FTSE 250 movers: Hikma hits 15-month high, Just nears 2-yr low
London's FTSE 250 index was on the front foot on a quiet Monday, with some investors seeming to be catching up with news from recent weeks.
Top riser was Hikma Pharmaceuticals, which last week posted a strong set of first-half results, upgraded full year guidance amid more optimism on sustainability of margins in its injectables business and the pace of recovery at its generics arm. Hikma's shares topped 1,900p for the first time since early May 2017.
Cineworld Group was up, a few days after it was last in the news when reports surfaced that Amazon was among the leading contenders to acquire US-based cinema chain Landmark, potentially bringing a deep-pocketed backer for a competitor to Cineworld's stateside focused Regal Entertainment.
Hill & Smith was boosted by some fresher news, with the maker of motorway barriers and other infrastructure equipment upgraded by Investec to a 'buy' recommendation from 'add'. Said the analysts: “While the first-half profit miss was disappointing we view it as a bump in the road rather than as a barrier to future growth.”
There were also some results on Monday from TBC Bank, as the Georgia-based lender posted a sharp improvement in its profits after tax for the second quarter of 2018, thanks to a big reduction in costs, even as it positioned itself for potential upside from a recovery in the economy of neighbouring Azerbaijan. Shares in the group were sent 2% higher as general director Vakhtang Butskhrikidze said Georgia's strong economic momentum had continued into the first half of 2018, "we expect that the economic growth will still outperform the initial GDP forecast despite the recent development in Turkey and the region and its potential impact on Georgian economy".
The mid-cap index's biggest faller was Just Group, which announced last Friday that it had bought a 75% shareholding in the holding company of defined benefit pension advisory services firm, Corinthian Pension Consulting, while investors continue to fret worries about the potential impact of the Prudential Regulation Authority's consultation paper on life-time mortgages. Just has been the worst performing UK insurance stock this year, down 45% and nearing lows last seen in August 2016.
The company admitted in a trading update on 24 July that the consultation paper "does contain a proposal which if implemented would result in a reduction of Just's regulatory capital position". Analysts at Barclays said on Friday they believe it is likely the PRA will require insurers to assume a deferment rate of -2%, but will compromise on the transitional period. "We believe the current share price is pricing in a potential rights issue, which we do not think is required."
Investors in G4S were not quite rioting but nevertheless slightly irked as the security contractor was rapped on the knuckles by the government as it took over the running of Birmingham prison following an inspection which found it was in "an appalling state". The Ministry of Justice has taken immediate control of the prison from G4S, running the prison for an initial six-month period "at no additional cost to the taxpayer".
Polymetal International was up 1% after it has shipped first concentrate from its Kyzyl to China, with ramp-up of the site running according to plan. About 2000 tonnes of gold concentrate has so far been shipped by rail to China.
Engineer Wood Group was boosted by the winning of a six-year contract extension with Shell to provide asset management services to the Malampaya deepwater gas-to-power project in the Philippines, where it has been looking after subsea pipelines since 2001. Shares had risen more than 2% earlier in the session but finished just about flat.
Premier Oil was down slightly as it said that it would spend $120m of capital expenditure as part of a joint venture developing a large gas field in the Southern North Sea, known as Tolmount Main.
Market Movers
FTSE 100 (UKX) 7,605.74 0.62%
FTSE 250 (MCX) 20,579.12 0.66%
FTSE 250 - Risers
Hikma Pharmaceuticals (HIK) 1,908.50p 4.98%
Cineworld Group (CINE) 296.60p 3.34%
Hill & Smith Holdings (HILS) 1,132.00p 2.91%
IP Group (IPO) 124.00p 2.82%
Ashmore Group (ASHM) 352.00p 2.80%
Inmarsat (ISAT) 559.60p 2.72%
JD Sports Fashion (JD.) 490.60p 2.64%
Equiniti Group (EQN) 223.39p 2.47%
Mediclinic International (MDC) 477.50p 2.45%
PZ Cussons (PZC) 239.23p 2.32%
FTSE 250 - Fallers
Just Group (JUST) 88.70p -3.53%
Contour Global (GLO) 228.00p -3.06%
On The Beach Group (OTB) 463.00p -2.32%
Polypipe Group (PLP) 360.00p -2.12%
Renewi (RWI) 64.30p -1.83%
BCA Marketplace (BCA) 225.50p -1.74%
Alfa Financial Software Holdings (ALFA) 163.00p -1.57%
Assura (AGR) 56.90p -1.39%
Bank of Georgia Group (BGEO) 1,719.40p -1.17%
Energean Oil & Gas (ENOG) 508.00p -0.97%