FTSE 100 movers: TUI rallies on update; NMC Health slumps again
London’s FTSE 100 was up 0.8% at 7,504.42 in afternoon trade on Tuesday.
TUI was the standout gainer after the travel company upgraded full-year profits guidance as higher demand at its markets and airlines unit offset costs from the Boeing 737 MAX aircraft grounding. The company forecast underlying earnings before interest and tax of €850m - €1.05bn, compared with €893m it reported in the previous period.
Russ Mould, investment director at AJ Bell, said: "Given the backdrop of travel fears around the coronavirus and pictures of an infected cruise ship all over the news, TUI’s positive news has taken the market by surprise.
"This is a solid update and one certainly helped by the demise of former rival Thomas Cook which has enabled TUI and others to increase market share. However, the message may not be the same in three months’ time if the coronavirus isn’t contained."
JD Sports Fashion was in the green even as the Competition and Markets Authority said its £90m takeover of Footasylum would "substantially" lessen competition. The CMA said its current view is that blocking the deal by requiring JD Sports to sell the Footasylum business may be the only way of addressing its competition concerns.
The stock was higher, however, as JD Sports said it had had a "robust" post-Christmas sales period in its key overseas markets and that earnings for the year to January 2020 were set to be "at least equal" to the top end of current market expectations of between £403m and £434m, after adjusting for IFRS16.
HSBC was boosted by an upgrade to ‘outperform’ from ‘neutral’ at Credit Suisse, while United Utilities was higher after an upgrade to ‘buy’ from ‘underperform’ at Jefferies.
On the downside, NMC Health tumbled after US private equity firm KKR said it had not made any bid approach to the troubled Middle East healthcare company.
FTSE 100 - Risers
TUI AG Reg Shs (DI) (TUI) 957.80p 11.89%
International Consolidated Airlines Group SA (CDI) (IAG) 627.00p 3.40%
JD Sports Fashion (JD.) 870.60p 2.91%
Flutter Entertainment (FLTR) 8,628.00p 2.47%
HSBC Holdings (HSBA) 592.20p 2.40%
Standard Chartered (STAN) 645.60p 2.38%
Ocado Group (OCDO) 1,245.50p 2.34%
Severn Trent (SVT) 2,619.00p 2.30%
United Utilities Group (UU.) 1,010.50p 2.26%
Melrose Industries (MRO) 244.30p 2.09%
FTSE 100 - Fallers
NMC Health (NMC) 777.60p -16.04%
Evraz (EVR) 382.50p -1.72%
Compass Group (CPG) 1,971.50p -0.93%
Bunzl (BNZL) 1,975.50p -0.58%
SEGRO (SGRO) 908.80p -0.55%
GlaxoSmithKline (GSK) 1,711.00p -0.38%
Burberry Group (BRBY) 1,989.50p -0.33%
Rolls-Royce Holdings (RR.) 689.80p -0.32%
AstraZeneca (AZN) 7,695.00p -0.19%
Unilever (ULVR) 4,676.50p -0.19%