FTSE 100 movers: Pearson surges on results but Merlin gets clobbered
London's FTSE 100 was up 0.3% to 7,546.11 in afternoon trade on Tuesday as investors digested the latest UK inflation figures.
Pearson racked up strong gains after saying underlying revenues fell 2% in the first nine months of the year, largely as expected, but the education publisher improved its earnings guidance and promised a £300m share buyback.
Convatec was recouping some losses after shares tanked on Monday on the back of a profit warning. The company cautioned that revenues and profits for the full year will be lower than it had previously guided and that growth targets in 2018 may need to be adjusted.
Sainsbury's and Morrisons were trading higher after the release of the latest data from Kantar Worldpanel. According to Kantar, Morrisons sales were up 2.8% in the 12 weeks to 8 October, making it the fastest growing of the large retailers. Meanwhile, sales at Sainsbury’s increased 1.9% in the same period.
On the downside, shares in Merlin Entertainments took a battering after the Legoland operator reported comparable revenue was broadly flat in the year to date, as London sites were hit by bad weather and the impact of terror attacks.
Mediclinic retreated after saying first-half earnings will be down around 10% at the underlying level as the hospital operator turns around its Middle East business.
Standard Life Aberdeen was under the cosh after Bernstein cut the stock to 'market perform' from 'outperform' saying it feels like a "consensus long post-deal" and it sees limited scope for remaining catalysts to drive the shares materially higher over the next twelve months.
"Instead, we think the shares will remain rangebound as open questions around net flows and margins are resolved over time."
Risers
Pearson (PSON) 667.50p 7.40%
Convatec Group (CTEC) 213.10p 3.95%
Sainsbury (J) (SBRY) 249.70p 2.50%
Severn Trent (SVT) 2,122.00p 1.92%
United Utilities Group (UU.) 844.50p 1.62%
Barclays (BARC) 192.25p 1.59%
WPP (WPP) 1,398.00p 1.53%
Lloyds Banking Group (LLOY) 66.46p 1.33%
BHP Billiton (BLT) 1,435.00p 1.20%
Morrison (Wm) Supermarkets (MRW) 237.30p 1.19%
Fallers
Merlin Entertainments (MERL) 367.40p -18.30%
Mediclinic International (MDC) 640.00p -5.19%
Standard Life Aberdeen (SLA) 433.40p -2.89%
3i Group (III) 949.50p -1.91%
St James's Place (STJ) 1,164.00p -1.61%
Whitbread (WTB) 3,966.00p -1.59%
NMC Health (NMC) 2,851.00p -1.55%
Johnson Matthey (JMAT) 3,397.00p -1.51%
Smith & Nephew (SN.) 1,399.00p -1.41%
BT Group (BT.A) 269.80p -1.33%