FTSE 100 movers: Informa hit by downgrade; Next rallies
London’s FTSE 100 was down 0.4% at 6,053.61 in afternoon trade on Thursday as investors digested the latest policy announcement from the Bank of England.
Informa was knocked lower by a downgrade to ‘neutral’ from ‘overweight’ at JPMorgan.
JPM said it had previously seen Informa as an attractive recovery play and long-term structural growth story.
"However, from here we have doubts: while employees are increasingly returning back to their offices, long haul business travel remains subdued and we expect the events industry to suffer longer than initially anticipated," it said.
"While it is consensus that 2020 is a write-off for the space, we more and more anticipate cancellations also for H121 - causing further downgrades to consensus expectations."
Polymetal, Antofagasta and BHP were all weaker as their stock went ex-dividend.
Retailer Next rallied as it posted a slump in half-year pre-tax profit to £9m from £320m but upgraded its profit guidance after sales in the first half and beyond held up better than it had expected. Next increased its central guidance for annual pre-tax profit to £300m from £195m.
Catering company Compass Group was higher after Barclays upgraded its rating to ‘overweight’ from ‘equalweight’ and hiked the price target to 1,500p from 1,050p, saying it was making a long-term call
The bank said Compass is well positioned to flex costs/contracts sufficiently to recover margins even if volumes remain permanently impaired; gain more share from smaller/weaker competitors; benefit from more first-time outsourcing in healthcare/education; and adapt the business to a digital/delivery model where relevant.
FTSE 100 - Risers
Next (NXT) 6,378.00p 3.37%
Rentokil Initial (RTO) 560.80p 2.86%
Sainsbury (J) (SBRY) 189.80p 2.59%
SEGRO (SGRO) 965.60p 2.37%
Ocado Group (OCDO) 2,700.00p 2.23%
ITV (ITV) 66.88p 1.58%
Hikma Pharmaceuticals (HIK) 2,668.00p 1.41%
Admiral Group (ADM) 2,791.00p 1.27%
AstraZeneca (AZN) 8,649.00p 1.25%
Compass Group (CPG) 1,325.00p 1.18%
FTSE 100 - Fallers
Polymetal International (POLY) 1,876.00p -3.79%
Informa (INF) 388.80p -3.02%
NATWEST GROUP PLC ORD 100P (NWG) 100.10p -2.91%
Barclays (BARC) 100.00p -2.87%
Antofagasta (ANTO) 1,080.50p -2.66%
Taylor Wimpey (TW.) 110.45p -2.52%
Standard Chartered (STAN) 372.90p -2.28%
Fresnillo (FRES) 1,275.50p -2.26%
BHP Group (BHP) 1,759.00p -2.22%
Johnson Matthey (JMAT) 2,595.00p -2.22%