FTSE 100 movers: Babcock boosted by buoyant markets
Tue 02 Oct 2012
LONDON (SHARECAST) - Engineering support firm Babcock was performing well today after saying it was enjoying buoyant markets as customers turned to it to make cost savings. Jefferies, Seymour Pierce and Investec all hailed the first-half trading update as "in line", maintaining their 'buy' ratings for the stock while saying that the business is "well positioned".
Meanwhile, banking stocks were dragging the index lower following the decision by UBS to slash their rating on shares of Lloyds, RBS and Barclays from buy to neutral, attributing the cut to worries over the potential need of the sector to raise new capital at some point.
In a broker note, UBS said: "The UK banks have not heeded exhortations to raise external equity in our view as they simply do not need it. However, we see a risk that the market will focus the absolute equity level requirement as leading to a risk of new equity issuance, to the detriment of current equity value."
Pharma giant AstraZeneca was extending losses after announcing yesterday that it had suspended its share repurchase programme with immediate effect. Credit Suisse cut its forecasts for the group this morning, saying that this "will likely mark the start of further EPS downgrades at AZN".
Plumbers' merchant Wolseley fell despite paying 40p on top of the full-year divi of 60p. However, the European outlook for the company is a concern for some brokers, with Irish broker Davy downgrading the stock from outperform to neutral following its full year results.
Airline group IAG was a high riser on yet to be confirmed (and somewhat contradictory) reports that Qatar Airways is joining the oneworld alliance.
Investec has upgraded its recommendation for retail-focused real estate investment trust Hammerson from 'sell' to 'hold', providing a lift for the shares.
FTSE 100 - Risers
Babcock International Group (BAB) 955.50p +3.58%
Tesco (TSCO) 338.80p +2.36%
International Consolidated Airlines Group SA (CDI) (IAG) 157.60p +2.14%
Fresnillo (FRES) 1,921.00p +2.13%
BAE Systems (BA.) 333.90p +2.05%
IMI (IMI) 949.00p +1.77%
BG Group (BG.) 1,300.00p +1.64%
Randgold Resources Ltd. (RRS) 7,765.00p +1.30%
United Utilities Group (UU.) 733.50p +1.17%
WPP (WPP) 856.00p +1.12%
FTSE 100 - Fallers
Royal Bank of Scotland Group (RBS) 255.70p -4.02%
Lloyds Banking Group (LLOY) 38.78p -2.98%
Evraz (EVR) 247.40p -2.48%
Croda International (CRDA) 2,448.00p -2.12%
Schroders (SDR) 1,541.00p -1.97%
ARM Holdings (ARM) 577.50p -1.45%
Amec (AMEC) 1,140.00p -1.30%
BHP Billiton (BLT) 1,949.00p -1.29%
AstraZeneca (AZN) 2,888.50p -1.25%
Xstrata (XTA) 969.20p -1.10%