FTSE 100 movers: Miners dip, ITV tops list
Miners dragged London's FTSE 100 index lower on Friday but the worst of its losses were being erased by late afternoon.
Miners were down again as copper and zinc prices wallow at 11-month lows, hitting the likes of Antofagasta and Anglo American.
Mexico-based Fresnillo was lower with the price of gold has slumped in recent weeks despite the mounting trade tensions that might be thought to prompt a flight to the perceived save haven of the yellow metal.
Capital Economics was optimistic on a longer term view. "While we expect gold to remain under pressure in the short term, the longer-term prospects for prices are much brighter," the said.
Direct Line skidded lower after analysts Barclays downgraded the stock to ‘equal weight’ from ‘underweight’ and cut its target price from 420p to 357p. Analysts noted that the partial reversal in Ogden and the potential for whiplash reform has resulted in pricing falling 8-9% from the peak. However it was not all negative for Direct Line, with analysts seeing it "well positioned for the current soft market environment through its diversification and prudent underwriting approach, as well as balance sheet reserves that should allow further reserve releases”.
The analysts reiterated an 'underweight' stance for Admiral.
AB Foods fell for the second day after its third-quarter trading update as investors and analysts continued to readjust expectations for this year and next.
Since speaking with management, broker Shore Capital said they were tweaking down full year expectations and downgrading 2019 earnings per share by circa 7% to 133.4p which would be broadly flat year-on-year. On these revised forecasts, ABF stock is trading on a September 2019 p/e ratio of 19.5 times and an EBITDA multiple of 9.9 times.
Analysts at Deutsche Bank cut their target price to 3,100p from 3,300p as they also cut earnings forecasts but reiterated a ‘buy’ on the stock.
Rolls-Royce was also lower as it agreed to sell its commercial marine business to Norway's Kongsberg for net proceeds of around £350m to £400m.
ITV topped the FTSE 100 leaderboard thanks to an upbeat note from Societe Generale, which upgraded its stance on the shares to 'buy' with a price target of 220p upped from 150p. Analysts said the shares look relatively cheap and noted ITV's potential as a takeover target in light of the takeover battle for Sky.
Market Movers
FTSE 100 (UKX) 7,583.28 -0.26%
FTSE 250 (MCX) 20,579.45 -0.20%
techMARK (TASX) 3,518.37 0.17%
FTSE 100 - Risers
ITV (ITV) 181.40p 4.86%
Severn Trent (SVT) 2,066.00p 2.02%
Just Eat (JE.) 820.20p 1.74%
Vodafone Group (VOD) 190.64p 1.60%
WPP (WPP) 1,187.00p 1.45%
Relx plc (REL) 1,657.00p 1.35%
Coca-Cola HBC AG (CDI) (CCH) 2,570.00p 1.34%
National Grid (NG.) 870.60p 1.34%
United Utilities Group (UU.) 783.00p 1.03%
GVC Holdings (GVC) 1,051.00p 0.96%
FTSE 100 - Fallers
Direct Line Insurance Group (DLG) 328.50p -4.20%
Associated British Foods (ABF) 2,512.00p -3.53%
Fresnillo (FRES) 1,114.50p -3.04%
Rightmove (RMV) 5,088.00p -2.45%
Anglo American (AAL) 1,682.80p -2.25%
Admiral Group (ADM) 1,866.00p -2.25%
Antofagasta (ANTO) 934.80p -1.89%
RSA Insurance Group (RSA) 646.40p -1.82%
Royal Mail (RMG) 489.40p -1.73%
Berkeley Group Holdings (The) (BKG) 3,552.00p -1.66%