FTSE 100 movers: Persimmon boosted by upgrade; WPP hit by downgrade
London’s FTSE 100 was down 0.3% at 6,174.00 in afternoon trade on Wednesday.
WPP was under the cosh after Credit Suisse reinstated coverage of shares in the advertising company at ‘underperform’ with a 565p price target, pointing to "rising industry disruption".
The bank said its analysis of the marketing industry suggests clients are shifting spend more rapidly to digital transformation at a time when agencies still have at least 70% of their revenues from traditional services.
"Creative fee pressure, progressive in-housing of creative, production and media, competition in digital transformation from consultancies and new marketing technology (martech) firms remain the key challenges," it said.
HSBC was weaker following a report the US could target Hong Kong’s currency peg with the dollar as a response to China’s new security law. Standard Chartered was in the red.
"Should the peg disappear it could further destabilise Hong Kong and increase currency impacts on earnings," said London Capital Group analyst Jasper Lawler.
Going the other way, housebuilder Persimmon was on the rise after a rating upgrade to ‘add’ at Peel Hunt and ahead of a trading update on Thursday.
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 284.60p 2.56%
Persimmon (PSN) 2,468.00p 2.32%
Hargreaves Lansdown (HL.) 1,617.00p 1.79%
Fresnillo (FRES) 900.80p 1.76%
Associated British Foods (ABF) 1,984.50p 1.72%
Coca-Cola HBC AG (CDI) (CCH) 2,038.00p 1.60%
London Stock Exchange Group (LSE) 8,416.00p 1.54%
InterContinental Hotels Group (IHG) 3,874.00p 1.39%
Diageo (DGE) 2,765.00p 1.28%
Avast (AVST) 549.50p 1.10%
FTSE 100 - Fallers
WPP (WPP) 596.00p -4.61%
Melrose Industries (MRO) 114.20p -3.99%
International Consolidated Airlines Group SA (CDI) (IAG) 213.50p -3.22%
HSBC Holdings (HSBA) 382.80p -3.13%
JD Sports Fashion (JD.) 652.20p -2.42%
Ashtead Group (AHT) 2,701.00p -2.17%
Evraz (EVR) 295.30p -2.06%
DCC (DCC) 6,798.00p -2.02%
Next (NXT) 4,682.00p -1.95%
Johnson Matthey (JMAT) 2,101.00p -1.87%