FTSE 100 movers: Miners recover but G4S tumbles on RBC note

London’s FTSE 100 was down 1.3% to 6,098.40 at 1515 GMT as weaker-than-expected Eurozone GDP and US retail sales figures undermined sentiment.

Glencore, Anglo American and BHP Billiton were the standout gainers as metals prices traded sideways following heavy losses in the previous session, although copper was still in the red. "The lack of a significant pick-up in sequential activity in China’s ‘old economy’ since the collapse during the first quarter of 2015 is of increasing concern to us," Goldman Sachs said in a research report dated 12 November.

Security firm G4S was the biggest faller, hit hard after RBC Capital Markets cut its price target on the stock to 210p from 230p, noting that organic growth has slowed of late. The Canadian bank said management is talking a long-term improvement story. “However, exceptionals, business shrinkage and downgrades continue,” said RBC, adding that investment is tough while net debt/EBITDA remains so high. It added that the stock has been a poor performer, down 10% this year, but with a full valuation relative to peers.

B&Q owner Kingfisher was in the red. The company is due to release third quarter earnings on 24 November and Jefferies had a note out on the stock on Friday saying it expects the group to confirm a mixed French performance. “We anticipate another good showing in UK sales, albeit diluted by the start of stock clearance as the cleaning up of the tail starts,” said Jefferies, which rates the stock at ‘hold’ with a 350p price target.

Aerospace and engineering firm Rolls-Royce suffered losses for a second day running – albeit much less severe – after it said on Thursday that earnings for the year will be at the low end of guidance as it downgraded its expectations for next year and warned of a possible dividend cut. Fitch Ratings cut its outlook on RR to ‘negative’ from ‘stable’ on Friday, saying the move reflects its view that key financial metrics, such as free cash flow and gross leverage may no longer be commensurate with the current ratings from 2016.

“Fitch believes that the financial profile of Rolls is likely to recover in the medium- to long-term as a consequence of restructuring measures improving the group's cost structure as well as stabilisation in some key end-markets. However, should the recovery stall or take longer-than-expected, leading to a prolonged period of weak cash generation, a downgrade is likely.”

FTSE 100 - Risers

Glencore (GLEN) 97.41p 1.55%
Anglo American (AAL) 456.80p 1.53%
BHP Billiton (BLT) 890.50p 1.50%
easyJet (EZJ) 1,807.00p 1.46%
GKN (GKN) 283.80p 1.39%
Royal Mail (RMG) 445.20p 0.95%
Rio Tinto (RIO) 2,254.50p 0.74%
CRH (CRH) 1,763.00p 0.57%
Randgold Resources Ltd. (RRS) 3,942.00p 0.48%
Intertek Group (ITRK) 2,542.00p 0.47%

FTSE 100 - Fallers

G4S (GFS) 224.90p -4.78%
Aberdeen Asset Management (ADN) 323.00p -3.67%
Schroders (SDR) 2,891.00p -2.92%
Kingfisher (KGF) 342.60p -2.92%
Rolls-Royce Holdings (RR.) 521.00p -2.89%
Burberry Group (BRBY) 1,276.00p -2.82%
Hikma Pharmaceuticals (HIK) 1,883.00p -2.74%
Old Mutual (OML) 191.20p -2.30%
Shire Plc (SHP) 4,463.00p -2.28%
Persimmon (PSN) 1,807.00p -2.17%