FTSE 100 movers: Direct Line boosted by upgrade; Smurfit drops on update
London's FTSE 100 was up 1.9% to 7,273.44 in afternoon trade on Wednesday, bouncing back from heavy losses in the previous session.
Direct Line was among the gainers following an upgrade to 'add' from 'hold' at Peel Hunt.
"Going forward we believe the market will start to appreciate DLG’s diversified pool of earnings and its ability to gradually grow the underlying, own branded, policies in an environment where: (a) rates are starting to plateau in Motor; and (b) Home rates are starting to show signs of stabilisation after a period of softening."
Peel also said the company has a healthy capital buffer that should allow it to reinstate its special dividend policy now that the internal capital model has been approved.
Hammerson racked up healthy gains, led higher by FTSE 250 peer Redrow, which posted record results earlier. In the six months to the end of December 2017, Redrow's pre-tax profit jumped 26% to £176m on group revenue of £890m, up 20% from the same period a year ago, while the interim dividend was lifted to 9p per share from 6p.
On the downside, precious metals miners Fresnillo and Randgold Resources retreated as gold prices declined.
Corrugated packaging company Smurfit Kappa was in the red despite saying that earnings rose 10% in the fourth quarter as strong growth in Europe offset reduced earnings in the Americas. Analysts said the Americas business proved to be more challenging than expected.
Sales, marketing and support services group DCC was also on the back foot even as it said operating profit for the period to 31 December was in line with expectations and ahead of the prior year, and announced the acquisition of US-based Elite, a provider of contract manufacturing and related services to the healthcare and dietary supplements market.
Risers
Scottish Mortgage Inv Trust (SMT) 449.00p 6.35%
Old Mutual (OML) 233.25p 4.74%
3i Group (III) 923.40p 3.10%
Prudential (PRU) 1,826.00p 3.05%
Schroders (SDR) 3,529.00p 2.26%
BP (BP.) 485.40p 2.19%
Direct Line Insurance Group (DLG) 370.00p 2.13%
Relx plc (REL) 1,495.00p 2.05%
Hammerson (HMSO) 465.20p 2.02%
Admiral Group (ADM) 1,838.50p 1.94%
Fallers
Fresnillo (FRES) 1,228.00p -4.44%
Randgold Resources Ltd. (RRS) 6,200.00p -4.00%
Smurfit Kappa Group (SKG) 2,386.00p -2.61%
Micro Focus International (MCRO) 2,009.00p -2.10%
Antofagasta (ANTO) 902.00p -1.16%
Marks & Spencer Group (MKS) 286.90p -0.76%
International Consolidated Airlines Group SA (CDI) (IAG) 613.40p -0.71%
DCC (DCC) 6,990.00p -0.14%
Anglo American (AAL) 1,639.60p -0.09%
Glencore (GLEN) 377.90p -0.04%