FTSE 100 movers: WPP, TUI and miners lead gains
Blue chips stocks were on the front foot on Thursday, with the FTSE 100 edging upwards thanks to a mix of stocks across sectors.
After being one of the worst performers the previous day, advertising behemoth WPP bounced back well on Thursday.
The advertising agency's shares took a nosedive on Wednesday on reports that the US Department of Justice was investigating the price fixing of contracts for business commercials.
TUI impressed with its full year results statement, with the Anglo-German travel and tourism group laying out its earnings growth outlook towel for another two years.
TUI, which reported another year of strong growth in underlying EBITA once adjusted for disposals and currency movements, reiterated that it expected at least 10% growth in underlying EBITA not just for 2017 but at least double-digit growth through to 2019.
"We still have a strong preference for TUI over Thomas Cook between the travel agents and this is supported not only in the results and the outlook commentary, but in the bookings for next year, which appear to be much stronger," said analysts at Berenberg.
A handful of mining stocks led the resources sector higher thanks to better than expected Chinese trade data, with Rio Tinto and Anglo American on the leaderboard.
Glencore was out in front though as the Russian government confirmed that it, along with the Qatar Investment Authority, was taking a 19.5% stake in state-owned Rosneft for €10.2bn.
"This is a bold decision given that Glencore’s problems over a year ago were as a result of taking on too much debt, though they have taken steps to at least halve that in the last 12 months," said analyst Michael Hewson at CMC Markets.
Precious metals producer Polymetal International, which after losing a quarter of its value in recent months will next Friday be demoted from the benchmark as part of the FTSE latest quarterly reshuffle, was buffed up to a brighter gleam by its announcement that a special dividend of 15 cents per share would be paid just after Christmas.
In light of its current free cash and future investment requirements, directors were happy to shell out the $64m aggregate payment, which brings total dividends declared for the financial year to 24 cents per share, or $103m.
Capita was easily the biggest faller and cannot be long for the blue chip index, with its shares falling below 500p for the first time in a decade to send it market cap not far off £3bn having begun the year valued at around £8bn.
Capita said it plans to slash 2,000 jobs and offload the majority of its Asset Services division and a small number of other 'non-core' businesses, in order to become leaner, cut debt and focus fully on business process outsourcing. The group also cut its full year guidance for underlying profit before tax to "at least £515m", down from its previously lowered range of £535-555m, and said the headwinds affecting the business are expected to produce a similar trading performance in the full-year 2017.
FTSE 100 - Risers
WPP (WPP) 1,721.00p 4.49%
TUI AG Reg Shs (DI) (TUI) 1,100.00p 3.38%
International Consolidated Airlines Group SA (CDI) (IAG) 449.40p 3.38%
London Stock Exchange Group (LSE) 2,767.00p 2.98%
Polymetal International (POLY) 775.50p 2.85%
AstraZeneca (AZN) 4,109.50p 2.56%
Glencore (GLEN) 304.00p 2.44%
ITV (ITV) 181.60p 2.31%
Rio Tinto (RIO) 3,295.50p 2.30%
Sky (SKY) 789.50p 2.13%
FTSE 100 - Fallers
Capita (CPI) 485.20p -13.97%
Standard Chartered (STAN) 666.50p -2.66%
Royal Mail (RMG) 461.40p -2.45%
Babcock International Group (BAB) 937.00p -2.19%
Rolls-Royce Holdings (RR.) 659.50p -1.93%
Next (NXT) 4,875.00p -1.67%
Prudential (PRU) 1,623.50p -1.55%
Dixons Carphone (DC.) 353.50p -1.26%
SSE (SSE) 1,481.00p -1.13%
Barratt Developments (BDEV) 470.10p -1.09%