FTSE 100 movers: Ferguson rallies on results; Hargreaves Lansdown hit by broker note
London’s FTSE 100 was down 0.7% at 7,355.55 in afternoon trade on Tuesday, tracking broader market losses following the release of disappointing US manufacturing data.
Precious metals miners Fresnillo and Polymetal lost their shine as gold prices fell.
Hargreaves Lansdown was in the red as Credit Suisse initiated coverage of the stock at ‘underperform’ with a 1,740p price target as it launched coverage of the European diversified financials sector.
The bank said its 2020-22 earnings per share forecast for HL are 6-13% below consensus expectations and it reckons the stock’s premium valuation is difficult to support in the face of near-term headwinds.
It added that "momentum looks challenging" as HL missed its performance targets for fund flows, new clients and profit before tax in FY19.
AstraZeneca was weaker after it announced that it will sell the global commercial rights for its drug to treat acid reflux to German pharmaceutical company Cheplapharm Arzneimittel.
On the upside, Ferguson gained after it reported a jump in annual profits as it benefited from acquisitions and cost-cutting. The plumbing and heating products specialist booked a profit before tax of $1.4bn for the year ended 31 July, up 7% compared to the year before, as revenue climbed 6% to $22.0bn.
Richard Hunter, head of markets at Interactive Investor, said: "Ferguson has, for the most part, delivered in terms of these numbers and the demerger makes sound strategic sense in recognising the US business as a separate entity, as well as creating some additional value for shareholders.
"This in turn has garnered wide support for the company’s objectives, with the market consensus of the shares as a buy reflecting general optimism."
Premier Inn owner Whitbread bounced back a day after slumping on the back of a downgrade to ‘equalweight’ from ‘overweight’ by Barclays.
FTSE 100 - Risers
Ferguson (FERG) 6,242.00p 5.01%
Kingfisher (KGF) 212.00p 2.51%
Next (NXT) 6,336.00p 2.42%
Whitbread (WTB) 4,377.00p 1.93%
Ashtead Group (AHT) 2,307.00p 1.90%
Mondi (MNDI) 1,586.00p 1.80%
Ocado Group (OCDO) 1,345.00p 1.70%
Imperial Brands (IMB) 1,858.60p 1.66%
TUI AG Reg Shs (DI) (TUI) 961.17p 1.63%
BT Group (BT.A) 181.21p 1.47%
FTSE 100 - Fallers
Fresnillo (FRES) 666.18p -2.55%
Polymetal International (POLY) 1,115.00p -2.19%
Reckitt Benckiser Group (RB.) 6,219.00p -1.97%
Hargreaves Lansdown (HL.) 2,039.00p -1.92%
Evraz (EVR) 459.80p -1.67%
Experian (EXPN) 2,560.00p -1.50%
NMC Health (NMC) 2,671.00p -1.44%
Glencore (GLEN) 241.55p -1.31%
AstraZeneca (AZN) 7,170.00p -1.25%
Standard Chartered (STAN) 675.80p -1.23%