FTSE 250 movers: No holiday for Thomas Cook, Just Group surges
By Duncan Ferris
Date: Monday 10 Dec 2018
(Sharecast News) - London's FTSE 250 was down 1.13% at 17,642.46 in afternoon trade on Monday, as Thomas Cook continued to lead the charge downward.
Thomas Cook was the index's top faller, continuing its miserable recent performance after having its price target cut from 60p to 34p at UBS amid concerns that its rising debt levels could mean that it needs to raise new capital.
Domino's Pizza suffered heavy losses following a Sunday Times report that disgruntled franchisees have written to the company's board threatening to "declare war" on the pizza chain if they are not given a bigger slice of the profits.
Housebuilders were in focus as Peel Hunt said the short-term outlook for the sector remains volatile, mainly due to the economic uncertainty caused Brexit, but that the longer-term prognosis for the industry is "favourable" whether the Brexit deal passes through Parliament this week or not.
Even so, Galliford Try dropped after its price target was cut from 1,165p to 885p by the broker and Crest Nicholson suffered as it was cut to 'reduce' from 'hold', with a lowered price target of 305p.
Cairn Energy was also lower following broker action, having seen its price target cut from 290p to 190p by Exane BNP.
Among the more positive movers, retirement products specialist Just Group surged after the Bank of England's regulatory arm confirmed a less onerous plan for equity release mortgage providers than some feared. The Prudential Regulation Authority confirmed that transitional relief will remain available for business arranged pre-2016.
Spire Healthcare advanced on the back of an upgrade to 'overweight' at Morgan Stanley, while WH Smith climbed after being upgraded to 'buy' at Investec.
Finally, gold miner Centamin was on the up as investors moved their money out of Brexit-exposed stocks on news that Theresa May has called off this week's parliamentary vote on the Brexit deal.
Andy Scott, associate director at JCRA, said: "May is reported to be planning to travel to Brussels to seek a legally-binding assurance on the backstop, in an attempt to gain support of MPs who fear being trapped indefinitely under the current proposal. But with her authority severely depleted, the political stakes are high for May who's position as Prime Minister could soon be deemed untenable. The uncertainty will meanwhile continue to exert downwards pressure on sterling."
Market Movers
FTSE 250 (MCX) 17,642.46 -1.13%
FTSE 250 - Risers
Just Group (JUST) 98.75p 20.28%
Contour Global (GLO) 172.60p 3.73%
Spire Healthcare Group (SPI) 108.50p 2.55%
Daejan Holdings (DJAN) 5,734.20p 2.40%
WH Smith (SMWH) 1,914.00p 2.24%
Sanne Group (SNN) 569.00p 2.15%
HICL Infrastructure Company Ltd (HICL) 154.10p 1.72%
Bakkavor Group (BAKK) 143.40p 1.56%
Centamin (DI) (CEY) 101.65p 1.45%
Fidelity European Values (FEV) 213.50p 1.18%
FTSE 250 - Fallers
Thomas Cook Group (TCG) 27.37p -11.42%
Galliford Try (GFRD) 598.50p -7.64%
Cairn Energy (CNE) 155.82p -7.08%
AA (AA.) 78.12p -7.02%
Domino's Pizza Group (DOM) 240.23p -6.71%
Crest Nicholson Holdings (CRST) 317.60p -5.92%
Premier Oil (PMO) 71.40p -5.87%
Superdry (SDRY) 635.00p -5.86%
Indivior (INDV) 78.90p -5.44%
Sirius Minerals (SXX) 20.78p -4.68%
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