FTSE 100 movers: AB Foods rallies on update; ITV dented by downgrade
By Michele Maatouk
Date: Thursday 17 Jan 2019
(Sharecast News) - London's FTSE 100 was down 0.3% at 6,843.47 in afternoon trade on Thursday as investors digested the latest trade tensions between the US and China and continued to keep an eye on Brexit developments.
Broadcaster ITV was under the cosh as Bank of America Merrill Lynch cut its stance on the stock to 'underperform' from 'buy' and slashed the price target to 110p from 210p as it turned more cautious on the European media sector.
Merrill highlighted a decline in TV ad trends. It noted that following three consecutive years of more than 5% growth, the UK TV ad market slowed down to 1% growth in 2016, dropped 2% in 2017 and will end up flat in 2018. The bank expects the TV ad market to drop by 2-3% in 2019/20.
Beyond Brexit-related uncertainty, Merrill reckons the market is mostly hit by online video disruption. It pointed to the launch of Netflix in January 2012, two to three years earlier than in other European countries.
SSE and Ashtead were on the back foot as their stock went ex-dividend.
Going the other way, Primark owner Associated British Foods racked up strong gains as it maintained full-year guidance and reported revenue growth in the Christmas period in all of its businesses apart from sugar.
Technology group Sage gained after it reiterated full-year guidance as it said first quarter organic revenue increased by 7.6% to £465m.
GVC Holdings also as it said it expects underlying core earnings to come in above market expectations, while Experian pushed up as it posted a 9% jump in third-quarter revenue with particularly strong growth in North America, and backed its full-year guidance.
FTSE 100 - Risers
Associated British Foods (ABF) 2,302.00p 5.69%
Sage Group (SGE) 625.60p 5.50%
GVC Holdings (GVC) 685.50p 1.86%
British American Tobacco (BATS) 2,516.50p 1.80%
BT Group (BT.A) 231.45p 1.60%
Experian (EXPN) 1,903.50p 1.55%
Ocado Group (OCDO) 902.80p 1.05%
Severn Trent (SVT) 1,917.50p 0.92%
Relx plc (REL) 1,650.50p 0.86%
United Utilities Group (UU.) 798.00p 0.53%
FTSE 100 - Fallers
ITV (ITV) 127.85p -6.85%
Wood Group (John) (WG.) 541.60p -4.58%
SSE (SSE) 1,120.75p -3.76%
Ashtead Group (AHT) 1,840.00p -3.56%
Rolls-Royce Holdings (RR.) 855.20p -3.48%
3i Group (III) 810.00p -3.32%
Melrose Industries (MRO) 160.20p -3.29%
Reckitt Benckiser Group (RB.) 5,819.00p -2.85%
NMC Health (NMC) 2,714.00p -2.79%
Hargreaves Lansdown (HL.) 1,765.00p -2.59%
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN