Equities Update: Antofagasta, Savills, Bellway, Aviva…

Antofagasta doubles interim dividend and reports bumper pre-tax profits

Axel Rudolph, Senior Technical Analyst at IG, on Chilean mining company Antofagasta after the firm reported a 63% pre-tax profit and doubled its interim dividend.

“Antofagasta’s numbers make for impressive reading, with a 63% jump in pre-tax profit and revenues surging by almost a third, helped along by buoyant copper prices. The decision to more than double the interim dividend underlines management’s confidence, even as US copper tariffs cast a shadow over the sector. That the share price has barely reacted suggests much of the good news was already priced in, leaving investors looking for the next catalyst to drive the stock higher.”

Savills profits jump, so why are shares falling?

 
Mark Crouch, market analyst for eToro, says: “Strong headline results from Savills contrast sharply with its share price, which has declined by a quarter in the past 12 months. The business itself is fundamentally solid, revenue is growing, and a significant 78% jump in pre-tax profits is undoubtedly good news. However, a slowdown in Q2 aligns with broader trends developing in the property market. Yes, rates are falling, and yes, transaction volumes should bounce. But the property market remains strangled by affordability pressures, and demand that is inconsistent.

“Management at Savills are confident the slowdown is temporary, and return-to-office trends should be a tailwind. Still, in a high-cost environment, many businesses could remain hesitant to commit to more space.  Savills has weathered downturns before, and its balance sheet is in good shape to do so again. A strong business Savills certainly is, but unless activity picks up meaningfully, Savills remains a good company caught in a bad cycle.”
 

Aviva once again a safe pair of hands as profits grow

Adam Vettese, market analyst for eToro says:“Avivahas once again shown itself to be a safe pair of hands in the insurance market, delivering half year results that underline its strong operational momentum. Operating profit rose 22% and the dividend was lifted by 10%, which will always go down well with shareholders. Growth was broad based across insurance and wealth, with UK commercial lines a standout, and the Direct Line acquisition bringing added scale and the prospect of meaningful synergies.

“That said, challenges remain. Adverse weather continues to drive higher claims costs, competitive pressure in personal lines could keep margins in check, and the elevated payout ratio raises questions over dividend flexibility if earnings growth eases. The ongoing run off of legacy books also means Aviva must continue expanding its newer, capital light businesses to maintain momentum.

“Overall, these results reaffirm Aviva’s status as a well capitalised, diversified insurer offering an attractive yield supported by a clear strategy and strong execution. Shares have been flying this year as a result. While integration risks and climate related claims are worth looking out for, the combination of balance sheet strength, high quality earnings growth and shareholder focus keeps Aviva an appealing income play despite the already stellar performance of shares this year.”
 

“Bellway’s latest trading update underscores a remarkably resilient performance”

Axel Rudolph, Senior Technical Analyst at IG “Bellway’s latest trading update underscores a remarkably resilient performance – with housing revenue jumping 17% and completions rising by over 14% to 8,749 homes, all while maintaining a strong underlying margin that is expected to approach 11%. Their forward-looking strategy is particularly compelling: armed with a robust order book and increasingly efficient capital discipline, Bellway is well-positioned to scale to approximately 9,200 homes in FY26, bolstering cash generation and dividends, underpinned by its strategic land bank and the tailwinds from planning reforms.”