FTSE 100 movers: Direct Line rallies on surprise update, Relx boosted by upgrade

London's FTSE 100 was down 1% to 7,096.75 in afternoon trade on Friday, on track to end a volatile week firmly in the red.

Direct Line was the standout gainer as it guided toward a much bigger profit for 2017 than the market was expecting, thanks to good results from motor and commercial insurance and lower than expected weather claims.

In a pre-close update ahead of its results at the end of the month, the company said operating profit from ongoing operations had come in at around £610m and profit before tax at about £540m, up 51% and 53% over the year.

Fellow insurer Admiral also gained ground.

Relx, formerly Reed Elsevier, was among the top gainers as Deutsche Bank upped the stock to 'buy' from 'hold' and lifted the price target to 1,750p from 1,630p.

"We have been waiting for some time for the market to present an attractive entry point into Relx. The recent sell off, with stock down 17% from peak (FTSE100 -4% since 28 Nov 2017) represents just that opportunity, in our view."

The bank said the stock has been hit by a rotation out of bond proxies, adverse currency moves and the scientific information division. DB argued that these worries have hurt the stock too much, creating an opportunity to buy into a high quality, cash generative and subscription-driven business.

Risers

Direct Line Insurance Group (DLG) 377.00p 2.31%
Admiral Group (ADM) 1,859.50p 2.20%
Relx plc (REL) 1,501.00p 1.83%
Taylor Wimpey (TW.) 185.15p 1.76%
Associated British Foods (ABF) 2,635.00p 1.42%
Rio Tinto (RIO) 3,807.00p 1.33%
Hammerson (HMSO) 468.30p 1.14%
Just Eat (JE.) 812.20p 1.07%
Berkeley Group Holdings (The) (BKG) 3,764.00p 1.05%
Whitbread (WTB) 3,805.00p 1.04%

Fallers

Pearson (PSON) 663.60p -2.56%
3i Group (III) 889.80p -2.54%
Johnson Matthey (JMAT) 3,170.00p -2.49%
ITV (ITV) 161.35p -2.21%
Burberry Group (BRBY) 1,510.50p -2.14%
Royal Bank of Scotland Group (RBS) 278.10p -1.94%
Mondi (MNDI) 1,775.00p -1.88%
United Utilities Group (UU.) 698.20p -1.86%
Micro Focus International (MCRO) 2,011.00p -1.85%
Imperial Brands (IMB) 2,638.50p -1.70%