FTSE 100 movers: IMI rallies on Goldman upgrade; housebuilders fall

London’s FTSE 100 was down 1.9% at 7,416.25 in afternoon trade on Wednesday.

IMI was the top gainer after Goldman Sachs upgraded shares of the engineer to ‘buy’ from neutral’ and lifted the price target to 2,020p from 1,780p, saying it sees around 30% upside versus 17% for the sector.

The bank said it sees IMI as a beneficiary of both a sustained capex super-cycle as well as a potential recovery in short-cycle industrial production, where recent ISM manufacturing PMIs suggest inventories may be approaching a trough.

Smith & Nephew was also in the black as Bank of America Merrill Lynch upped its price target on the shares to 1,320p from 1,180p.

Despite the share price recovery of around 20% since October’s 10-year low, the bank thinks Smith & Nephew remains one of the few value opportunities in EU MedTech, with potential upside since the share price remains around 10% below the Covid trough.

Housebuilders Persimmon and Barratt Developments fell as the latest surprise jump in UK inflation dampened early rate cut hopes.

Miner Glencore was also in the red after China reported sluggish GDP growth.

FTSE 100 - Risers

IMI (IMI) 1,606.00p 3.55%
Smith & Nephew (SN.) 1,078.50p 1.27%
Convatec Group (CTEC) 246.00p 1.15%
International Consolidated Airlines Group SA (CDI) (IAG) 142.80p 0.49%
Hikma Pharmaceuticals (HIK) 1,977.50p 0.38%
BAE Systems (BA.) 1,185.00p 0.34%
InterContinental Hotels Group (IHG) 7,166.00p -0.14%
Relx plc (REL) 3,216.00p -0.25%
Rolls-Royce Holdings (RR.) 297.00p -0.40%
Burberry Group (BRBY) 1,221.50p -0.45%

FTSE 100 - Fallers

Ocado Group (OCDO) 584.60p -5.40%
Persimmon (PSN) 1,395.00p -5.01%
Glencore (GLEN) 417.60p -4.91%
Land Securities Group (LAND) 639.40p -4.34%
Unite Group (UTG) 985.00p -4.09%
Severn Trent (SVT) 2,513.00p -3.83%
Barratt Developments (BDEV) 517.40p -3.76%
SEGRO (SGRO) 822.60p -3.70%
United Utilities Group (UU.) 1,021.00p -3.45%
Frasers Group (FRAS) 782.00p -3.34%