FTSE 100 movers: Halma hit by downgrade; banks rally
London’s FTSE 100 was down 0.2% at 7,168.93 in afternoon trade on Thursday.
Shares in safety equipment specialist Halma slumped after Berenberg said the stock’s valuation "remains a hurdle".
Given the valuation issue - the shares trade at 47.0x March 2022 price-to-earnings and 31.4x EV/EBITDA - the bank said it prefers buy-rated Oxford Instruments, Diploma and Spectris, which all trade on "more palatable multiples for similar exposure".
Premier Inn owner Whitbread was up as it maintained guidance despite an extension of the UK government’s lockdown, forecasting strong summer demand in coastal destinations. The company said first quarter like-for-like sales across its hotel and restaurant estate were down 71% compared with the same period in 2019 before the pandemic struck.
British Airways and Iberia owner IAG and engine maker Rolls-Royce gained ground following reports that fully vaccinated Britons could be exempt from quarantine after an amber list holiday.
Banks Barclays, NatWest, StanChart, HSBC and Lloyds advanced after the US Federal Reserve signalled that interest rates could be raised sooner than expected.
FTSE 100 - Risers
Whitbread (WTB) 3,379.00p 2.71%
International Consolidated Airlines Group SA (CDI) (IAG) 201.95p 2.70%
Barclays (BARC) 181.20p 2.30%
NATWEST GROUP PLC ORD 100P (NWG) 209.30p 2.00%
Standard Chartered (STAN) 493.90p 1.77%
HSBC Holdings (HSBA) 445.25p 1.64%
BT Group (BT.A) 203.10p 1.45%
Lloyds Banking Group (LLOY) 48.30p 1.27%
Rolls-Royce Holdings (RR.) 111.34p 1.22%
Pershing Square Holdings Ltd NPV (PSH) 2,555.00p 1.19%
FTSE 100 - Fallers
Halma (HLMA) 2,674.00p -6.21%
3i Group (III) 1,211.00p -3.74%
Hikma Pharmaceuticals (HIK) 2,429.00p -3.30%
Polymetal International (POLY) 1,601.50p -3.06%
Fresnillo (FRES) 807.80p -3.05%
Intermediate Capital Group (ICP) 2,186.00p -2.97%
Spirax-Sarco Engineering (SPX) 13,230.00p -2.68%
Ocado Group (OCDO) 1,863.00p -2.64%
Croda International (CRDA) 7,064.00p -2.30%
Barratt Developments (BDEV) 717.20p -2.26%