FTSE 100 movers: Miners rally but Just Eat slumps on Uber/Deliveroo reports
By Michele Maatouk
Date: Friday 21 Sep 2018
(Sharecast News) - London's FTSE 100 was up 1.6% to 7,484.12 in afternoon trade on Friday as the pound took a tumble after PM Theresa May said Brexit talks with the EU have hit an "impasse".
Screwfix and B&Q owner Kingfisher was the top riser, bouncing back from losses earlier in the week on the back of disappointing half-year results.
Miners were on the front foot as metals prices rallied, with Glencore, Antofagasta and BHP Billiton all higher.
On the downside, Just Eat bucked the trend, tumbling nearly 6% following reports that Uber is in early-stage talks to buy Deliveroo. Peel Hunt said that while this is isn't a done deal, it would be a shift in the paradigm of the cooked food delivery market in the UK and beyond and could put enormous pressure on "the poster child for takeaway aggregation", Just Eat.
Still, it argued that Just Eat's buying power to get discounts for its restaurants, its invaluable big data assets, and the large swathe of customers that use and continue to use the platform is still a huge barrier to entry for the smaller players.
Meanwhile, Canaccord Genuity said the news was "potentially terrifying" for Just Eat.
Smiths Group was trading sharply lower after saying it returned to growth last year as revenue increased but currency swings and reclassification of costs sent annual profit down 8%. The company also announced the sale of its medical division's water bottling business for an enterprise value of $40m.
Retailer Next was under the cosh after Jefferies cut its price target to 5,600p from 6,100p as it trimmed its pre-tax profit forecast to reflect a reduction in average transaction size at Directory.
In terms of sectors, housebuilders were the worst performers after Theresa May's Brexit comments, with Barratt, Persimmon, Taylor Wimpey and Berkeley all lower.
FTSE 100 - Risers
Kingfisher (KGF) 256.20p 5.56%
Glencore (GLEN) 335.85p 4.40%
Antofagasta (ANTO) 894.80p 4.29%
BHP Billiton (BLT) 1,675.20p 3.54%
GVC Holdings (GVC) 1,005.00p 3.50%
Anglo American (AAL) 1,754.00p 3.46%
TUI AG Reg Shs (DI) (TUI) 1,413.50p 3.21%
Scottish Mortgage Inv Trust (SMT) 544.10p 2.97%
GlaxoSmithKline (GSK) 1,525.00p 2.64%
InterContinental Hotels Group (IHG) 4,751.00p 2.59%
FTSE 100 - Fallers
Just Eat (JE.) 672.20p -5.06%
Smiths Group (SMIN) 1,533.00p -3.65%
Barratt Developments (BDEV) 562.20p -2.56%
easyJet (EZJ) 1,393.00p -2.11%
Persimmon (PSN) 2,389.00p -1.85%
Taylor Wimpey (TW.) 170.20p -1.50%
Next (NXT) 5,246.00p -1.43%
Berkeley Group Holdings (The) (BKG) 3,657.00p -1.24%
Burberry Group (BRBY) 1,993.50p -0.72%
Tesco (TSCO) 237.35p -0.65%
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