FTSE 100 movers: Hikma boosted by upgrade; Fresnillo and Randgold lose shine
By Michele Maatouk
Date: Monday 10 Apr 2017
(ShareCast News) - London's FTSE 100 was flat at 7,346.36 in afternoon trade as investors sifted through corporate news and exercised caution amid growing tensions between the US and Russia.
South African private hospital group Mediclinic International was firmer after saying that its Swiss platform, Hirslanden, is expected to take a limited hit in 2018 after the Zurich Cantonal Parliament voted not to approve a proposed levy on privately insured patients treated in listed hospitals.
Mediclinic said the Swiss Federal Government has released proposed adjustments as a transitional solution while healthcare providers and funders continue to negotiate and agree a revised tariff structure.
Hikma Pharmaceuticals got a boost as Numis upgraded the stock to 'buy' from 'add'.
It said that following Mylan's Complete Response Letter, the market is now overly discounting Hikma's prospects for gaining approval of its generic version of GlaxoSmithKline's bestselling asthma drug Advair this year. In addition, the share price is now also heavily discounting the core business, Numis said.
BHP Billiton racked up healthy gains after it said the risks and costs associated with activist investor Elliott Management's proposals outweighed any benefits. Elliott had urged the company's directors to cancel the miner's London listing in a unification with its Australian headquarters and to dispose of its US petroleum business. The hedge fund said these measures would result in shareholders enjoyed a 51% increase in the attributable value of their shares.
Primark owner Associated British Foods, Marks & Spencer and Tesco were all on the front foot after retail analyst Springboard said it expects retail footfall over the Easter weekend to be up 5.4% in the UK thanks to pleasant weather and the timing of payday.
On the downside, precious metals miners Randgold Resources and Fresnillo retreated in tandem with falling gold prices.
AstraZeneca was hit after Jefferies cut the stock to 'hold' from 'buy' saying the company's strategy of disposals and 'externalising' revenues from selling licensing rights to its drugs will hit revenues and earnings more than the market realises.
Risers
Mediclinic International (MDC) 726.50p 3.86%
Hikma Pharmaceuticals (HIK) 1,954.00p 3.72%
BHP Billiton (BLT) 1,321.50p 2.64%
Associated British Foods (ABF) 2,536.00p 2.09%
Marks & Spencer Group (MKS) 343.10p 1.84%
International Consolidated Airlines Group SA (CDI) (IAG) 533.00p 1.81%
St James's Place (STJ) 1,048.00p 1.75%
Croda International (CRDA) 3,539.00p 1.35%
easyJet (EZJ) 1,056.00p 1.25%
Tesco (TSCO) 192.05p 1.24%
Fallers
Randgold Resources Ltd. (RRS) 7,245.00p -2.23%
Fresnillo (FRES) 1,590.00p -2.09%
DCC (DCC) 6,995.00p -1.48%
Johnson Matthey (JMAT) 2,991.00p -1.25%
Coca-Cola HBC AG (CDI) (CCH) 2,055.00p -1.25%
Royal Mail (RMG) 410.20p -1.20%
AstraZeneca (AZN) 4,736.00p -1.20%
Bunzl (BNZL) 2,320.00p -1.11%
Antofagasta (ANTO) 860.00p -1.04%
Provident Financial (PFG) 3,128.00p -0.95%
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