FTSE 100 movers: Another Prudential management change leads market down

The FTSE 100 has started the month on a sour note, with the blue-chip market down 66.82 points (1.10%) to 6,016.97 by mid-afternoon on Monday.

Prudential was one of the biggest fallers after the company announced another high-profile departure. Michael McLintock has decided to retire as chief executive of its subsidiary M&G Investments after 19 years with the company. It’s the fourth high-profile departure from the group in the last 12 months.

Aberdeen Asset Management’s chief investment officer Anne Richards will take over the role later in the year subject to regulatory approval. Richards is currently responsible for operations in Europe, the Middle East and Africa at Aberdeen Asset Management, and has previously held senior roles at JP Morgan Investment Management, Mercury Asset Management and Edinburgh Fund Manager. "I am delighted that a person of Anne's talent is joining the group,” said Prudential group chief executive Mike Wells.

BP shares dropped as last week’s oil gains began to unwind again ahead of tomorrow’s fourth quarter results.

The oil giant is forecast to announce earnings in the final three months of 2015 fell to $730m (£514m) from $2.2bn a year earlier. For the full-year Deutsche Bank estimates the company will report a loss before tax of $3.1bn, compared to profit of $11.1bn the previous year. BP is also expected to reiterate that capital expenditure will run at the lower end of its $17-$19bn guidance for this year and next and that it is looking to cut $6bn of cash operating expenditure by the end of 2017. “Given management’s focus on cost and high-grading returns our view is that the shares overstate the risks, on DB deck at least, and continue to suggest material upside,” said Lucas Herrmann, research analyst at Deutsche Bank.

Royal Bank of Scotland shares were also down on Monday, following a report in The Sunday Times that AIM-listed lender Secure Trust could make an audacious bid to buy Royal Bank of Scotland's Williams & Glyn subsidiary. After failed attempts to sell to Santander and then to float the business, RBS could begin an auction in the coming weeks, the paper reported, with ex-RBS executive Paul Lynam hopeful his new Secure Trust vehicle will battle Virgin Money and a returning Santander.

In more positive news, BT Group’s third quarter revenues have risen 3%, leaving the company’s year-to-date revenues flat but sending shares up. The company said revenue for the three months to 31 December 2015 was £4.59bn, with revenue for the nine months at £13.25bn. Reported profit before tax also rose 24% for the quarter, up to £862m, and year to date profit up 18% to £2.14bn.

Chief executive Gavin Patterson said it was a strong set of results. "BT Consumer had a standout quarter, increasing its overall line base for the first time in well over a decade and capturing 71% of new broadband customers. Good customer growth in broadband, TV and mobile helped to grow ARPU by 7%.”

The telco also announced a new organisational structure following the acquisition of EE, a brand which is said will be retained. It will see the business focus on six lines of business and will be supported by BT’s Technology, Service and Operations division.

InterContinental Hotels Group shares also rose on a report in The Sunday Times that it is preparing to return a £700m to shareholders via a share buyback after it missed out on a number of hotel deals. IHG is due to unveil the return as part of February's final results announcement, according to sources cited by the paper.

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 549.00p 1.76%
BT Group (BT.A) 493.25p 1.73%
Sky (SKY) 1,100.00p 1.66%
easyJet (EZJ) 1,572.00p 1.55%
InterContinental Hotels Group (IHG) 2,326.00p 1.26%
Fresnillo (FRES) 730.50p 1.18%
Randgold Resources Ltd. (RRS) 5,025.00p 1.17%
Barratt Developments (BDEV) 605.50p 1.00%
Mondi (MNDI) 1,147.00p 0.97%
ARM Holdings (ARM) 1,001.00p 0.81%

FTSE 100 - Fallers

Glencore (GLEN) 85.96p -3.93%
Prudential (PRU) 1,315.00p -3.84%
Standard Chartered (STAN) 454.30p -3.55%
Anglo American (AAL) 268.70p -3.15%
BP (BP.) 364.30p -3.14%
Antofagasta (ANTO) 368.80p -3.00%
Legal & General Group (LGEN) 236.40p -2.92%
Capita (CPI) 1,142.00p -2.81%
Old Mutual (OML) 165.00p -2.77%
Royal Bank of Scotland Group (RBS) 246.00p -2.65%