FTSE 100 movers: Tui hit by Thomas Cook warning; Coca-Cola fizzes higher
London's FTSE 100 was down 0.6% to 6,992.95 in afternoon trade on Tuesday.
Housebuilders retreated amid worries about Brexit, with Barratt, Persimmon, Taylor Wimpey and Berkeley Group all in the red.
TUI was also on the back foot as FTSE 250 rival Thomas Cook tumbled after it withdrew its dividend and cut its annual profits guidance for the third time this year. The company, having only just issued a second profit warning in September, said its final result was expected to be around £30m lower than previously guided due to a number of legacy and non-recurring charges.
On the upside, Coca-Cola HBC was the standout gainer as UBS double-upgraded the stock to 'buy' from 'sell' and hiked the price target to 2,650p from 2,050p saying best-in-class growth and balance sheet optionality are no longer priced in.
UBS said that having fallen 19% since July, the shares now present an attractive entry point for one of the best growth stories in the staples sector. It highlighted organic sales growth at the top end of the sector, scope for ongoing EBIT margin expansion beyond its 2020 target of 11% and balance sheet optionality given its low leverage (net debt /EBITDA 0.8x).
In addition, the bank said that in the absence of any M&A, a special dividend is "most likely".
Intertek was in the green as it said group revenue rose 4.8% at constant exchange rates to £2.31bn and 0.5% at actual rates in the 10 months to October 31.
The quality assurance reaffirmed its 2018 forecast of good organic revenue growth with moderate margin progression at constant currency and strong cash conversion.
FTSE 100 - Risers
Coca-Cola HBC AG (CDI) (CCH) 2,371.00p 4.50%
Ocado Group (OCDO) 818.40p 3.62%
Centrica (CNA) 136.45p 2.75%
Intertek Group (ITRK) 4,734.50p 1.90%
Unilever (ULVR) 4,259.50p 1.45%
Admiral Group (ADM) 2,064.00p 1.43%
Rentokil Initial (RTO) 327.80p 1.33%
National Grid (NG.) 837.20p 1.32%
British American Tobacco (BATS) 2,749.00p 1.18%
Marks & Spencer Group (MKS) 308.50p 1.15%
FTSE 100 - Fallers
GVC Holdings (GVC) 765.00p -5.44%
TUI AG Reg Shs (DI) (TUI) 1,195.00p -4.40%
Barratt Developments (BDEV) 492.40p -3.07%
Persimmon (PSN) 2,105.00p -3.04%
Johnson Matthey (JMAT) 2,993.00p -2.73%
easyJet (EZJ) 1,205.50p -2.63%
Antofagasta (ANTO) 787.00p -2.33%
Taylor Wimpey (TW.) 147.70p -2.28%
Berkeley Group Holdings (The) (BKG) 3,442.00p -2.19%
Royal Bank of Scotland Group (RBS) 220.50p -2.13%