FTSE 100 movers: Kingfisher rallies; Rolls-Royce retreats
London’s FTSE 100 was up 1.4% at 6,386.16 in afternoon trade on Wednesday, posting its eighth straight session of gains.
B&Q and Castorama owner Kingfisher was a strong performer as Credit Suisse said it was set to be a "lasting beneficiary of a post Covid world".
British Airways and Iberia parent IAG flew higher after Bank of America Merrill Lynch upgraded the stock to ‘buy’ from neutral’. It said IAG is now its only ‘buy’ in the full service carriers, which BoA said reflected "its strong balance sheet and expected benefits of a gradual transatlantic recovery".
Ocado and Just Eat Takeaway were both higher, recovering from losses earlier in the week on Covid-19 vaccine optimism.
Flutter Entertainment gained as it upgraded its earnings forecast for business outside the US but said the loss at its American gambling operation would be bigger than expected after it spent to acquire customers.
On the downside, engine maker Rolls-Royce fell, having surged earlier in the week on vaccine hopes, while Informa retreated despite saying it was on track to be cash flow positive next year.
InterContinental Hotels was knocked lower by a downgrade to ‘sell’ from ‘neutral’ at UBS, which argued that the recent rally was premature, new risks are underappreciated and the stock is "priced for perfection in an uncertain recovery".
Croda International was also weaker on a broker note after JPMorgan Cazenove downgraded its stance on shares of the specialty chemicals company to ‘underweight’ from ‘neutral’, pointing to an expensive valuation and already full 2021 consensus.