Upcoming UK Earning Announcements

High street retail stores take to the stage with earnings this week including Mothercare plc (MTC) and WH Smith Plc (SMWH). We look at securities lending investor sentiment in these stocks and others which are due to update the markets including Rio Tinto (RIO) and Eaga Plc (EAGA).

Mothercare Plc (MTC) is due to report Q2 trading on Today. Short interest has been increasing since May from 2% reaching an all time high of 7%. Coupled with institutional ownership at a low of 13 million shares, utilization has more than doubled in this period to 33%.

WH Smith Plc (SMWH) will be updating the markets with preliminary 2010 earnings. Whilst the company was subject to short covering between May and August, there has been a slight uptick in short interest over the past month. Short interest currently stands at 2.8%. A comfortable 13% of lendable supply is currently out on loan, having increased from 12% over the month.

Rio Tinto (RIO) is also due to report a Q3 operations review today. Although, we do not see much activity in the London listed stock, the stock listed on the ASX50 has been subject to shorting activity. Short interest has increased from 2.2% to 3.4% since mid-August. Funds who lend have also increased their positions slightly from 76 million to 80 million shares available to lend in this time.

Eaga Plc (EAGA) is due to release an interim management statement at the end of the week. The energy efficiency services company has seen a fall in lendable quantity from 33 million to 28 million shares since July. The stock has seen short covering activity throughout the third quarter. However, there has been a recent rise in short interest from 2% to 3% over the past month. The proportion of lendable supply out on loan has also jumped from 12% to 20% with rising short interest.

Spanish listed oil and gas firm Repsol (REP) updated the market this week. Short selling is low at 1.2% of the company but is has been very gently rising.

Finally, although we do not anticipate any announcements from JJB Sports Plc (JJB) we see high shorting activity over the past two weeks. Short interest has seen a surge from 0.5% to 5% of total shares outstanding on loan. Whilst lendable quantity is at a low of 70 million shares, the proportion of shares out on loan has jumped from almost non-existent to 40%.