12th Jan 2016 10:26
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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Tesco, up 5.6%, J Sainbury, up 2.8%. The two supermarkets benefited from a better-than-expected Christmas trading update from FTSE 250 rival Wm Morrison Supermarkets and also from the results of the latest Kantar Worldpanel UK grocery market survey. Morrison's results led to optimism the two blue-chip players will beat expectations as well when they provide updates in the next two days. Sainsbury's also emerged as the only winner among the Big Four from the Kantar survey, posting a 0.8% rise in sales in the 12 weeks to January 3. Tesco's sales fell 2.7%, while Morrisons' declined 2.6%.
Berkeley Group Holdings, up 4.2%, Barratt Developments, up 3.1%. The two housebuilders benefited from upgrades from Jefferies. The bank upgraded Berkeley to Buy from Hold and hiked its target price to 4,650 pence from 3,433p. Berkeley shares were trading at 3,685.88p. Barratt also was upgraded to Buy from Hold and its target price increased to 807p from 678p. Barratt shares were trading at 612.50p.
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FTSE 100 - LOSERS
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BHP Billiton, down 1.4%. The Anglo-Australian miner was downgraded by both Barclays and HSBC. Barclays cut its recommendation on BHP to Underweight from Equal Weight and slashed its target price to 515 pence from 900p. HSBC cut its rating to Reduce from Hold and also cut its target price heavily, down to 590p from 1,100p. BHP shares were trading at 626.00p.
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FTSE 250 - WINNERS
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Debenhams, up 15%. The department store operator reported growth in like-for-like sales in the first 19 weeks of its financial year, and in its Christmas trading period, as it benefited from less discounting and a reduction in stock levels. The department store operator said group like-for-like sales in the 19 weeks to January 9 grew 1.9% on the same period the year before, rising 1.8% in the seven weeks to the same date. Debenhams said it made further progress on its strategic priorities which helped to deliver a strong trading performance and record sales in the Christmas week.
Wm Morrison Supermarkets, up 9.0%. The grocer reported a fall in total sales in the Christmas trading period, although sales grew on a like-for-like basis excluding fuel, and it announced the planned closure of a further seven stores. The grocer said total sales excluding fuel were down 1.2% in the nine weeks to January 3, on the same period the year before, and down 1.7% including fuel. On a like-for-like basis, sales excluding fuel grew 0.2% but fell 0.6% including fuel. The growth in like-for-like sales excluding fuel came in ahead of market expectations, which had expected a decline in this measure. As Morrisons struggled over the course of 2015, its shares fell out of the FTSE 100 in December.
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FTSE 250 - LOSERS
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Greggs, down 8.0%. Bakery and food-to-go retailer reported growth in sales in its recently-ended financial year, driven by sandwiches, drinks, hot food and coffee, although like-for-like sales growth slowed over the Christmas period against a strong comparative period and amid weaker footfall. Greggs said total sales grew 3.7% in the 52 weeks to January 2, compared with the 53-week prior year. Excluding the prior year's 53rd week, total sales rose 5.2% against the 52-week prior year comparable, while company-managed shop like-for-like sales rose 4.7%.
Michael Page International, down 8.3%. The recruiter said its gross profit dipped in the fourth quarter due to currency weakness across its operations and tougher trading in Asia Pacific. Michael Page said its total gross profit fell 0.5% in the fourth quarter to the end of December, though it would have increased 5.3% in constant currencies. The biggest currency hits came in its Europe, Middle East and Africa arm, where reported gross profit growth was 1.6% compared to 10% in constant currencies, hit by a weak euro, and in the Americas region, where gross profit fell 4.1% but rose 5.4% in constant currencies. Market conditions also weakened in the UK and Asia Pacific, the group said. The news dragged shares in recruitment rival Hays down 5.5%.
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MAIN MARKET AND AIM - WINNERS
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KBC Advanced Technologies, up 48% to 183.22 pence. The oil and gas industry software provider said it has agreed a GBP158.0 million deal to be acquired by US software company Aspen Technology. Aspen will pay 185.00p per share in cash for KBC, a premium of around 49% to KBC's closing price on Monday. KBC Chairman Ian Godden said: "We believe that there are advantages in being part of a larger, broader and better capitalised group. The offer from AspenTech represents a compelling opportunity for KBC's shareholders to realise an attractive value for their investment in cash at a significant premium."
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MAIN MARKET AND AIM - LOSERS
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Pantheon Resources, down 11%. The oil and gas company said it is contending with a blockage at the VOS#1 well in Tyler County, onshore east Texas, after a sudden decrease in gas production, oil production and flowing tubing pressure alerted the company to the obstruction. The oil and gas exploration and production company, which has a 50% working interest in several projects in Tyler and Polk Counties in east Texas, said a bottom hole pressure build-up test to provide a "definitive analysis" of the type of blockage has already begun and will take a total of 72 hours.
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By Sam Unsted; [email protected]; @SamUAtAlliance
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