FTSE 100 movers: Fresnillo shines but Burberry dented by downgrade

Thu 10 Jan 2019

LONDON (SHARECAST) - (Sharecast News) - London's FTSE 100 was up 0.1% at 6,916.41 in afternoon trade on Thursday, reversing earlier losses.
Precious metals miner Fresnillo shone as gold prices edged towards the $1,300 level. Oanda analyst Craig Erlam said this level continues to be supportive for the yellow metal, which now looks increasingly likely to break above it.

"It failed to do so again overnight and the dollar paring its losses has seen it lose its edge again today but I think this will only be temporary. Risk appetite improving may slow the ascent but I don't think it will prevent it as long as the dollar remains soft, as expected."

On the downside, BHP was the worst performer on the index as its stock went ex-dividend.

Burberry was in the red after Berenberg cut its rating on the luxury brand to 'hold' from 'buy' as it said growth prospects for it and other luxury stocks face "undoubtedly more downside than upside risk".

Paddy Power Betfair was in the red after gambling software provider GAN signed an extension to its long-standing partnership with the company in the US. The Irish group will provide the platform for PPB's US business, FanDuel, to quickly get its internet casino and sports betting up and running in Pennsylvania and add internet sports betting in West Virginia.

InterContinental Hotels Group was under the cosh even as UBS upped the stock to 'neutral' from 'sell' given the share price decline.

"Previously we rated IHG sell as we felt the trading multiples did not reflect our concerns about a slowing US RevPAR cycle and challenges on the distribution front. During the course of 2018 we saw US RevPAR slow and the trading multiple of IHG contract," the bank said.

"We now feel the trading multiple of the shares more accurately reflects our concerns (over the last 24 months the shares de-rated from circa 15x to circa 12x 12-month EBITDAR) and we upgrade the shares from sell to neutral."

FTSE 100 - Risers

Fresnillo (FRES) 944.20p 2.47%
Sage Group (SGE) 621.60p 2.10%
SSE (SSE) 1,145.55p 1.92%
Intertek Group (ITRK) 5,038.00p 1.70%
Lloyds Banking Group (LLOY) 54.60p 1.47%
Rentokil Initial (RTO) 354.01p 1.46%
United Utilities Group (UU.) 767.20p 1.35%
Compass Group (CPG) 1,675.00p 1.24%
Royal Bank of Scotland Group (RBS) 223.40p 1.13%
Smith & Nephew (SN.) 1,441.00p 1.12%

FTSE 100 - Fallers

BHP Group (BHP) 1,602.80p -6.13%
Burberry Group (BRBY) 1,734.00p -3.13%
NMC Health (NMC) 2,904.00p -2.62%
TUI AG Reg Shs (DI) (TUI) 1,184.00p -1.95%
Paddy Power Betfair (PPB) 6,615.00p -1.85%
InterContinental Hotels Group (IHG) 4,217.00p -1.72%
Rolls-Royce Holdings (RR.) 850.00p -1.71%
Antofagasta (ANTO) 832.20p -1.70%
Associated British Foods (ABF) 2,233.00p -1.54%
Melrose Industries (MRO) 174.05p -1.53%
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