FTSE 100 movers: Miners rally as copper gains; Schroders boosted by Barclays note

Fri 12 Apr 2019

LONDON (SHARECAST) - (Sharecast News) - London's FTSE 100 was up 0.1% at 7,426.89 in afternoon trade on Friday, finding little support from impressive earnings across the pond from bellwethers JPMorgan Chase and Wells Fargo.
Miners Glencore and Antofagasta rose as copper prices advanced. The sector was also boosted as Barclays recommended investors stay long metals and mining for now.

"An environment of Fed pausing, China credit cycle turning, commodity-intensive stimulus under way and potential positive progress on trade is a 'Goldilocks'backdrop for the sector, in our view. This is being assisted by physical shortages of iron ore, the most important earnings driver for the sector (42% of EBITDA).

"Despite the strong sector rally year-to-date we believe investors should stay long as recent inflection in Chinese PMIs and effects of stimulus are likely to be seen in metals demand with a 3-6 month lag."

Barclays wasn't particularly positive on Glencore or Antofagasta in the note, however. It retained its 'overweight' rating on Glencore as said the stock is in need of a strategy re-boot in order to re-rate. As far as underweight-rated ANTO is concerned, the bank cited a very expensive valuation and almost zero fee cash flow generation over the next five years at spot prices.

Schroders was in the green as Barclays initiated coverage of the stock at 'overweight' as part of a note on UK asset managers. It said the company's diversified business model should provide a defence against the worst of the structural challenges of the industry.

"We expect its focus on a range of growth areas both to support AUM growth and potentially sustain margin levels. The stock maintains its strong balance sheet and continues to be more dynamic with this balance sheet than in the past, supporting further AUM growth and the broader development of the business."

Just Eat was on the rise even as Peel Hunt highlighted the fact that Uber Eats is a "continuing and growing threat" to the company following news of Uber's IPO this week.

On the downside, there didn't seem to be much rhyme or reason behind the big losers, with Relx and Hikma the top fallers.

FTSE 100 - Risers

Standard Chartered (STAN) 672.00p 3.48%
Smurfit Kappa Group (SKG) 2,326.00p 3.29%
Smith (DS) (SMDS) 354.50p 2.96%
Glencore (GLEN) 331.43p 2.71%
Barclays (BARC) 167.64p 2.42%
TUI AG Reg Shs (DI) (TUI) 793.32p 2.31%
Just Eat (JE.) 735.60p 2.02%
Schroders (SDR) 3,058.00p 2.00%
Antofagasta (ANTO) 1,018.00p 1.70%
Melrose Industries (MRO) 193.00p 1.47%

FTSE 100 - Fallers

Relx plc (REL) 1,634.50p -1.95%
Hikma Pharmaceuticals (HIK) 1,752.50p -1.77%
GlaxoSmithKline (GSK) 1,541.20p -1.56%
Burberry Group (BRBY) 1,927.50p -1.56%
Unilever (ULVR) 4,329.48p -1.45%
Fresnillo (FRES) 787.60p -1.35%
National Grid (NG.) 814.40p -1.34%
Halma (HLMA) 1,727.50p -1.12%
Smith & Nephew (SN.) 1,479.50p -1.10%
AstraZeneca (AZN) 5,953.00p -1.08%
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