FTSE 250 movers: Provident Financial surges; Signature hit by downgrade
London’s FTSE 250 was up 0.6% at 17,687.58 in afternoon trade on Wednesday.
Doorstep lender Provident Financial surged after swinging to a loss in the first half as revenue fell and bad debts increased but saying that business had picked up in the second half.
WHSmith was boosted by an initiation at ‘buy’ at Goldman Sachs, which said the stock offers industry-leading returns at a discount.
"Our positive view is based on a gradual improvement in traffic (across air, rail and UK high street) and a constructive long-term view on profitability, resulting in a strong returns forecast versus peers, which we reflect in our multiples-based valuation framework," it said.
Car dealership Inchcape also gained on the back of a broker note, as JPMorgan Cazenove upgraded the stock to ‘overweight’ from ‘neutral’, saying it has been positively surprised by the strength of the company’s cash flow, with carefully controlled working capital pressure.
"While earnings are under severe pressure in the short run, we note that many of the group's markets are at multi-year lows," it said. "Timing is difficult, but at some point, we think the group will begin to see materially stronger earnings momentum."
Go-Ahead traded up as it secured a two-year bus contract extension in Singapore.
Going the other way, Signature Aviation was knocked lower by a downgrade to ‘neutral’ from ‘overweight’ at JPM. It said Signature has proven itself to be more resilient than feared, with perceived balance sheet risk now neutralised.
Nevertheless, it has decided to downgrade the rating following an 18% rise in the share price in the last month, arguing that the stock now seems closer to fair value.
FTSE 250 - Risers
Provident Financial (PFG) 233.00p 19.06%
WH Smith (SMWH) 1,111.00p 6.52%
Inchcape (INCH) 513.50p 6.36%
William Hill (WMH) 169.75p 5.96%
Dixons Carphone (DC.) 93.20p 4.48%
Watches of Switzerland Group (WOSG) 334.00p 4.37%
Trainline (TRN) 396.00p 3.66%
Grafton Group Ut (GFTU) 736.50p 3.59%
Cairn Energy (CNE) 144.90p 3.57%
Go-Ahead Group (GOG) 673.00p 3.54%
FTSE 250 - Fallers
PPHE Hotel Group Ltd (PPH) 1,065.00p -4.05%
Signature Aviation (SIG) 258.40p -3.55%
Clarkson (CKN) 2,360.00p -2.68%
Petrofac Ltd. (PFC) 163.70p -2.50%
Ascential (ASCL) 301.60p -1.76%
Mitchells & Butlers (MAB) 158.00p -1.62%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 318.00p -1.55%
Equiniti Group (EQN) 115.40p -1.54%
HGCapital Trust (HGT) 270.00p -1.46%
Energean (ENOG) 580.40p -1.38%