FTSE 100 movers: Vodafone rallies on results; tobacco stocks drop again
By Michele Maatouk
Date: Tuesday 13 Nov 2018
(Sharecast News) - London's FTSE 100 was down 0.3% to 7,034.54 in afternoon trade on Tuesday as the pound rallied on the back of solid wage growth figures and Brexit hopes.
Vodafone was the standout gainer as it swung to a large loss at the half-year stage after restructuring its business in India due to competitive pressures, but underlying earnings remained on track and there was reassurance provided on the dividend.
Richard Hunter, head of markets at Interactive Investor, said: "Vodafone is not out of the woods, but it has established a positive direction of travel. This should come as some relief to long-suffering investors who have had a torrid time, with the share price having dropped 34% over the last year, as compared to a 5% dip for the wider FTSE100, with a decline of 19% in the last three months alone."
Melrose Industries also rose after a reassuring trading statement that highlighted strong revenue growth in the aerospace business.
Consumer credit reporting agency Experian advanced as it posted a jump in half-year revenue amid growth across regions, but a drop in pre-tax profit.
On the downside, GVC Holdings was in the red following a report in the Times suggesting that Philip Hammond is facing almost certain defeat over his budget plan to delay a crackdown on fixed-odds betting terminals.
British American Tobacco and Imperial Brands were under the cosh again following reports over the weekend that the US Food and Drug Administration was looking at cracking down on menthol cigarettes.
Goldman Sachs said worries about a potential menthol ban in the US appear overdone, particularly for BATS. It said that if a potential ban is proposed, tobacco companies would likely pursue litigation, initially seeking a preliminary injunction and seeking litigation on more substantive issues down the line.
"This would likely delay a ban on menthol cigarettes, potentially for several years," it said.
Assuming a downside case of a menthol ban being announced imminently and a full implementation in two years, GS estimated a potential earnings impact of 17% for BATS.
FTSE 100 - Risers
Vodafone Group (VOD) 154.20p 6.82%
Melrose Industries (MRO) 173.55p 5.25%
Experian (EXPN) 1,887.00p 5.24%
Micro Focus International (MCRO) 1,288.00p 2.71%
Berkeley Group Holdings (The) (BKG) 3,646.00p 2.50%
Croda International (CRDA) 4,897.00p 2.45%
Barratt Developments (BDEV) 537.40p 2.44%
Bunzl (BNZL) 2,302.00p 2.08%
BAE Systems (BA.) 540.20p 1.96%
Standard Chartered (STAN) 578.00p 1.90%
FTSE 100 - Fallers
GVC Holdings (GVC) 755.00p -4.19%
Smurfit Kappa Group (SKG) 2,234.00p -3.46%
Severn Trent (SVT) 1,908.50p -3.10%
BP (BP.) 513.80p -2.71%
British American Tobacco (BATS) 2,895.50p -2.26%
Wood Group (John) (WG.) 653.80p -2.07%
Royal Dutch Shell 'A' (RDSA) 2,382.50p -2.02%
Just Eat (JE.) 561.80p -1.92%
Imperial Brands (IMB) 2,639.50p -1.88%
Associated British Foods (ABF) 2,568.00p -1.76%
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