FTSE 100 movers: Evraz shines; Barclays SFO probe hits stock
Miner Evraz was the shining light on the FTSE 100 risers list on Monday after a the stock received an upgrade to ‘buy’ from Goldman Sachs.
Last month the company reported that consolidated crude steel output was at 3.5m tonnes during the final three months of 2017, unchanged from the prior quarter. Production of steel products, net of re-rolled products on the other hand, was 5.7% higher on the quarter at 3.3m tonnes, following repairs to blast furnace number two at its ZSMK mill.
Goldman said: "We see sustainably high metal spreads in 2018 on synchronized global economic growth, continued policy-induced capacity rationalisation in China and cost-inflation pressure." Analysts updated their estimates and share price target on expected higher commodity prices, upgrading the shares and add them to its 'focus list' for Central & Eastern Europe, Middle East and Africa.
BP was boosted by an upgrade at Societe Generale to 'buy' after last year's strong delivery of growth in volumes, earnings and a seven-times rise in free cashflow that "de-risk BP’s 2021 cash flow targets, raising confidence in its capacity to grow shareholder distribution".
With Deepwater Horizon concerns fading and payments declining to $3bn in 2018, analysts like the 6% sustainable dividend yield, "which can grow" and note that the shares trade at a circa-7% discount to Shell. "This is a high quality undervalued stock, hit by the oil price correction to $64/bbl, but whose portfolio has been reset for material free cash generation at $55/bbl."
Barclays reversed earlier gains to trade a little lower as it emerged that its core banking business was being charged by the Serious Fraud Office over its fundraising deal with Qatar at the height of the financial crisis, adding to the charge already brought against the parent holding company and four former executives.
House builders were all lower after Bank of England deputy governor Gertjan Vlieghe said he could see higher UK interest rates now there was evidence of a rise in wages.
Barratt Developments and Persimmon were both lower on the news.
Market Movers
FTSE 100 (UKX) 7,182.93 1.28%
FTSE 250 (MCX) 19,377.07 0.83%
techMARK (TASX) 3,257.22 0.94%
FTSE 100 - Risers
Evraz (EVR) 346.40p 3.99%
NMC Health (NMC) 3,224.00p 3.67%
DCC (DCC) 6,905.00p 2.75%
Old Mutual (OML) 232.50p 2.60%
Smurfit Kappa Group (SKG) 2,448.00p 2.60%
Glencore (GLEN) 369.85p 2.45%
Shire Plc (SHP) 3,146.00p 2.31%
Prudential (PRU) 1,810.50p 2.29%
Scottish Mortgage Inv Trust (SMT) 437.60p 2.24%
Rio Tinto (RIO) 3,872.50p 2.22%
FTSE 100 - Fallers
Micro Focus International (MCRO) 1,994.00p -0.60%
Severn Trent (SVT) 1,810.50p -0.55%
Barratt Developments (BDEV) 552.00p -0.36%
Marks & Spencer Group (MKS) 285.50p -0.21%
SSE (SSE) 1,188.00p -0.13%
Paddy Power Betfair (PPB) 8,145.25p -0.06%
United Utilities Group (UU.) 693.00p -0.06%
Persimmon (PSN) 2,409.00p -0.00%
National Grid (NG.) 750.20p 0.09%
HSBC Holdings (HSBA) 732.60p 0.11%