FTSE 100 movers: ITV boosted by Morgan Stanley note; Centrica slides on profit warning
By Michele Maatouk
Date: Thursday 23 Nov 2017
(ShareCast News) - London's FTSE 100 was flat at 7,418.82 in afternoon trade on Thursday as investors digested the latest readings on GDP and retail sales.
Broadcaster ITV was the standout gainer as Morgan Stanley said the stock, which it rates at 'overweight', is too cheap. The bank pointed to a number of reasons behind its upbeat stance, including a positive trend in advertising, good audience performances and signs that the new CEO is likely to refresh rather than fundamentally change the company.
Housebuilders Berkeley Group, Barratt Developments, Taylor Wimpey and Persimmon were in the black, bouncing back from losses on Wednesday following the Budget, in which Chancellor Philip Hammond announced a range of new housing policies.
Deutsche Bank said: "We see the share price weakness post the Budget as a buying opportunity and would particularly favour those stocks with shorter land banks such as Barratt who may be greater beneficiaries of an even more opportune land market."
On the downside, Centrica shares plunged to an 18-year low after the energy supplier warned that annual profit would miss market expectations due to poor performance at its business energy supply division.
Engineering support services company Babcock International was in the doldrums as it looked set to be demoted from the FTSE 100 in the next quarterly reshuffle.
Helal Miah, research analyst at The Share Centre said: "The performance of the group over the last year has been disappointing on the back of concerns for support service providers, which was notably highlighted by the problems at Carillion. The group tried to reassure investors in a trading update this week by reporting increases in revenues and pre-tax profit in the first half.
"However, it appears as though it was a failed bid as the shares retreated as a result indicating that concerns remain over its growth targets for next year and continued pressure on the sector as a result of Brexit and contract delays."
National Grid and Vodafone fell as their stock went ex-dividend.
Risers
ITV (ITV) 153.00p 2.82%
Sage Group (SGE) 803.50p 2.75%
Berkeley Group Holdings (The) (BKG) 3,749.00p 2.52%
Barratt Developments (BDEV) 624.00p 2.30%
Taylor Wimpey (TW.) 197.20p 2.02%
Ferguson (FERG) 5,365.00p 1.51%
Persimmon (PSN) 2,663.00p 1.49%
easyJet (EZJ) 1,370.00p 1.48%
Next (NXT) 4,404.00p 1.47%
Ashtead Group (AHT) 1,923.00p 1.21%
Fallers
Centrica (CNA) 139.20p -14.76%
Babcock International Group (BAB) 680.50p -3.54%
National Grid (NG.) 864.89p -2.96%
Johnson Matthey (JMAT) 3,073.00p -2.16%
Morrison (Wm) Supermarkets (MRW) 211.90p -1.81%
SSE (SSE) 1,348.00p -1.39%
Vodafone Group (VOD) 225.80p -1.29%
Sainsbury (J) (SBRY) 228.00p -1.04%
Standard Chartered (STAN) 736.50p -1.02%
3i Group (III) 911.00p -0.92%
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