FTSE 100 movers: Carnival on the rise after Q3, but Lloyds drops on downgrade

London’s FTSE 100 was down 1.3% to 6,818.58 in afternoon trade.

InterContinental Hotels fell after Morgan Stanley downgraded its shares to 'underweight' from 'equalweight' due to the stock's recent outperformance and concerns that the US hotel cycle is peaking. After rising 10% in the year to date, the price target was trimmed to 3,100p from 3,300p and MS saw a possible bear case of 2,000p as IHG was observed to now be trading at a 5% premium to its peers.

Lloyds Banking Group was downgraded by Goldman Sachs to ‘sell’ from ‘neutral’ and the bank trimmed the price target 6% to 50p as it pointed to increased competition and low rates. GS pointed out that Lloyds saw a market decline in new business share in the first half of this year, which led to a 3% annualised decline in mortgage balances.

Shares in Taylor Wimpey, Barratt Developments and Persimmon dropped after the British Banking Association released data showing loans for house purchases fell to a new 19-month low of 36,997 in August from the revised previous figure of 37,672 a month before. Economists had expected 37,100 loans.

Carnival was higher after its net revenues rose 2.7% for its three month period ending 31 July 2016 which was towards the top end of the 2-3% rise projected by the firm. As a result, management raised their expected earnings per share for the full year to $3.33 to $3.37, compared to the $3.25 to $3.35 range it had in June.

FTSE 100 - Risers

Carnival (CCL) 3,636.00p 0.83%
National Grid (NG.) 1,082.00p 0.70%
Micro Focus International (MCRO) 2,132.00p 0.38%
Informa (INF) 713.50p 0.35%
SSE (SSE) 1,535.00p 0.07%
Burberry Group (BRBY) 1,401.00p -0.00%
GKN (GKN) 323.20p -0.00%
Hikma Pharmaceuticals (HIK) 2,094.00p -0.10%
Coca-Cola HBC AG (CDI) (CCH) 1,730.00p -0.17%
Severn Trent (SVT) 2,466.00p -0.24%

FTSE 100 - Fallers

InterContinental Hotels Group (IHG) 3,147.00p -4.20%
Taylor Wimpey (TW.) 149.40p -3.92%
Lloyds Banking Group (LLOY) 53.86p -3.79%
Pearson (PSON) 730.00p -3.69%
Kingfisher (KGF) 369.00p -3.63%
Barratt Developments (BDEV) 479.60p -3.54%
Persimmon (PSN) 1,773.00p -3.54%
Prudential (PRU) 1,364.50p -3.09%
International Consolidated Airlines Group SA (CDI) (IAG) 393.30p -3.08%
Ashtead Group (AHT) 1,193.00p -3.01%