FTSE 100 movers: Insurers under pressure; Hikma boosted by Citi note
London’s FTSE 100 was down 1% at 5,427.69 in afternoon trade on Friday following the US non-farm payrolls report.
Legal & General and Aviva were under the cosh after the European Union asked insurers to suspend dividend payments amid the coronavirus pandemic.
ITV was weaker after saying that its executive directors and management board will forgo their annual bonus as the broadcaster looks to weather the virus outbreak. They have also agreed to a 20% reduction in base salary throughout the government-imposed lockdown. If the lockdown continues beyond 30 June, the matter will be reviewed, ITV said.
Going the other way, Hikma Pharmaceuticals was higher on the back of an upbeat note from Citi, which rates the stock at ‘buy’. The bank said: "Hikma is poised to benefit from a windfall after prevailing in Vascepa litigation; assuming FDA approval we see at least 8-13% EPS upside for 2021e.
"In the current environment we believe a near net-cash balance sheet, dividend security and guidance that leaves earnings risks to the upside are attractive features."
Cruise operator Carnival was in the green, having fallen sharply a day earlier after it paid a high price for $6.25bn rescue funding.
FTSE 100 - Risers
London Stock Exchange Group (LSE) 7,180.00p 6.59%
Hikma Pharmaceuticals (HIK) 2,299.00p 5.56%
Bunzl (BNZL) 1,568.00p 4.19%
Relx plc (REL) 1,697.00p 3.60%
Morrison (Wm) Supermarkets (MRW) 185.05p 3.38%
Carnival (CCL) 624.80p 3.27%
Melrose Industries (MRO) 76.76p 3.23%
Ocado Group (OCDO) 1,373.50p 2.88%
Sainsbury (J) (SBRY) 210.60p 2.83%
Standard Chartered (STAN) 406.90p 2.13%
FTSE 100 - Fallers
Pearson (PSON) 474.60p -9.60%
Whitbread (WTB) 2,497.00p -7.79%
Legal & General Group (LGEN) 164.65p -7.27%
Phoenix Group Holdings (PHNX) 537.80p -6.63%
Smiths Group (SMIN) 1,070.00p -5.98%
Aviva (AV.) 234.90p -5.93%
M&G (MNG) 111.90p -5.81%
ITV (ITV) 55.84p -5.77%
SSE (SSE) 1,081.00p -5.59%
Rolls-Royce Holdings (RR.) 263.00p -5.50%