FTSE 100 movers: Sage gains on US business sale; gambling stocks hit by DoJ decision
By Michele Maatouk
Date: Tuesday 15 Jan 2019
(Sharecast News) - London's FTSE 100 was up 0.7% to 6,901.04 in afternoon trade on Tuesday, underpinned by Beijing's latest plans to bolster economic growth, as investors eyed the Commons vote on Theresa May's Brexit deal.
Software company Sage was in the green as it agreed to sell its US-based payroll outsourcing business, Sage Payroll Solutions (SPR), to iSolved for around £78m.
Sage, which had announced back in September that it was putting the business up for sale, said this was part of its strategy to focus on subscription software solutions that are in or have a pathway to the Sage Business Cloud.
Of the total consideration for the sale, £73m is payable in cash on completion and the remaining £5m represents contingent consideration. Sage said it expects to report a statutory profit on disposal of approximately £23m on completion.
On the downside, broadcaster ITV was under the cosh as Liberum removed the stock from its 'most preferred'/'best ideas' list.
GVC Holdings and Paddy Power Betfair were on the back foot after the US Department of Justice called for wider restrictions on all online gambling. The DoJ reversed a 2011 ruling that the only online form of online gambling classed as illegal was sports betting.
The move is a particular blow to UK outfits as several have already made deals to expand into the US market after a May ruling by the Supreme Court appeared to pave the way for legalised sports betting in a number of states, potentially even nationwide.
FTSE 100 - Risers
Ocado Group (OCDO) 896.00p 2.05%
Rolls-Royce Holdings (RR.) 880.20p 1.95%
3i Group (III) 829.80p 1.82%
Smurfit Kappa Group (SKG) 2,200.00p 1.66%
Land Securities Group (LAND) 862.80p 1.46%
Sage Group (SGE) 600.60p 1.45%
Ashtead Group (AHT) 1,890.50p 1.37%
Admiral Group (ADM) 2,055.00p 1.33%
InterContinental Hotels Group (IHG) 4,356.00p 1.33%
National Grid (NG.) 796.90p 1.32%
FTSE 100 - Fallers
ITV (ITV) 131.75p -4.32%
GVC Holdings (GVC) 677.50p -2.52%
Paddy Power Betfair (PPB) 6,120.00p -2.24%
Kingfisher (KGF) 219.50p -2.01%
Standard Life Aberdeen (SLA) 262.65p -1.90%
Schroders (SDR) 2,556.00p -1.62%
Evraz (EVR) 477.00p -1.53%
Royal Bank of Scotland Group (RBS) 229.10p -1.46%
Fresnillo (FRES) 910.60p -1.43%
International Consolidated Airlines Group SA (CDI) (IAG) 595.80p -1.42%
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