MARKET REPORT: Hargreaves Lansdown cashes in on ISA season

With the FTSE 100 achieving record highs and notching up a second consecutive month of gains in April, it looks like investment firms have been reaping the rewards.

Hargreaves Lansdown issued a strong quarterly trading update highlighting good momentum through ISA season into the new tax year.

The investment platform saw net client inflows of £1.6billion, well ahead of the consensus forecast of £1.4billion.

Hargreaves Lansdown reported net client growth of 34,000 in the March quarter, up from 23,000 a year earlier, while share dealing volumes averaged 794,000 per month, up from 672,000 in the three months to December 2023.

Assets under administration rose by 5.3 per cent to a record £149.7billion as of March 31, up from £132billion a year earlier. 

New clients: Hargreaves Lansdown reported net client growth of 34,000 in the March quarter, up from 23,000 a year earlier, while share dealing volumes averaged 794,000 per month

The good news saw Hargreaves Lansdown shares advance 3.6 per cent, or 28.2p, to 813.8p.

But not all the news from the financials was well-received.

FTSE 100-listed wealth manager St James’s Place shed 2.1 per cent, or 9.2p, to 435.6p as its net flows were a touch shy of consensus, though client funds under management increased to £179billion from £168.2billion at the end of December.

Insurer Prudential was among the blue-chip fallers, down 5.5 per cent, or 40.4p, to 701p, after its results showed a sales slump at its Chinese mainland joint venture in the first quarter. 

Pru also failed to deliver the share buyback that many investors were expecting.

At the end of a positive month, the FTSE 100 index inched down 0.04 per cent, or 2.9 points, to 8144.13 yesterday after earlier hitting another intra-day high just shy of the 8200 level at 8199.95.

Stock Watch – IG Design Group

IG Design Group jumped nearly 30 per cent after a strong full-year trading update which forecast significant growth in profit and margin.

The stationery products manufacturer expects to report a full-year adjusted pre-tax profit of £20.7million – well up from the £7.4million delivered in 2023. 

The financial performance in the current year has been ahead of expectations, the business said.

Shares soared 29.6 per cent, or 36p, to 157.5p.

The FTSE 250 also did well in April but fell in the month’s final session, slipping 0.6 per cent, or 119.4 points, to 19965.39.

Drinks bottler Coca-Cola HBC was among the FTSE 100 risers, up 0.5 per cent, or 14p, to 2590p, on the back of solid quarterly numbers, with management reiterating its full-year guidance.

And Howden Joinery added 0.4 per cent, or 3.5p, to 876p as the trade kitchen and joinery supplier reported a rise in first-quarter depot revenue and hailed an ‘encouraging’ start to the year. 

Among other FTSE 250 gainers, industrial valve manufacturing company Rotork rose 2.3 per cent, or 7.4p, to 323.4p after a first- quarter trading update showed growth in order intake of the low single digits, which was positive compared to the previous year.

Utilities company Telecom Plus added 1.3 per cent, or 22p, to 1736p as it said its full-year adjusted pre-tax profit was set to be towards the upper end of market expectations after a record year.

But Metro Bank lost 4 per cent, or 1.4p, to 33.3p as the challenger bank saw its total lending fall 9 per cent year-on-year to £11.8billion, although deposits edged up by 4 per cent in the first quarter.

Builders merchant Travis Perkins slipped 1.1 per cent, or 8.5p, to 753p after news that its chairman Jasmine Whitbread is to step down at the end of the month, weeks after chief executive Nick Roberts quit.

This post first appeared on Dailymail.co.uk