FTSE 100 movers: Direct Line downgrade hits rivals, yields hit life insurers

Tue 13 Mar 2018

LONDON (SHARECAST) - (ShareCast News) - London's blue chips stocks were heading lower on Tuesday afternoon, as the pound rose and yields fell.
Financial stocks led the decline, with a life insurers hit by falling yields and non-life insurers hit by broker commentary.

The pound's rise puts pressure on the FTSE 100's heavy representation of overseas earnings.

Global financials were lower as yields took a hit as the dollar fell on news that US Secretary of State Rex Tillerson had got the White House axe.

Direct Line was downgraded by Deutsche Bank as the motor insurer is perceived to be "entering a transitory phase" where "the benefits of positive strategic initiatives may still be a couple of years away from showing tangible benefit". Analysts also pointed to short-term headwinds from higher claims inflation in the home insurance segment and pricing uncertainty in the motor segment due to 'whiplash reforms', which also hit others in the sector such as Admiral.

Copper miner Antofagasta was top of the risers after full year results saw EBITDA and underlying EPS slightly missing average estimates but the dividend come in much higher than expected. The world's largest copper producer increased its annual dividend 177% to 50.9p as cash flow surged on the group's highest operating margin in five years.

Market Movers

FTSE 100 (UKX) 7,183.44 -0.43%
FTSE 250 (MCX) 19,982.69 -0.67%
techMARK (TASX) 3,359.07 -0.92%

FTSE 100 - Risers

Antofagasta (ANTO) 909.60p 2.46%
Glencore (GLEN) 375.65p 1.79%
easyJet (EZJ) 1,630.50p 1.43%
GKN (GKN) 430.10p 1.41%
Randgold Resources Ltd. (RRS) 6,058.00p 1.20%
DCC (DCC) 6,865.00p 1.18%
Ferguson (FERG) 5,306.00p 1.03%
Hammerson (HMSO) 458.50p 0.99%
Ashtead Group (AHT) 2,015.00p 0.88%
Bunzl (BNZL) 2,061.00p 0.78%

FTSE 100 - Fallers

WPP (WPP) 1,163.00p -2.68%
Direct Line Insurance Group (DLG) 384.00p -2.34%
St James's Place (STJ) 1,126.00p -2.09%
Admiral Group (ADM) 1,909.00p -1.88%
3i Group (III) 906.80p -1.76%
BT Group (BT.A) 230.98p -1.71%
British American Tobacco (BATS) 4,183.50p -1.68%
Imperial Brands (IMB) 2,510.50p -1.66%
ITV (ITV) 149.60p -1.61%
Unilever (ULVR) 3,819.50p -1.60%

FTSE 250 - Risers

Ferrexpo (FXPO) 301.20p 3.15%
IG Group Holdings (IGG) 824.50p 3.06%
Millennium & Copthorne Hotels (MLC) 568.00p 2.53%
Senior (SNR) 308.80p 2.52%
Aggreko (AGK) 736.60p 2.45%
Vedanta Resources (VED) 780.20p 2.39%
Polymetal International (POLY) 789.20p 2.31%
Melrose Industries (MRO) 217.00p 1.64%
Dechra Pharmaceuticals (DPH) 2,642.00p 1.62%
888 Holdings (888) 298.80p 1.56%

FTSE 250 - Fallers

Greencore Group (GNC) 139.15p -23.80%
TP ICAP (TCAP) 489.00p -9.34%
Computacenter (CCC) 1,036.00p -8.16%
Inmarsat (ISAT) 383.10p -6.49%
JD Sports Fashion (JD.) 368.00p -4.88%
Capita (CPI) 163.65p -4.16%
Britvic (BVIC) 693.00p -3.55%
Dignity (DTY) 855.50p -3.00%
Hastings Group Holdings (HSTG) 263.20p -2.95%
Paragon Banking Group (PAG) 498.00p -2.83%
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