30th Sep 2020 10:49
(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 100 - WINNERS
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Taylor Wimpey, up 2.3%, Barratt Developments, 2.2%, Persimmon, up 2.0%, Berkeley Group, up 1.3%. The housebuilders were higher after industry data showed the average UK house price hit a new record in September, pushing over GBP225,000 for the first time. Nationwide Building Society said the average UK house price was GBP226,129 in September – the first time it has been above the GBP225,000 mark. In August, the average house price was GBP224,123. House prices increased by 5% annually in September, marking the highest growth rate in four years. Prices increased by 0.9% month-on-month. Robert Gardner, Nationwide's chief economist, said: "The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown."
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FTSE 100 - LOSERS
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Compass Group, down 4.5%. The contract caterer said it was expecting a sharp revenue drop for its 2020 financial year, though there have been signs of improvement in its fourth quarter. Compass said revenue for its financial year ending Wednesday was down 19%, having fallen 44% in the third quarter and 36% in the fourth. The company said it saw some improvement in the fourth quarter as students began to return to schools and workers to offices. Compass is reviewing its contract portfolio and currently estimates that, subject to audit, it will have to impair around GBP100 million of contract assets. Including these impairments, it expects to post a negative underlying operating margin of about 3% for the fourth quarter, improved from a 5.3% negative underlying operating margin in the third quarter. Before impairments, its operating margin was at breakeven in the fourth quarter. However, Compass said the pace at which revenue and margins will recover remains unclear, given the possible increase in lockdown measures in the Northern Hemisphere through the winter months. "Compass was firmly lower as it revealed a GBP100 million impairment linked to Covid and revealed fears about the impact of new restrictions," said AJ Bell's Russ Mould.
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FTSE 250 - WINNERS
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888 Holdings, up 22%. The gambling firm announced its profit more than doubled in the first half of 2020 thanks to continued strong levels of customer acquisition and high use of online services during lockdown. 888 posted a pretax profit in the six months ended June 30, of USD50.9 million, more than doubling from USD22.2 million a year prior. Revenue was up 37% to USD379.1 million from USD277.3 million a year before. The company declared an interim dividend of 3.2 US cents per share as well as an additional one-off 2.8 cents per share, bringing the interim dividend to a total of 6.0 cents per share. This is double last year's 3.0 cents per share. 888 said third-quarter daily revenue to date is on average 56% higher than the year prior.
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QinetiQ Group, up 6.5%. The defence technology firm reinstated its dividend after pausing payouts due to Covid-19 and said it expects annual financial results to beat consensus estimates. The company reported a "good first-half", despite Covid-19 uncertainty noting order intake throughout the first half continued to be particularly strong. QinetiQ declared an additional 4.4 pence dividend, equal to the postponed final payout for the financial year that ended March 31. "The board also intends to reinstate the progressive dividend policy for financial 2021, with the interim and final dividend in line with the normal financial calendar," the company added. What's more, QinetiQ forecast annual results "modestly" ahead of average consensus expectations. It noted average consensus is for revenue of GBP1.13 billion and operating profit of GBP128 million.
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FTSE 250 - LOSERS
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TP ICAP, down 14%. The interdealer broker late Tuesday said it is in advanced discussions concerning a potential acquisition of New York-based electronic trading network Liquidnet Holdings for a price ranging from USD600 million from USD700 million. The payment comprises an upfront consideration of USD550 million, and a deferred non-contingent consideration of USD50 million and an earn-out of up to USD100 million. In addition, TP ICAP said July trading activity had slowed down and was materially lower than 2019 levels, in line with activity levels in the wider market and remains reliant on higher market volatility and trading activity in the fourth quarter. "Since we closed our bear position in May, the stock has continued to drift lower and we expect yesterday's announcement will put further downwards pressure on it, particularly since yield is no longer a meaningful support," said analysts at Shore Capital.
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OTHER MAIN MARKET AND AIM - WINNERS
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AG Barr, up 5.2%. Barclays upgraded the soft drinks maker to Equal Weight from Underweight.
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By Arvind Bhunjun; [email protected]
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Related Shares:
Berkeley GroupBarratt DevelopmentsQinetiqBarr (A.G.)PersimmonTaylor WimpeyCompass Group888.L