FTSE 100 movers: Petrofac shares slide on profit warning

Petrofac's share price dropped by a quarter after the group scaled back its profit assumptions, saying that depressed oil prices and the timing of deliveries will result in a weaker bottom line. The company said net profits for 2014 will be at the lower end of the guided $580m-600m range, but would fall to just $500m in 2015. It had previously predicted "strong earnings growth" next year.

Friends Life saw shares surge after the insurer agreed to a £5.6bn takeover from larger rival Aviva late on Friday. The deal is expected to create the UK's "leading insurance, savings and asset management business by number of customers", the companies said. However, Aviva's shares were trading firmly in the red.

Citigroup cut its recommendation for Hargreaves Lansdown to 'sell', causing the share price of the financial services group to drop sharply. However, the bank gave London Stock Exchange a boost after upgrading the stock to 'buy'.

Anglo-Australian miner BHP Billiton was lower after saying it would implement more cuts to its capital expenditure as well as reorganise its management ranks. The group said it would trim $600m from its planned capital spending to $14.2bn in the 2014-15 financial year and by $1bn to $13bn in the following 12 months.

Smith & Nephew was a strong riser amid speculation that Stryker, the US orthopaedic group, will put in another bid after the six-month cooling-off period that followed the previous offer comes to an end this week.

BT's share price was advancing after the telecoms giant confirmed speculation that it is in talks with two UK mobile network operators "about a possible transaction in which BT would acquire their UK mobile business". It said one of these operators is O2, owned by Spanish group Telefonica.

FTSE 100 - Risers
Smith & Nephew (SN.) 1,139.00p +4.50%
Friends Life Group Limited (FLG) 363.10p +4.43%
BT Group (BT.A) 393.60p +3.58%
London Stock Exchange Group (LSE) 2,168.00p +3.09%
Carnival (CCL) 2,662.00p +1.72%
ITV (ITV) 205.20p +1.68%
SABMiller (SAB) 3,516.00p +1.33%
St James's Place (STJ) 776.00p +1.31%
Experian (EXPN) 1,007.00p +1.21%
CRH (CRH) 1,480.00p +1.16%

FTSE 100 - Fallers
Petrofac Ltd. (PFC) 889.00p -25.48%
Aviva (AV.) 509.50p -5.47%
Hargreaves Lansdown (HL.) 975.00p -3.66%
Weir Group (WEIR) 2,057.00p -2.60%
Royal Mail (RMG) 421.10p -2.21%
Sainsbury (J) (SBRY) 254.90p -1.85%
Centrica (CNA) 286.70p -1.82%
Associated British Foods (ABF) 3,065.00p -1.73%
Fresnillo (FRES) 751.50p -1.57%
BHP Billiton (BLT) 1,640.00p -1.32%