FTSE 100 movers: Tesco rallies on results, Centrica hit by downgrade
London's FTSE 100 was down 0.2% to 7,253.67 in afternoon trade on Wednesday as investors digested a slew of UK data and looked ahead to the release of the latest FOMC minutes.
Tesco was the standout gainer after the supermarket giant declared its first year-end dividend since 2014 as it reported a 28% rise in underlying operating profits thanks to improved margins and surging cash generation. Peer Morrisons also rose.
Precious metals miners Fresnillo and Randgold Resources rallied as gold and silver prices gained on the back of a flight to safety amid worries about a possible US military strike in Syria.
Elsewhere, Intertek gained ground as Redburn upgraded its stance on the inspection, product testing and certification company on the back of its exposure to tightening regulation from the International Maritime Organisation.
"Simply, only 6% of the current global fuel supply is compliant with the rules, and if the shipping industry’s sulphur emissions really are going to fall 85% by 2019 to 2020, there is a potential windfall for testers like Intertek," it said.
On the downside, British Gas owner Centrica was under the cosh as HSBC cut the stock to 'reduce' from 'hold' and cut the price target to 120p from 150p. The bank said the company's traditional business is declined, while new business is under threat.
"To rerate its shares, we believe Centrica has to stop losing customers. It is being squeezed by intense competition in both its conventional supply business from players such as Engie and Shell and in its Connected Home business from Amazon and Google."
Budget airline EasyJet flew lower after saying late on Tuesday that it had submitted a revised expression of interest for a restructured Alitalia as part of a consortium. Although the company did not say who was part of the consortium, reports suggested that Air France-KLM and Cerberus Management were in the frame.
Cruise operator Carnival was on the back foot even as it said it was lifting its quarterly dividend by 11%.
Risers
Tesco (TSCO) 224.20p 6.61%
Fresnillo (FRES) 1,273.00p 2.62%
Randgold Resources Ltd. (RRS) 5,858.00p 2.31%
Morrison (Wm) Supermarkets (MRW) 230.20p 2.13%
Intertek Group (ITRK) 4,809.00p 1.89%
Paddy Power Betfair (PPB) 7,220.00p 1.62%
Sainsbury (J) (SBRY) 251.90p 1.33%
Standard Chartered (STAN) 732.30p 1.01%
GKN (GKN) 430.20p 0.99%
Whitbread (WTB) 3,733.00p 0.84%
Fallers
Coca-Cola HBC AG (CDI) (CCH) 2,531.00p -3.62%
Centrica (CNA) 138.90p -2.56%
easyJet (EZJ) 1,602.50p -2.23%
InterContinental Hotels Group (IHG) 4,234.00p -2.06%
International Consolidated Airlines Group SA (CDI) (IAG) 614.40p -2.04%
Mediclinic International (MDC) 570.00p -1.76%
Carnival (CCL) 4,520.00p -1.74%
NMC Health (NMC) 3,380.00p -1.52%
Anglo American (AAL) 1,666.60p -1.50%
Imperial Brands (IMB) 2,490.50p -1.35%