FTSE 100 risers: Next stock up with events, Fresnillo caves in
Fashion retailer Next gave shareholders something to smile about, reporting 4.0% growth in sales despite its difficult comparators with the summer of 2018 and with Next brand growth of 3.8% and 2.2% in May and June, respectively, versus the declines seen at other retailers, leading the company to nudge its full-year guidance for profits before tax up by 1.0% to £725.0m.
Nonetheless, given the sharp share price reaction to the news, analysts at ShoreCap said the stock's valuation had caught up with events, leading them to reiterate their recommendation to 'hold'.
Rentokil Initial was also in play on Wednesday, with investors pushing the company's shares to a fresh record high after the pest control business reported an increase in both revenues and profits during for the first half of its trading year, prompting the group to reiterate its full-year guidance.
Heading the other way, investors were cashing in their shares of precious metals miner Fresnillo following its poor update the day before.
Taylor Wimpey was another standout faller, with Michael Hewson at CMC Markets UK explaining to clients that: "Current trading continues to look positive with forward sales at 87%, and a solid order book, however the slide in the share price appears to be as a result of investors focussing on the rise in build cost inflation which is expected to rise to 5% in 2019, from 3.5% in 2018, which could well shrink margins and profits further."
To take note of, stocks in Barclays and RBS was also headed lower ahead of updates from the two lenders scheduled for Thursday and Friday, respectively.
FTSE 100 - Risers
Next (NXT) 6,050.00p 7.73%
Rentokil Initial (RTO) 431.00p 4.56%
Centrica (CNA) 75.62p 2.77%
International Consolidated Airlines Group SA (CDI) (IAG) 425.10p 2.48%
Antofagasta (ANTO) 940.80p 2.04%
Just Eat (JE.) 762.60p 1.68%
London Stock Exchange Group (LSE) 6,592.00p 1.35%
BAE Systems (BA.) 549.00p 1.18%
CRH (CRH) 2,738.00p 1.15%
Auto Trader Group (AUTO) 543.20p 0.93%
FTSE 100 - Fallers
Fresnillo (FRES) 601.80p -7.93%
Taylor Wimpey (TW.) 162.96p -7.69%
St James's Place (STJ) 990.00p -5.08%
Rolls-Royce Holdings (RR.) 862.02p -3.27%
British Land Company (BLND) 509.40p -3.12%
Land Securities Group (LAND) 799.80p -3.10%
Anglo American (AAL) 2,027.00p -3.01%
TUI AG Reg Shs (DI) (TUI) 817.00p -2.83%
Whitbread (WTB) 4,520.00p -2.71%
Lloyds Banking Group (LLOY) 53.59p -2.71%