FTSE 100 movers: NMC Health rallies on deal speculation; CRH loses ground
London's FTSE 100 was down 1.3% at 7,108.95 in afternoon trade on Thursday as sterling was boosted by the latest comments from German Chancellor Angela Merkel.
Building materials group CRH was trading lower despite posting record first-half earnings and saying it expects to buy back a further €350m in shares by the end of the year.
In the six months to the end of June, earnings before interest, tax, depreciation and amortisation were up 36% to €1.5bn, with revenue up 11% to €13.2bn as the company's improvement programme bore fruit. Pre-tax profit during the half rose to €707m from €497m in the first half of last year.
CRH said it benefited from a positive underlying demand backdrop in Europe and North America, with strong contributions from acquisitions and tailwinds from currency exchange movements.
Russ Mould, investment director at AJ Bell, said there are some cracks in the façade. "The numbers are flattered by positive currency movements and are also boosted by acquisitions," he said.
"Selectively buying up businesses is unashamedly part of the strategy, but organic growth is probably a better test of the firm’s foundations. Take acquisitions out of the equation and growth look solid rather than spectacular."
Online supermarket Ocado was in the red as it said a "small fire" reported at its customer fulfilment centre in Erith, southeast London, on Wednesday evening, had been extinguished. Back in February, the company's warehouse in Andover, Hampshire, suffered a huge fire that was later found to have been sparked by an electrical fault that set a robot on fire.
Imperial Brands and Prudential were weaker as their stock went ex-dividend.
UAE-based healthcare provider NMC Health surged to the top of the index following a Reuters report that two groups, including one backed by China's Fosun, have made competing offers to buy a 40% stake in the company worth up to $1.9bn.
NMC also released its half-year results, which showed an increase in profit, and announced a share buyback.
FTSE 100 - Risers
NMC Health (NMC) 2,395.00p 23.71%
ITV (ITV) 114.25p 3.30%
TUI AG Reg Shs (DI) (TUI) 805.20p 2.05%
Sainsbury (J) (SBRY) 198.63p 1.45%
Kingfisher (KGF) 192.85p 1.07%
Persimmon (PSN) 1,878.50p 1.05%
DCC (DCC) 6,852.00p 1.03%
Melrose Industries (MRO) 169.10p 0.93%
Aviva (AV.) 361.80p 0.92%
Marks & Spencer Group (MKS) 188.65p 0.86%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 761.40p -2.91%
Imperial Brands (IMB) 2,042.00p -2.90%
Scottish Mortgage Inv Trust (SMT) 524.21p -2.83%
Aveva Group (AVV) 3,842.00p -2.59%
CRH (CRH) 2,603.00p -2.51%
BAE Systems (BA.) 551.20p -2.44%
Prudential (PRU) 1,383.00p -2.36%
Anglo American (AAL) 1,683.60p -2.29%
Ocado Group (OCDO) 1,214.50p -2.25%
Sage Group (SGE) 692.40p -2.18%