FTSE 100 movers: StanChart rallies on Indonesia bank stake sale; AB Foods drops
London’s FTSE 100 was up 1.1% at 7,297.93 in afternoon trade on Thursday after US President Donald Trump tweeted that the US and China were "getting very close to a big deal" on trade.
Standard Chartered was sitting pretty at the top of the index as it agreed to sell a stake in Indonesia’s Bank Permata for $1.3bn.
British Airways and Iberia parent IAG flew higher after Deutsche Bank highlighted it as one of its most preferred picks in the sector for 2020.
JD Sports was up, recovering from heavy losses on Wednesday following reports that its largest shareholder, Pentland Group, had sold 24 million shares in the sportswear retailer.
Berenberg said in a note that the share price slump was a "good buying opportunity" as it hiked its price target on the stock.
"JD Sports has been the star of the retail and sporting goods space, with the shares up by 110% year-to-date," it said. "JD’s exceptional momentum has caught investors’ attention, but valuation has come into sharp focus. With some investors fearing JD has run its course, a common pushback is that the company is ‘another Foot Locker’, which is a global sports-fashion peer that trades at a circa 65% discount to JD."
However, Berenberg argued that the JD premium is justified.
"We think that JD deserves to trade at a healthy premium to Foot Locker. Its greater diversification across product, brand and geography makes it a better-positioned business that is less volatile, faster growing and fundamentally more profitable."
On the downside, Associated British Foods and 3i Group were both lower as their stock went ex-dividend.
FTSE 100 - Risers
Standard Chartered (STAN) 716.80p 3.70%
Flutter Entertainment (FLTR) 8,908.00p 2.77%
Polymetal International (POLY) 1,221.00p 2.61%
Hargreaves Lansdown (HL.) 1,881.50p 2.23%
Prudential (PRU) 1,347.50p 2.20%
International Consolidated Airlines Group SA (CDI) (IAG) 556.20p 1.83%
JD Sports Fashion (JD.) 740.20p 1.82%
WPP (WPP) 978.20p 1.81%
RSA Insurance Group (RSA) 540.60p 1.81%
BAE Systems (BA.) 567.20p 1.65%
FTSE 100 - Fallers
Severn Trent (SVT) 2,215.00p -3.15%
Hikma Pharmaceuticals (HIK) 1,924.50p -2.61%
United Utilities Group (UU.) 850.80p -2.52%
Associated British Foods (ABF) 2,424.00p -2.22%
Ferguson (FERG) 6,698.00p -1.50%
3i Group (III) 1,036.00p -1.29%
Berkeley Group Holdings (The) (BKG) 4,511.00p -1.14%
Antofagasta (ANTO) 903.60p -1.12%
National Grid (NG.) 887.20p -1.09%
Coca-Cola HBC AG (CDI) (CCH) 2,480.00p -0.84%