FTSE 250 movers: Cobham tanks on warning; challengers boosted by Panmure note
London’s FTSE 250 was down 0.5% to 18,724.63 in afternoon trade, with Cobham taking a beating after another profit warning.
Lancashire Holdings rallied after its final results came in ahead of analysts’ expectations.
Challenger banks OneSavings and Shawbrook racked up healthy gains as Panmure Gordon initiated coverage of the stocks at ‘buy’.
Shawbrook is the brokerage’s top pick as it is the most specialised of the lenders and already operates as a major player in more niche markets, including structured & asset finance and consumer lending focused on home improvement loans.
As far as OneSavings is concerned, Panmure said it reckons that despite buy-to-let market concerns, changing demographics and a focus on professional landlords will lead to continued strong loan growth. It added that the stock is undervalued.
On the downside, aerospace and defence group Cobham tanked after it issued a profit warning for 2016 and said it will be hard to meet expectations for this year.
Electricity generation company Drax Group was in the red after it posted its preliminary results for the 2016 calendar year, with core earnings down to £140m from £169m, and underlying earnings less than half what they were in 2015.
CYBG was hit by the same Panmure note that boosted its rivals, as the brokerage started the stock at ‘sell’, saying it reminds it of the low growth and returns and continual restructuring costs recently seen at large UK banks.
Brewin Dolphin was on the back foot as its stock went ex-dividend.
Risers
Lancashire Holdings Limited (LRE) 752.00p 10.51%
AO World (AO.) 159.40p 2.91%
OneSavings Bank (OSB) 376.90p 2.61%
Daejan Holdings (DJAN) 6,630.00p 2.55%
Shawbrook Group (SHAW) 266.50p 2.50%
Pets at Home Group (PETS) 185.50p 2.26%
JRP Group (JRP) 157.70p 2.14%
Vectura Group (VEC) 144.50p 2.05%
Ashmore Group (ASHM) 359.40p 1.73%
Acacia Mining (ACA) 528.00p 1.64%
Fallers
Cobham (COB) 115.40p -14.77%
Drax Group (DRX) 354.10p -6.57%
IP Group (IPO) 175.30p -3.63%
Brewin Dolphin Holdings (BRW) 305.80p -3.38%
SIG (SHI) 109.20p -3.19%
Meggitt (MGGT) 421.20p -3.17%
Millennium & Copthorne Hotels (MLC) 430.40p -2.71%
Morgan Advanced Materials (MGAM) 295.50p -2.57%
CYBG (CYBG) 279.50p -2.41%
PayPoint (PAY) 976.50p -2.35%