FTSE 100 movers: Burberry struts higher, Centrica hit by downgrade
London's FTSE 100 was down 0.9% to 6,842.93 in afternoon trade on Wednesday as sterling rallied amid indications that a no-deal Brexit was becoming less likely.
Ferguson was under pressure after Exane BNP Paribas downgraded the stock to 'underperform' as it took a look at the European building materials sector. It highlighted worries about the slowing US home renovations market following the profit warning from Sherwin-Williams last week.
Centrica was also on the back foot as Credit Suisse cut it to 'neutral' from 'outperform' ahead of price hikes.
"Our view is that the circa 8% price rise we now expect in early February will on balance be a negative for the stock.
"We reduce our 2018E EPS by circa 9%, reflecting the weaker UK home and lower hydrocarbon production volumes," it said.
EasyJet got a boost as JPMorgan and Berenberg upped their price targets on the stock, taking British Airways owner IAG along for the ride.
Ocado was among the risers after it updated analysts on contract revenue recognition. Analysts in attendance said Ocado's explanation of new accounting rules will make earnings appear "ugly" but that cash flows will not be affected.
Burberry advanced as sales disappointed slightly over the festive quarter but the fashion house maintained that it was successfully building "brand heat" ahead of the launch next month of its new creative director's debut collection.
Richard Hunter, head of Markets at Interactive Investor, said: "The rejuvenation of the iconic Burberry brand is still in its early stages, but there are clear signs that the new management team is taking the bull by the horns.
"Quite apart from confirming both the outlook and that the £100 million cost savings plan is on track, the company has been busy spreading the word on social media around some new collections and collaborations. Burberry is particularly optimistic on the launch of the new Riccardo product lines next month, and the building of 'brand heat' appears to have been successful so far. Equally reassuring is that the key Chinese market is continuing to display good growth, despite the current broader concerns around the potential slowdown within that economy."
FTSE 100 - Risers
Evraz (EVR) 462.60p 3.35%
easyJet (EZJ) 1,268.00p 2.71%
International Consolidated Airlines Group SA (CDI) (IAG) 631.40p 1.97%
Smurfit Kappa Group (SKG) 2,192.00p 1.95%
Auto Trader Group (AUTO) 458.20p 1.73%
Pearson (PSON) 935.80p 1.67%
ITV (ITV) 134.70p 1.62%
Ocado Group (OCDO) 929.80p 1.62%
Tesco (TSCO) 223.70p 1.50%
Burberry Group (BRBY) 1,799.50p 1.32%
FTSE 100 - Fallers
NMC Health (NMC) 2,698.00p -3.99%
Smith (DS) (SMDS) 324.90p -3.16%
Reckitt Benckiser Group (RB.) 5,845.00p -3.05%
Ferguson (FERG) 5,152.00p -2.87%
Ashtead Group (AHT) 1,882.50p -2.36%
GVC Holdings (GVC) 674.00p -2.25%
Centrica (CNA) 131.50p -1.94%
British American Tobacco (BATS) 2,485.00p -1.76%
Rio Tinto (RIO) 3,779.00p -1.73%
Royal Dutch Shell 'A' (RDSA) 2,273.00p -1.71%