FTSE 100 movers: Carnival gains again but Wolseley slumps

London's FTSE 100 was down 0.5% at 6,785.87 in afternoon trade.

Carnival was the top riser a day after the cruise line operator lifted its earnings guidance for the year and reported a jump in profit in the latest quarter.

It now expects full-year 2016 adjusted earnings per share of between $3.33 and $3.37 compared to previous guidance of $3.25 to $3.35.

United Utilities was on the front foot after the water company said it expects revenue for the first half of this year to be slightly lower than the same period last year, but underlying operating profit to be marginally higher.

It said the lower revenue would reflect the accounting impact of its Water Plus business retail joint venture, partly offset by its allowed regulatory revenue changes.

Sky was also in the black after as Kepler Cheuvreux upgraded the stock to ‘buy’ from ‘hold’ saying its discounted cash flow-based fair value of 1,100p suggests nearly 30% upside from current levels, which is the highest in its large-cap media universe.

The bank noted the stock has dropped by 23% in absolute terms and 20% relative to the sector year-to-date, making it one of the most de-rated European media stocks in 2016, with only highly cyclical stocks such as ITV and Mediaset performing worse.

Kepler said innovation and technology are allowing Sky to continue to grow its revenue by above-average rates thanks to a broad-based combination of new subscribers, increased product take-up from the existing base, price increases, share gains in advertising and content sales.

On the downside, builders merchant Wolseley was the standout loser after saying it will cut 800 jobs and close 80 stores in a bid to save money, despite reporting a jump in profit and revenue for the year to the end of July.

Standard Chartered was in the red following a report that the bank came under investigation from US authorities due to alleged misconduct on the part of management at the Indonesian power company controlled by the lender.

According to the Wall Street Journal, an internal audit at Maxpower Group and a separate review conducted by a law firm hired by the Asian firm had discovered evidence of possible bribery and other misconduct.

Royal Bank of Scotland was weaker, dragged lower by Deutsche Bank amid worries about how the German lender will pay the $14bn US Department of Justice fine for the mis-selling of mortgage-backed securities.

Spreadex’s Connor Campbell said: “Royal Bank of Scotland actually surpassed Deutsche Bank’s morning drop, percentage-wise at least, with investors fearful that the same kind of fine could hit RBS when its settlement with the US Department of Justice is finally revealed.”

Risers

Carnival (CCL) 3,653.00p 2.76%
Pearson (PSON) 738.00p 1.65%
National Grid (NG.) 1,089.00p 0.93%
United Utilities Group (UU.) 994.50p 0.86%
Sky (SKY) 841.50p 0.84%
Unilever (ULVR) 3,628.00p 0.79%
Severn Trent (SVT) 2,482.00p 0.77%
Persimmon (PSN) 1,777.00p 0.74%
Coca-Cola HBC AG (CDI) (CCH) 1,752.00p 0.69%
SSE (SSE) 1,538.00p 0.65%

Fallers

Wolseley (WOS) 4,151.00p -3.47%
Standard Chartered (STAN) 605.80p -3.18%
Royal Bank of Scotland Group (RBS) 171.90p -3.15%
Antofagasta (ANTO) 495.50p -2.27%
Anglo American (AAL) 910.30p -2.20%
Capita (CPI) 950.00p -2.11%
Royal Dutch Shell 'A' (RDSA) 1,800.50p -2.09%
Royal Dutch Shell 'B' (RDSB) 1,885.00p -2.08%
London Stock Exchange Group (LSE) 2,787.00p -2.00%
International Consolidated Airlines Group SA (CDI) (IAG) 386.60p -2.00%