FTSE 100 movers: Ashtead rallies on results; Evraz slips on downgrade
London's FTSE 100 was up 1.5% at 7,465.62 in afternoon trade on Tuesday, extending earlier gains as sentiment got a boost after ECB President Mario Draghi signalled that monetary policy could be eased if inflation does not pick up.
Equipment rental firm Ashtead was the standout gainer after it posted a 20% jump in full-year pre-tax profit, thanks in part to a strong performance in North America.
In the year to 30 April, statutory pre-tax profit rose to £10.6bn from £862.1m the year before, on revenue of £4.5bn, up 19%. Rental revenue grew 18% during the year to £4.1bn and the company proposed a final dividend of 33.5p, taking the full-year dividend to 40p a share, up 21%.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "The good times are still rolling for Ashtead. Opening new stores and buying up smaller rivals in the US and Canada means revenues and profits have been accelerating sharply, and the decision to buy back shares means earnings per share has been turbo-charged even further.
"Throw in some hefty dividend hikes and all looks well. The group seems comfortable that demand will remain healthy in the US, and given Donald Trump’s commitment to various US construction projects that doesn’t look unreasonable."
Miners were also on the front foot as copper prices gained, with Antofagasta, Glencore, Anglo American and BHP all higher.
On the downside, steel maker Evraz slipped after a downgrade to 'sell' at Citi.
FTSE 100 - Risers
Ashtead Group (AHT) 2,066.00p 5.33%
Antofagasta (ANTO) 896.40p 4.23%
Tesco (TSCO) 236.50p 4.19%
Glencore (GLEN) 278.80p 3.26%
Smith (DS) (SMDS) 342.20p 3.01%
Centrica (CNA) 91.96p 3.00%
Standard Chartered (STAN) 709.40p 2.93%
Anglo American (AAL) 2,170.00p 2.92%
BHP Group (BHP) 1,973.00p 2.91%
Severn Trent (SVT) 2,111.00p 2.63%
FTSE 100 - Fallers
TUI AG Reg Shs (DI) (TUI) 729.20p -1.62%
Imperial Brands (IMB) 1,922.20p -1.50%
Whitbread (WTB) 4,624.00p -0.99%
Evraz (EVR) 705.60p -0.54%
Legal & General Group (LGEN) 267.30p -0.48%
Phoenix Group Holdings (PHNX) 683.90p -0.36%
Smith & Nephew (SN.) 1,717.00p -0.26%
Admiral Group (ADM) 2,090.00p -0.24%
Carnival (CCL) 4,055.00p -0.07%
Direct Line Insurance Group (DLG) 324.40p -0.03%