FTSE 100 movers: 3i gains on results; Burberry out of fashion

Thu 16 May 2019

LONDON (SHARECAST) - (Sharecast News) - London's FTSE 100 was up 0.6% at 7,339.00 in afternoon trade on Thursday, boosted by a weaker pound.
3i Group was on the front foot as it reported a total return of 18% for last year, while Anglo American gained after it won approval for the construction of a new custom-built diamond recovery vessel.

Anglo was also up as Morgan Stanley said it was remaining 'overweight' the stock as it sees "material" upside again following the pull-back. It said Anglo offers a balanced commodity exposure, reasonable growth, technology leadership, strategic assets, the ability to offset inflation and an attractive valuation.

Burberry was under the cosh as it said underlying profit was unchanged last year as cost cuts offset a decline in revenue at the luxury clothing brand. Adjusted operating profit for the year to the end of March fell 6% to 438m but excluding currency movements profit was flat. Revenue at constant exchange rates fell 1% to 2.72bn and operating costs fell 1% to 1.42bn.

Ian Forrest, investment research analyst at The Share Centre, said the results are being seen as "disappointing", with weaker sales growth, especially in its key growth markets in Asia. However, he said investors should not overlook the positives in the statement.

"The company confirmed its previous full-year guidance, raised its target for cost savings and announced a 150mn share buyback along with an increase in the dividend. The increased use of social media such as Instagram should also help to drive sales with younger consumers.

"We continue with our 'hold' recommendation for investors who are seeking a balanced return and willing to accept a medium to higher level of risk."

National Grid retreated as it said full-year profit declined by nearly a third, while TUI was in the red as small-cap peer Thomas Cook tanked after saying that losses widened in the first half of the year to 1.5bn from 303m.

It highlighted "challenging" trading conditions and confirmed that several bids had been received for all and part of its airline.

Tesco was in the red as its stock went ex-dividend, while budget airline EasyJet saw its shares fly lower ahead of its half-year results on Friday.

FTSE 100 - Risers

Hiscox Limited (DI) (HSX) 1,661.00p 3.55%
Admiral Group (ADM) 2,119.00p 3.27%
Hargreaves Lansdown (HL.) 2,416.00p 3.12%
Experian (EXPN) 2,301.83p 2.81%
Prudential (PRU) 1,673.50p 2.73%
Direct Line Insurance Group (DLG) 325.70p 2.65%
3i Group (III) 1,081.00p 2.56%
Sage Group (SGE) 733.46p 2.38%
Phoenix Group Holdings (PHNX) 696.10p 2.37%
Anglo American (AAL) 1,958.40p 2.32%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,821.00p -5.23%
United Utilities Group (UU.) 775.40p -3.32%
National Grid (NG.) 815.10p -3.29%
TUI AG Reg Shs (DI) (TUI) 794.80p -3.03%
easyJet (EZJ) 966.20p -2.78%
Marks & Spencer Group (MKS) 266.80p -2.77%
Severn Trent (SVT) 1,912.50p -2.75%
Tesco (TSCO) 238.50p -2.13%
International Consolidated Airlines Group SA (CDI) (IAG) 497.50p -2.07%
Melrose Industries (MRO) 178.45p -1.95%
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