FTSE 100 movers: Diploma rallies on guidance upgrade; BAE hit by downgrade

London’s FTSE 100 was down 0.2% at 8,421.35 in afternoon trade on Monday.

Shares in Diploma hit a record high as the specialist product distribution business lifted annual guidance after a 17% rise in adjusted half-year earnings, boosted by acquisitions.

The company now expects constant currency revenue growth of around 16%, up 5 percentage points from previous guidance, made up of 6% organic revenue growth and 10% from acquisitions. It also forecast a 15% rise in EPS.

BA owner IAG rose as JPMorgan said that earnings momentum should continue to take the shares higher.

Despite the recent rally - the stock has gained more than 30% since 5 March - JPMorgan said price growth, cost execution and lower disruption should benefit results in the coming quarters.

BAE Systems was under the cosh after Bank of America Merrill Lynch downgraded shares of the defence company to ‘neutral’ from ‘buy’.

The bank said that after a very strong run driven by positive revisions and a re-rating, it sees limited near-term valuation upside. The shares are up 23% year-to-date.

Phoenix Group fell after the savings and retirement group announced that its chief financial officer of four years was set to step down later this year.

Rakesh Thakrar, who joined the company in 2001, has held various strategic and finance positions, including deputy CFO from 2014 before being promoted to group CFO in 2020.

The company did not give a reason for his departure but said he will leave the company "at a date to be agreed".

FTSE 100 - Risers

Diploma (DPLM) 4,112.00p 5.38%
BT Group (BT.A) 108.75p 3.18%
International Consolidated Airlines Group SA (CDI) (IAG) 185.00p 2.10%
Vodafone Group (VOD) 70.72p 1.90%
3i Group (III) 2,905.00p 1.89%
Ocado Group (OCDO) 354.70p 1.84%
Smith (DS) (SMDS) 369.20p 1.71%
Kingfisher (KGF) 265.20p 1.38%
Sainsbury (J) (SBRY) 279.20p 1.16%
Marks & Spencer Group (MKS) 275.70p 1.14%

FTSE 100 - Fallers

BAE Systems (BA.) 1,350.00p -3.16%
Phoenix Group Holdings (PHNX) 505.00p -2.98%
CRH (CDI) (CRH) 6,626.00p -2.27%
Frasers Group (FRAS) 813.50p -2.22%
Intertek Group (ITRK) 4,910.00p -1.80%
Bunzl (BNZL) 3,128.00p -1.76%
Spirax-Sarco Engineering (SPX) 9,200.00p -1.60%
Admiral Group (ADM) 2,707.00p -1.56%
Relx plc (REL) 3,406.00p -1.53%
Pearson (PSON) 982.40p -1.52%