FTSE 250: Precious metals miners up, TI Fluids and Jupiter fall
The FTSE 250 index was on the up on Wednesday afternoon, led by news-driven gains for precious metals miners Polymetal and Hochschild, oil services engineer Hunting and price comparison site Moneysupermarket.
Polymetal International issued its production results for the first quarter of the year, reporting 295,000 oz of gold equivalent production, a 5% year-on-year increase. The Russian miner said it was on track to hit full year target after strong performances at its Albazino, Varvara, and Svetloye mines, which more than compensated for the grade-driven decline at Omolon.
Hochschild Mining reported record first quarter attributable production in an update on Wednesday, with 4.7m ounces of silver and 69,030 ounces of gold produced in the period. The Peruvian miner said on an equivalency basis, that totalled 9.8m silver equivalent ounces or 132,036 gold equivalent ounces.
Energy services group Hunting was up on the back of a good start to the year in North America, lifting full year results for 2018 reaching the upper half of previous guidance. Revenues in the first three months of the year came in at a similar average monthly run rate as they had in the final quarter of 2017 as the FTSE 250 firm continued to benefit from its improved operational leverage, with volumes increasing alongside an already reduced cost base.
Price comparison website Moneysupermarket.com reported a 4% jump in first-quarter revenue and said it remains confident of meeting current market expectations. Total revenues in the quarter ending 31 March came to £88.3m, with revenue in the insurance business up 4% to £47.1m and revenue from the money segment down 1% to £23.1m.
Numis said it was an "encouraging" trading update and reiterated its 'buy' rating and 390p price target on the stock.
TI Fluid Systems, the manufacturer of automotive fuel tanks, brake and fuel lines, led the fallers after a rotten set of European new car registration numbers. The European Automobile Manufacturers Association said EU 27 registrations plunged 5.3% year-on-year in March.
While this was a grim headline, Capital Economics said it is likely to be partly a result of the early Easter, which meant that March 2018 had fewer sales days than in 2017, while worse weather than usual also probably also played a role. "Looking ahead, we need more evidence to conclude that the slowdown in March is the beginning of something more lasting. We doubt it."
CYBG warned that half-year results would be hit by an expected increase in provisions for PPI costs of £350m. Customer-initiated PPI complaints were lifted, in line with the rest of the industry, to around 59,000 complaints during the period, which was higher than forecast.
CYBG said the elevated level of complaints was driven by a combination of factors, including heightened media coverage, an advertising campaign from the Financial Conduct Authority, and increased activity by claims management companies. The Financial Conduct Authority's new campaign again features an animatronic Arnold Schwarzenegger prompting more consumers to apply for for PPI compensation.
Jupiter Fund Management was under the cosh as it posted a drop in first-quarter assets under management. In the three months to the end of March 2018, assets under management fell 6.6% to £46.9bn amid net outflows of £1.3bn, in what the company called a "challenging start" to the year, with negative market returns across all channels.
Intu Properties was hit by suitor Hammerson withdrawing its recommendation for a proposed £3.2bn takeover, problems in the UK retail market and opposition among some shareholders for its change of heart.
Broker Numis said: "From conversations we have had with investors over the last few weeks, sentiment has shifted materially against the deal; even when it was first announced, sentiment was mixed and given the challenges seen across the retail landscape through 1Q18 as well as a failed approach for HMSO by Klepierre, it is no surprise that the market is cautious on a deal that would have seen HMSO gear up at the top of the cycle while increasing its UK exposure from 49% to 72% proforma and committing to sell £2bn of assets into a highly illiquid and selective market."
Market Movers
FTSE 100 (UKX) 7,306.52 1.11%
FTSE 250 (MCX) 19,931.29 0.51%
techMARK (TASX) 3,383.69 0.71%
FTSE 250 - Risers
Polymetal International (POLY) 699.80p 12.22%
Hochschild Mining (HOC) 218.80p 9.40%
Ferrexpo (FXPO) 232.20p 6.51%
Hunting (HTG) 779.00p 5.77%
Moneysupermarket.com Group (MONY) 298.50p 5.29%
Tullow Oil (TLW) 222.90p 4.70%
Hammerson (HMSO) 516.40p 4.62%
Kaz Minerals (KAZ) 925.80p 4.37%
Drax Group (DRX) 312.40p 4.13%
TBC Bank Group (TBCG) 1,842.00p 3.83%
FTSE 250 - Fallers
TI Fluid Systems (TIFS) 248.00p -7.46%
CYBG (CYBG) 287.80p -5.45%
Jupiter Fund Management (JUP) 444.60p -4.65%
Intu Properties (INTU) 201.50p -3.31%
Hiscox Limited (DI) (HSX) 1,452.00p -3.07%
Bakkavor Group (BAKK) 180.50p -2.96%
Greene King (GNK) 563.40p -2.63%
QinetiQ Group (QQ.) 217.40p -2.47%
Euromoney Institutional Investor (ERM) 1,234.00p -2.22%
Lancashire Holdings Limited (LRE) 575.50p -2.13%