FTSE 100 movers: Airlines hit by HSBC downgrade; Ocado drops

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Sharecast News | 19 Jun, 2019

London's FTSE 100 was down 0.5% at 7,408.90 in afternoon trade on Wednesday as investors digested the latest UK inflation figures and looked to a policy announcement from the Federal Reserve

Ocado was the worst performer on the top-flight index, with traders pointing to an article in The Grocer which said that while companies such as Ocado, Waitrose and Sainsbury's are all experimenting with a fast delivery service, "these missions are often very low value" and only a small part of the sector.

The Grocer also said that while some consumers are willing to pay a fee, they are a small portion of the sector.

"A quarter of shoppers are still reluctant and say they would not pay anything for same-day delivery, while only 19% would be willing to pay over £5, says Mintel data," it said.

The decline in the share price also came as Ocado said it had sold Fabled by Marie Claire Beauty to Next for a minimum guaranteed payment of £3m.

Ocado chief executive Tim Steiner said: "The recent JV with M&S has meant that the centre of gravity at Ocado Group has shifted. In the light of our strategic evolution, and given the success of the collaboration between Next and Fabled, we decided that it would be in the best interests of all parties to now pass the baton so that Next can take Fabled forward."

Airlines were under the cosh, with British Airways and Iberia parent International Consolidated Airlines Group and EasyJet both lower after a downgrade to 'reduce' from 'hold' at HBSC. The bank said it was turning more cautious on the sector following Lufthansa's profit warning earlier this week.

Rio Tinto retreated as it downgraded its full-year iron ore guidance again due to mine operational challenges. The miner lowered its annual production guidance to between 320 million tonnes and 330m tonnes from between 333m and 343m as it highlighted operational challenges in the Greater Brockman hub in the Pilbara region of Australia.

FTSE 100 - Risers

Smith (DS) (SMDS) 358.30p 3.79%
NMC Health (NMC) 2,462.38p 3.42%
Royal Bank of Scotland Group (RBS) 221.75p 3.14%
Melrose Industries (MRO) 174.95p 2.49%
Standard Life Aberdeen (SLA) 281.75p 1.71%
Mondi (MNDI) 1,767.00p 1.61%
Lloyds Banking Group (LLOY) 58.97p 1.55%
Prudential (PRU) 1,683.50p 1.35%
Ashtead Group (AHT) 2,107.00p 1.25%
Barclays (BARC) 153.48p 1.24%

FTSE 100 - Fallers

Ocado Group (OCDO) 1,097.50p -4.73%
Just Eat (JE.) 610.20p -4.39%
Marks & Spencer Group (MKS) 213.30p -4.01%
Rio Tinto (RIO) 4,707.00p -3.50%
Evraz (EVR) 676.80p -3.29%
International Consolidated Airlines Group SA (CDI) (IAG) 443.00p -3.17%
easyJet (EZJ) 879.40p -2.35%
Micro Focus International (MCRO) 1,995.60p -2.18%
Experian (EXPN) 2,390.00p -2.17%
Hargreaves Lansdown (HL.) 1,877.50p -1.75%

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