FTSE 250 movers: ConvaTec dented by downgrade; Vesuvius bubbles higher
London’s FTSE 250 was down 0.1% at 21,865.86 in afternoon trade on Monday.
Medical products maker ConvaTec was knocked lower by a downgrade to ‘underweight’ from ‘neutral’ at JPMorgan, which also cut the price target 168p from 171p as it pointed to an unattractive risk/reward.
Outsourcer Capita was hit by a downgrade to ‘sell’ from ‘neutral’ at UBS, following a re-rating of more than 50%.
The bank, which lifted its price target to 140p from 130p, said: "Capita is undergoing a multi-year turnaround, but a significant re-rating through 2019 and consensus already appear to price in management achieving targets this year."
Going the other way, molten metal flow engineer Vesuvius was the standout gainer as Berenberg named it among its top picks in the UK industrials sector.
"We believe the Vesuvius shares are poised for a significantly stronger year," it said. "We expect earnings to be supported by an end to the inventory destocking cycle, the delivery of self-help cost savings, a favourable raw material environment and a bottoming-out of market weakness."
It also said the balance sheet offers the possibility of in-fill acquisitions.
Housebuilder Redrow was on the front foot after the latest data from Rightmove showed that asking prices for UK houses rose at their fastest pace on record for the month in January, with sentiment boosted by the outcome of the general election.
House prices were up 2.3% on the month, marking the largest price rise recorded at this time of the year since the Rightmove house price survey began in 2002. Prices had fallen 0.9% in December. This pushed the annual rate of increase to 2.7%, which is the highest level since July 2017. Prices had risen 0.8% the month before.
Sirius Minerals was higher after agreeing to be bought by Anglo American for 5.5p a share in cash, in a deal that values the fertiliser maker at £404.9m.
FTSE 250 - Risers
Vesuvius (VSVS) 470.20p 3.34%
Britvic (BVIC) 903.00p 3.26%
Redrow (RDW) 797.00p 2.97%
Contour Global (GLO) 205.00p 2.50%
Sirius Minerals (SXX) 5.53p 2.41%
Wood Group (John) (WG.) 401.50p 2.11%
QinetiQ Group (QQ.) 370.40p 2.04%
Equiniti Group (EQN) 222.80p 1.64%
Intermediate Capital Group (ICP) 1,698.00p 1.62%
Drax Group (DRX) 286.40p 1.56%
FTSE 250 - Fallers
Barr (A.G.) (BAG) 554.00p -2.98%
Elementis (ELM) 137.80p -2.89%
Just Group (JUST) 70.80p -2.81%
Convatec Group (CTEC) 207.00p -2.73%
Hammerson (HMSO) 258.60p -2.45%
Capita (CPI) 168.20p -2.41%
Aston Martin Lagonda Global Holdings (AML) 441.50p -2.32%
Playtech (PTEC) 377.60p -2.28%
SSP Group (SSPG) 669.00p -2.05%
Bank of Georgia Group (BGEO) 1,549.00p -2.02%