FTSE 250 movers: Redrow, Clarkson lead mid-caps lower

Tue 12 Sep 2017

LONDON (SHARECAST) - (ShareCast News) - London's FTSE 250 index was in the red on Tuesday afternoon, led by an assortment of fallers from different sectors.
On a day of subsiding housebuilding stocks, Redrow led the retreat after chairman Steve Morgan sold 25.9m of his shares at 590p each, representing around 7% of the issued share capital, coinciding with sales at Cairn Homes and Berkeley Group.

Investors wondered if directors were calling the top of the market, with the sector also coming under the cosh from a downbeat note from Bank of America Merrill Lynch that said the outlook "the evaporation of house price inflation is likely to nibble away at confidence".

Fellow FTSE 250 constituent Bellway was dragged down amid the gloom, but analysts at Jefferies were less negative: "When Tony Pidgley and Steve Morgan sell shares in the companies they founded, investors take notice and ask if the silverback alpha males in the sector are calling the top of the market. We do not think so."

Clarkson was down after ship orders fell 40% year-on-year in August to 33 after July's 44 was up 26% on the year. Analysts at Citi noted that the third quarter orders thus far were running lower sequentially at an average 40 ships per month versus 80 in the second and 58 in the first.

On the upside, July contracting has been revised up by 52% to 44 ships from 29 previously and Citi noted the upward revisions recurring regularly at Clarkson, with the next release due in the first week of October. "In short, the recovery seems to be on track."

JD Sports Fashion shares jogged higher after reporting profits up by a third driven mainly by 29% growth in sports and a first-time contribution from Go Outdoors.

Investec analysts said this, "another excellent multi-channel H1 performance", had driven a 4.5% upgrade to profit forecasts for the next two years. "In our view, this should put to rest concerns over European market growth potential. JD is an undervalued roll-out story with potential to deliver sustainable double-digit growth."

Iron ore specialist Ferrexpo was up along with several other miners that were being lifted by higher iron ore and coking coal prices, while base metals and precious metals traded lower.

Ascential was hit by a downbeat Barclays note, which initiated coverage with an 'underweight' and a 330p price target, after the shares have risen 40% since the start of the year. While acknowledging strong results last year, the removal of overhang from original sponsors, and the successful print disposal, analysts think the price inflation has "run too far" and warned of "further risks at Cannes and Medialink as ad agencies suffer", worries about cyclicality and three valuation methodologies that all point to downside to the current price. "Beyond Cannes, we cannot point to major "cracks" in the story. But with exposure to a handful of assets, and sentiment positive, we see unfavourable risk/reward.

A day after announcing an extensive boardroom reshuffle, Carillion rallied, as its shares have done three times this month whenever they have fallen below 42p.

Petra Diamonds bounced back for a second day as analysts and investors caught up with the previous day's announcement. Barclays said the initial share price drop highlighted that market remains nervous around operating and political risks in Tanzania, which "is understandable" given the 65% fall in Acacia Mining shares since the government of the east African country banned exports of concentrates in March.

Market Movers

FTSE 100 (UKX) 7,403.54 -0.14%
FTSE 250 (MCX) 19,675.72 -0.09%
techMARK (TASX) 3,470.78 0.15%

FTSE 250 - Risers

JD Sports Fashion (JD.) 371.70p 8.49%
Ferrexpo (FXPO) 324.40p 4.17%
Carillion (CLLN) 44.86p 3.94%
Restaurant Group (RTN) 313.50p 3.64%
AA (AA.) 168.70p 3.62%
Dunelm Group (DNLM) 615.50p 3.36%
Vectura Group (VEC) 100.50p 3.24%
Evraz (EVR) 316.60p 3.13%
Sophos Group (SOPH) 564.50p 2.73%
Virgin Money Holdings (UK) (VM.) 269.70p 2.66%

FTSE 250 - Fallers

Redrow (RDW) 580.00p -8.30%
Clarkson (CKN) 2,720.00p -4.36%
Ascential (ASCL) 365.10p -2.80%
Daejan Holdings (DJAN) 5,860.00p -2.58%
Assura (AGR) 64.50p -2.27%
Homeserve (HSV) 776.50p -2.02%
Unite Group (UTG) 674.50p -1.96%
Thomas Cook Group (TCG) 120.00p -1.96%
Melrose Industries (MRO) 207.70p -1.94%
Kier Group (KIE) 1,152.00p -1.87%
ASCL - Ascential

Latest Prices

Name Price %
Ascential 445.60p +3.87%
Clarkson 2,635.00p +3.74%
Ferrexpo 196.70p +4.46%
Redrow 553.00p +1.65%
FTSE 250 21,010 +1.35%
FTSE 350 4,285 +1.61%
FTSE All-Share 4,230 +1.57%
Household Goods & Home Construction 16,705 +2.11%
Industrial Metals & Mining 4,798 +1.77%
Industrial Transportation 3,421 +1.22%
Media 8,255 +1.16%