FTSE 250 movers: Gold miners rally; Softcat hit by downgrade

Tue 29 Aug 2017

LONDON (SHARECAST) - (ShareCast News) - London's FTSE 250 was down 0.8% to 19,517.59 in afternoon trade on Tuesday as investors reacted to news of North Korea's missile launch over Japan.
Hochschild, Acacia and Centamin racked up healthy gains, helped along by a rally in gold prices as North Korea's missile strike over Japan prompted a flight to safe havens.

Restaurant Group was in the red as Peel Hunt cut its recommendation on the stock to 'hold' from 'reduce' ahead of Thursday's first-half results, cutting the price target to 300p from 350p. The brokerage expects pre-tax profit to be down 29% to 26.1m despite some favourable footfall trends and cost savings and before the full impact of significant price reductions.

"In our view, the risk to 2018E forecasts is on the downside and the recovery period will be longer than expected," Peel said. It added that restaurants are the weakest sector in leisure, needing 2.5% to 3.5% like-for-like sales to hold profits against a backdrop of oversupply and in many cases, overpricing.

Weir Group gushed lower on the back of oil price weakness and concerns about the impact of Hurricane Harvey on fracking.

Softcat was under pressure after Berenberg downgraded the stock to 'hold' from 'buy' as the shares close in on its unchanged 425p price target. "While we feel its premium rating is deserved, and there is scope for cash returns also, we believe the shares are fairly priced at these levels, particularly given that we are unsure of strategic changes that could come with a new CEO."

Oilfield services company Hunting retreated as it announced the appointment of John Glick as non-executive chairman of the board with effect from 1 September, when Richard Hunting will step down after 26 years as chairman.


Hochschild Mining (HOC) 289.90p 8.45%
Acacia Mining (ACA) 215.50p 7.00%
Evraz (EVR) 299.80p 2.88%
Millennium & Copthorne Hotels (MLC) 461.70p 2.35%
Vedanta Resources (VED) 839.50p 2.13%
Aggreko (AGK) 862.50p 1.89%
Centamin (DI) (CEY) 156.10p 1.83%
Kaz Minerals (KAZ) 827.50p 1.41%
Redrow (RDW) 609.50p 1.33%
Polymetal International (POLY) 958.00p 1.32%


Vectura Group (VEC) 106.40p -4.14%
Weir Group (WEIR) 1,744.00p -3.81%
Spectris (SXS) 2,338.00p -3.51%
Softcat (SCT) 396.60p -3.39%
Hunting (HTG) 388.80p -3.31%
Restaurant Group (RTN) 312.60p -3.19%
Cairn Energy (CNE) 174.30p -3.11%
Lancashire Holdings Limited (LRE) 673.50p -3.02%
IMI (IMI) 1,126.00p -3.01%
TBC Bank Group (TBCG) 1,558.00p -2.93%
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