Saxo’s ones to watch: January preview

Summary

January brings new opportunities for investors after a busy Christmas period.

The famous ‘January Effect’ theory, which suggests that stocks perform better this month compared to the remainder of the year, has never been proven. Yet, with investor sentiment up off the back of the holidays and often more money available in January compared to December, traders may be more likely to invest early on in the year.

Though this year will see a big difference in people’s disposable income as the cost of living continues to tighten consumer spending across Europe.

Saxo’s Top 5 Stocks to Watch

AIB

Dublin-based bank AIB has seen its share price rise significantly over the past month continuing its consistent elevation to now pre-pandemic levels over the past six months. AIB revised its medium-term targets in December after the economy picked up better than expected.

Malin Corporation

In February, the biotech investment firm will launch a tender offer on a capital return programme, giving €140million back to shareholders. This news already swayed the market earlier this month and as it moves through the approval stage, it could have a further effect on the share price.

Diageo

Owners of Guinness and Baileys will announce their half year results in January and despite consumers turning away from “premium brands” to save on spending, analysts still believe the company could see a near 8% growth.

Ryanair (RYAAY)

After announcing a handful of new routes from airports across Ireland and the UK for 2023, Ryanair will announce its Q4 earnings report at the end of January. This latest expansion at a time when more people are looking for budget options for their holidays in 2023 should be a profitable move for the company.

Flutter Entertainment (FLTR)

Flutter’s share price on the London Stock Exchange rose to its highest point in 2023 during the World Cup. However, a post-World Cup pullback cannot be ruled out. 

December’s top Earnings calls /AGMs to follow

January 12 - Tesco trading statement

January 19 - Netflix Q4 2022 Earnings

January 24 - Associated British Foods (Primark) Xmas sales performance

January 25 - Tesla Q4 2022 results

January 26 - Easyjet Q4 2022 results

January 26 - Apple Q4 2022 results

January 26 - Samsung Q4 2022 results

January 26 - Diageo (Guinness + others) Half year Results

January 30 - Ryanair Q4 2022 results

January 31 - Alphabet (Google) Q4 2022 results

FX - Latest on the EURO

The Euro has strengthened over the past with the pound and dollar continuing to lose value against the currency.

January, and 2023 in general, holds a different outlook altogether though with inflationary pressures across Europe, quantitative tightening from March and the European Central Bank’s a warning of further interest rate rises, even during a mass recession, set to affect the Euro.

Currency Pairing / Monthly % change

EURCAD / 5.07%

EURUSD / 3.74%

EURAUD / 2.82%

EURGBP / 1.00%

EURCNH / 0.63%

EURDKK / 0.02%

EURNZD / 0.01%

EURJPY / -4.48%

Data recorded from SaxoTrader at 5pm 20/12/22