FTSE 100 shares to watch next week: Rolls-Royce, HSBC, IAG, LSEG

The FTSE Index remained in a tight range near its all-time high this week as market participants reacted to key news, including inflation and the labor market. It also reacted to key earnings by top companies, Rio Tinto, BAE Systems, and Centrica.

This article explores some of the top Footsie stocks to watch next week as they release their financial results. These firms include top banks like HSBC and Standard Chartered, Rolls-Royce Holdings, London Stock Exchange, IAG, Diageo, and Haleon.

Rolls-Royce Holdings (RR)

Rolls-Royce Holdings will be the most prominent FTSE 100 stock to watch next week as it releases its financial results. It is a notable name as it has been one of the best-performing companies in London, with its stock soaring by nearly 2,000% from its lowest level during the pandemic.

The upcoming results are expected to show that the company’s business continued doing well in the second half of the year. In its recent trading statement, the management guided towards its annual operating profit rising to between £3.1 billion and £3.2 billion, and its cash flow being between £3 billion and £3.1 billion.

HSBC and Standard Chartered 

HSBC and Standard Chartered, which are British banks that focus on the emerging markets, will be in the spotlight next week as they release their numbers. Standard Chartered stock was trading at 1,785p on Friday, up by 105% from its lowest level in April last year, while HSBC had soared by 87% in the same period.

The two banks are increasing their focus on the Hong Kong and Mainland China business, where they are seeing substantial momentum in the wealth management business. HSBC has boosted its presence there by acquiring Hang Seng.

Like other banks, such as Lloyds and Barclays, the most likely scenario is where the two banks will publish strong financial results and boost their outlook.

International Consolidated Airlines Group (IAG)

IAG, the parent company of British Airways, Aer Lingus, and LEVEL, will be another top FTSE 100 Index company to watch next week as it publishes its numbers. 

The IAG share price has surged in the past few years and is now hovering at its record high. It has jumped by 110% from its lowest level in April last year, with its market cap of $28 billion making it the fourth-biggest company in the industry after Delta, United, and Ryanair. 

IAG’s results come at a difficult time for the aviation industry. Jet fuel prices may soar if Donald Trump attacks Iran. Iran has hinted that it will respond by closing the Strait of Hormuz, a move that will boost prices, affecting its margins. 

The war in the Middle East may also affect travel demand, albeit in the short term. This will happen at a time when the tourism industry is making a slow recovery.

The most recent results showed that IAG’s revenue was flat in the third quarter, while its profit after tax fell by 2.3%.

London Stock Exchange (LSEG)

London Stock Exchange share price has come under pressure in the past few months. It crashed from a high of 12,025p in February last year to a low of 6,694p. Most of this crash happened as investors remained concerned about how the artificial intelligence (AI) technology would impact its results in the long term. 

Recently, however, the stock rebounded to the current 7,778p after Elliot Management announced a stake in the company. This is important as Elliot is one of the most feared activist investors in Wall Street.

The other top FTSE 100 shares to watch next week are Haleon and Diageo, which will publish their financial results. Also, defense contractors like Babcock International and BAE Systems will be in the spotlight if the US attacks Iran.