FTSE 100 movers: Hikma slumps but Paddy Power shines

London’s FTSE 100 was down 1.6% to 6,683.54 in afternoon trade.

Hikma Pharmaceuticals was under the cosh as Numis upgraded the stock to ‘buy’ from ‘hold’ but cut its target price to 2,350p from 2,660p.

“The key risk to the investment case following the downgrades in August to fiscal year 2016 forecasts are margin expectations from Generics that have disappointed since the acquisition of Roxane, which completed in early 2016,” the broker said.

Dixons Carphone was on the back foot, giving back some of the gains from the previous session, when it was boosted by an upgrade to ‘equalweight’ by Morgan Stanley.

Housebuilders Taylor Wimpey and Persimmon retreated. Mike van Dulken, head of research at Accendo Markets, attributed the decline to several factors.

He pointed to Thursday’s more balanced view from the Bank of England on the interest rate outlook. In addition, he said a very weak pound has sent the BoE’s inflation expectations through the roof.

“The potential for pressure on household financing could well hold back not only already very stretched first-time buyers but existing homeowners hoping to try and climb another rung on the UK’s fabled win-win property ladder.”

Van Dulken also highlighted the fact estate agents expect a steep rise in rents to due to measures against buy-to-let curbing property supply. “Less supply may hinder chains and thus transactions,” he said.

British Airways and Iberia parent International Consolidated Airlines Group flew lower after it cut its target for average annual earnings before interest, taxes depreciation, amortisation and rental costs to around €5.3bn from 5.6bn previously.

On the upside, Paddy Power Betfair was the standout gainer as it upped its guidance for underlying earnings this year to between £390m and £405m from £365m to £385m. The group also said on Friday that third-quarter sales were up 25% to £404m.

Risers

Paddy Power Betfair (PPB) 8,915.00p 3.90%
SSE (SSE) 1,577.00p 0.90%
United Utilities Group (UU.) 929.50p 0.81%
Rolls-Royce Holdings (RR.) 712.50p 0.71%
National Grid (NG.) 1,024.50p 0.39%
Severn Trent (SVT) 2,269.00p 0.18%
BAE Systems (BA.) 533.50p -0.19%
Diageo (DGE) 2,064.00p -0.31%
Experian (EXPN) 1,497.00p -0.33%
Centrica (CNA) 213.00p -0.42%

Fallers

Hikma Pharmaceuticals (HIK) 1,645.00p -5.73%
Dixons Carphone (DC.) 324.60p -4.95%
Royal Bank of Scotland Group (RBS) 185.50p -4.33%
Taylor Wimpey (TW.) 140.90p -4.21%
Persimmon (PSN) 1,684.00p -4.21%
3i Group (III) 627.00p -3.98%
Whitbread (WTB) 3,551.00p -3.58%
International Consolidated Airlines Group SA (CDI) (IAG) 435.20p -3.46%
Travis Perkins (TPK) 1,339.00p -3.32%
Next (NXT) 4,927.00p -3.20%