|CATEGORY: RISERS AND FALLERS
Thu 31 Aug 2017
LONDON (SHARECAST) - (ShareCast News) - London's FTSE 250 was up 0.7% to 19,757.73 in afternoon trade on Thursday.
Serco surged after UBS upgraded its stance on the stock to 'buy' from 'neutral' as it said it was turning positive on the UK outsourcing sector following a 50% underperformance since 2013. The bank said it sees an attractive risk/reward in Serco, with a strong sales pipeline and margin recovery secure. "Execution on turnarounds can drive a sustainable profit recovery that is not priced in at current valuations," it said.
Restaurant Group also racked up impressive gains as it said sales deteriorated as the first half of the year wore on, but the Frankie & Benny's and Chiquito owner served up a flat dividend as it reported early signs of volume improvement and broke back into the black. Analysts also pointed to relief that the company did not issue a profit warning.
Evraz and Kaz Minerals got a boost from encouraging Chinese manufacturing data, while Dunelm was in the black, clawing back some of the heavy losses seen in the previous session following the shock departure of chief executive John Browett.
Recruiter Hays was also trading higher after posting a rise in full-year profit as it announced its first special dividend following a solid performance in Europe and a stabilisation in the UK.
Going the other way, Melrose Industries was under the cosh after swinging to a profit in the first half of the year but warning that conditions at its Brush unit had worsened.
Ultra Electronics was also on the back foot after saying it has expanded its relationship with Jupitor Corporation of Japan to support the introduction of its latest technologies on major Japanese aerospace programmes.
Stagecoach, Hochschild Mining and Centamin fell as their stock went ex-dividend.
Serco Group (SRP) 117.90p 8.56%
Restaurant Group (RTN) 343.50p 7.98%
TP ICAP (TCAP) 498.90p 7.41%
Evraz (EVR) 333.70p 5.77%
Kaz Minerals (KAZ) 858.00p 4.13%
St. Modwen Properties (SMP) 353.80p 3.30%
Millennium & Copthorne Hotels (MLC) 463.80p 2.88%
Dunelm Group (DNLM) 589.50p 2.79%
Hays (HAS) 177.30p 2.60%
Greene King (GNK) 685.00p 2.39%
Melrose Industries (MRO) 218.50p -4.71%
Stagecoach Group (SGC) 166.00p -3.66%
Polymetal International (POLY) 910.50p -2.67%
Cairn Energy (CNE) 169.40p -2.36%
Elementis (ELM) 268.60p -2.22%
Ted Baker (TED) 2,453.00p -2.15%
Hochschild Mining (HOC) 281.20p -2.06%
Spire Healthcare Group (SPI) 323.00p -1.88%
Centamin (DI) (CEY) 152.70p -1.36%
Ultra Electronics Holdings (ULE) 1,840.00p -1.34%