FTSE 100 movers: AB Foods rallies on Primark openings; Rolls-Royce recovers
London’s FTSE 100 was up 1% at 6,138.72 in afternoon trade on Monday.
Associated British Foods gained after saying it was working to re-open all its Primark Stores in England on 15 June 15 as the government relaxes coronavirus lockdown rules.
Standard Chartered was a high riser after Jefferies switched its preference from HSBC to StanChart, upping its recommendation on the shares to ‘buy’ from ‘hold’. Jefferies highlighted unrest in Hong Kong and noted that HK commercial real estate represents only 15% of common equity at Standard Chartered, as opposed to 45% of group equity at HSBC.
"Stress-testing of Standard Chartered and HSBC’s Hong Kong exposure shows a 2x greater capital impact at HSBC. For HSBC, our balance sheet burndown analysis on Hong Kong exposures estimates a 140bps group CET1 impact, from a bottom-up 6% (or $18bn) cumulative loss - higher than the 4.4% industry loss seen during Asian financial crisis - on Hong Kong exposures.
"At Standard Chartered, a similarly constructed analysts estimates a 70bps group CET1 impact from a bottom-up 4% ($3.2bn) cumulative loss on Hong Kong exposures."
Education publisher Pearson rallied after an upgrade to ‘buy’ at Goldman Sachs.
Aerospace and defence giant Rolls-Royce was in the black, having suffered heavy losses last week following a stake sale by AKO Capital and a downgrade of its credit rating by Standard & Poor’s.
FTSE 100 - Risers
Associated British Foods (ABF) 1,976.00p 8.51%
Standard Chartered (STAN) 391.20p 6.19%
Pearson (PSON) 487.70p 5.24%
Next (NXT) 5,100.00p 4.85%
Informa (INF) 475.10p 4.56%
International Consolidated Airlines Group SA (CDI) (IAG) 237.90p 4.11%
WPP (WPP) 635.60p 3.92%
Taylor Wimpey (TW.) 148.80p 3.62%
Legal & General Group (LGEN) 204.40p 2.97%
Rolls-Royce Holdings (RR.) 279.60p 2.95%
FTSE 100 - Fallers
British Land Company (BLND) 396.40p -2.68%
Hikma Pharmaceuticals (HIK) 2,509.00p -2.41%
Whitbread (WTB) 2,482.00p -1.82%
Aveva Group (AVV) 4,014.00p -1.81%
JD Sports Fashion (JD.) 646.60p -1.79%
Reckitt Benckiser Group (RB.) 7,100.00p -1.72%
Anglo American (AAL) 1,672.60p -1.65%
Sage Group (SGE) 681.60p -1.36%
Admiral Group (ADM) 2,302.00p -1.33%
Auto Trader Group (AUTO) 551.00p -1.29%