FTSE 250 movers: Kaz surges on JPM upgrade; Balfour Beatty drops on results
London’s FTSE 250 was up 0.2% to 18,993.62 in afternoon trade as investors digested the Bank of England’s decision to leave interest rates at a record low.
Mining stocks were the standout gainers on Thursday, boosted by earlier weakness in the dollar, stronger gold prices and an upbeat note by JP Morgan Cazenove.
Shares in Kaz Minerals rallied as JPM upgraded the stock to ‘neutral’ and lifted the price target to 580p from 465p.
The bank said it had been cautious on the stock due to risks around the construction of development projects and balance sheet vulnerability in the event of a commodity price downturn.
“However, operational/project performance has exceeded expectations, while commodity prices have reduced balance sheet risk. Given those factors, coupled with an almost 20% pullback in the shares since mid-Feb, we now see an attractive entry point and upgrade.”
Acacia Mining was also lifted as JPM said it remained one of its top picks in the precious metals sector. It highlighted the fact the company generates a free cash flow yield of around 7-8%, which is the highest among the UK precious peers, providing strategic flexibility.
On the downside, infrastructure group Balfour Beatty fell despite saying it has returned to the black, posting full year pre-tax profits of £8m from a loss of £199m.
Challenger OneSavings Bank reversed earlier gains to trade lower after it hiked its dividend 21% as it reported a 29% increase in profit before tax as its loan book accelerated growth in the second half alongside an improvement in the net interest margin.
Essentra, Crest Nicholson and Millennium & Copthorne retreated as their stock went ex-dividend.
Hochschild Mining (HOC) 291.30p 8.61%
Kaz Minerals (KAZ) 521.00p 8.29%
Vedanta Resources (VED) 900.00p 7.85%
Evraz (EVR) 215.80p 5.32%
Acacia Mining (ACA) 483.90p 4.06%
Polymetal International (POLY) 989.00p 3.94%
Ferrexpo (FXPO) 164.40p 3.79%
Investec (INVP) 622.50p 3.49%
Hill & Smith Holdings (HILS) 1,323.00p 2.80%
Fidelity China Special Situations (FCSS) 195.80p 2.35%
Essentra (ESNT) 523.50p -3.06%
Balfour Beatty (BBY) 276.00p -2.78%
Computacenter (CCC) 742.00p -2.50%
Crest Nicholson Holdings (CRST) 548.00p -2.14%
Vectura Group (VEC) 153.80p -2.04%
Millennium & Copthorne Hotels (MLC) 455.00p -1.90%
Riverstone Energy Limited (RSE) 1,306.00p -1.80%
Rank Group (RNK) 208.70p -1.79%
BTG (BTG) 580.00p -1.44%
OneSavings Bank (OSB) 413.40p -1.41%