FTSE 100 movers: Burberry falls after warning on trading conditions
Tue 11 Sep 2012
LONDON (SHARECAST) - British fashion house Burberry plummeted in the opening hour and has remained firmly in the bottom spot after warning that trading conditions were becoming more challenging with like-for-like sales flat in the second quarter. The firm said that ahead of the key retail trading period in the second half, it expected pre-tax profits for the year to March 31st 2013 to be at the lower end of market expectations.
Nomura and Seymour Pierce both downgraded their ratings on the stock this morning. "This news will obviously hit sentiment towards Burberry and the luxury sector and the shares are likely to underperform until there is better news on demand," said Seymour analyst Kate Calvert.
Miners were firmly out of favour as risk appetite waned with Vedanta, Anglo American, Fresnillo, Antofagasta and Kazakhmys all taking a hit.
Meanwhile, RBS was heading higher after US broker JP Morgan Cazenove gave the stock a positve write-up, saying it believes RBS "now offers better value" than Lloyds.
FTSE 100 - Risers
Royal Bank of Scotland Group (RBS) 263.40p +4.11%
International Consolidated Airlines Group SA (CDI) (IAG) 154.80p +3.27%
British American Tobacco (BATS) 3,169.50p +1.44%
Barclays (BARC) 210.70p +1.42%
Hargreaves Lansdown (HL.) 661.50p +1.22%
BP (BP.) 441.85p +0.93%
Amec (AMEC) 1,133.00p +0.80%
Imperial Tobacco Group (IMT) 2,267.00p +0.76%
RSA Insurance Group (RSA) 116.50p +0.69%
GlaxoSmithKline (GSK) 1,424.50p +0.64%