FTSE 100 movers: Aberdeen rises despite dismissed sale rumours

The FTSE 100 started the week in the red, sitting 11.26 points (0.17%) lower at 6,432.82 mid-afternoon on Monday.

Aberdeen Asset Management led the risers after reports that the firm might be sounding out possible buyers. Sources cited by the FT mooted Credit Suisse - who sold its asset management business to Aberdeen seven years ago - as one potential buyer.

However, a spokesman firmly denied the claims, saying "in his 32 years running Aberdeen, Martin Gilbert has never made a formal or informal approach to anyone about buying the business," The Press and Journal reported.

Analysts at RBC also dismissed the report with Peter Lenardos, one of its managing directors, saying that for the fund manager to do so would be an admission of failure and that it was a well-run company.

Despite the company and analysts dismissing the report, the market responded with shares jumping over 6% on opening, but dropping back down to around 3% by mid-afternoon.

International Consolidated Airlines Group also continued its slow rise ahead of its third quarter results out on Friday. The Telegraph reported on Sunday that the airline group is expected to report a 33% increase in third-quarter profits to almost €1.2bn.

JP Morgan Cazenove also said it remains “bullish on IAG shares ahead of the 6 November AGM which is likely to detail Aer Lingus synergies estimates and further cost savings potential".

The same research note from JP Morgan Cazenove also highlighted that it is keeping its overweight view of the low-cost carrier sector “in light of expected balanced capacity and scope to retain some fuel cost savings over the short-term”. That helped easyJet rise before its full year result out mid-November.

Advertising and PR firm WPP took a hit after it reported its third quarter results. While it showed a healthy rise in revenue and said it expects an even better fourth quarter, Investec analysts Steve Liechti and Richard Holroyd said it was “not as good as hoped”. However they kept its full-year guidance unchanged for like-for-like 3% growth.

“Add – we like the growth shift to digital/emerging markets (EM) and cash generation, but see some unhelpful near-term global GDP uncertainty, e.g. EM macro/foreign exchange.”

FTSE 100 - Risers

Aberdeen Asset Management (ADN) 361.00p 2.73%
International Consolidated Airlines Group SA (CDI) (IAG) 607.50p 1.50%
Sainsbury (J) (SBRY) 273.10p 1.45%
St James's Place (STJ) 935.00p 1.25%
TUI AG Reg Shs (DI) (TUI) 1,222.00p 1.16%
Diageo (DGE) 1,878.50p 1.08%
Tesco (TSCO) 192.65p 1.08%
Morrison (Wm) Supermarkets (MRW) 176.80p 1.03%
Reckitt Benckiser Group (RB.) 6,309.00p 0.96%
easyJet (EZJ) 1,782.00p 0.91%

FTSE 100 - Fallers

Anglo American (AAL) 592.40p -2.87%
WPP (WPP) 1,450.00p -2.03%
ARM Holdings (ARM) 1,052.00p -1.96%
Randgold Resources Ltd. (RRS) 4,529.00p -1.86%
Admiral Group (ADM) 1,627.00p -1.81%
Fresnillo (FRES) 745.50p -1.65%
Glencore (GLEN) 117.25p -1.59%
Sky (SKY) 1,103.00p -1.52%
Wolseley (WOS) 3,799.00p -1.50%
Burberry Group (BRBY) 1,331.00p -1.48%