029.

“The sizeable impairment linked to camlipixant serves as a reminder that drug development remains an inherently uncertain business, but investors tend to judge pharmaceutical companies on the strength and depth of future pipelines rather than individual setbacks. By reaffirming full-year guidance alongside a more ambitious research agenda, GSK is signalling confidence that its next generation of medicines can continue to drive growth well beyond its current portfolio.”

Aston Martin’s results offer investors hope, but questions still remain

Mark Crouch, market analyst for etoro, says:

“This is an important milestone, not the finish line. Debt remains substantial, losses persist and the economic backdrop offers little margin for error in the luxury car market. Yet maintaining full-year guidance while strengthening the balance sheet should give even cautious investors reason to take another look. The real challenge now is proving this improvement isn’t just another lap, but the beginning of a more durable recovery.”Greggs serves up a tasty first half, and the market is tucking in

Adam Vettese, market analyst for etoro, says:“In a still-tough consumer climate, Greggs’ value credentials are doing the heavy lifting. Customers are still queuing for sausage rolls and steak bakes, while grocery partnerships and new stores added an extra boost. Cost control and an easy year-ago comparison helped the bottom line look especially solid.

“Shares jumped strongly at the open after the bakery giant reported a near 23% rise in operating profit to £86.5 million and pre-tax profit up almost 20% to £76 million. Total sales climbed 7.2%, with like-for-like growth of 2.1% in company managed shops and further market share gains to 8.7% of food-to-go visits.
“Full year guidance is unchanged, though bosses flagged that second half profits will face a headwind from new distribution capacity. Capex is being reined in and the dividend held steady at 19p.
“The bounce is welcome, but the shares remain a long way below the levels seen before their near halving in 2025, when slowing growth and higher costs triggered a sharp derating. For a brand that thrives when wallets tighten, this is reassuring rather than revolutionary. As long as the value offer keeps resonating, Greggs looks set to keep baking in the gains.”

South Korea sell-off: when a crowded trade meets leverage

Lale Akoner, global market strategist for etoro, says:“South Korea’s sharp sell-off is a textbook example of what happens when a crowded trade meets leverage. Retail investors had built concentrated exposure to Samsung Electronics and SK Hynix through leveraged products. Once those stocks began to fall, forced selling and the mechanics of leveraged ETFs amplified the decline, turning a correction into a much more violent market move.
“This should not be mistaken for a wholesale collapse in the AI investment case. SK Hynix’s results fell short of exceptionally high expectations, but the scale and speed of the reaction suggest positioning has played at least as large a role as fundamentals. The same vulnerability exists across global technology markets, where leveraged ETFs, options and margin trading helped fuel the rally and can now accelerate the reversal.

“Deleveraging is unlikely to be resolved in a matter of days, so investors should expect further sharp swings in technology and semiconductor stocks over the coming months. The crucial distinction is between volatility caused by crowded positioning and a genuine deterioration in the longer-term earnings outlook. Much of the current move appears to reflect the former.”

Equities Update: Unilever, Boeing, GSK, Aston Martin, Greggs, South Korea…