FTSE 100 movers: Next gains on broker note; Burberry out of fashion

London’s FTSE 100 was up 1.1% to 7,020.85 in afternoon trade.

Retailer Next was the standout gainer on the back of a positive note by Deutsche Bank, which pointed out that in a difficult period for the UK clothing market, the company continues to gain market share.

“Continued market share gains year-to-date, much easier Q4 comparatives, more ‘short game’ product and recent innovations in Directory leave us confident Next should see a reacceleration in sales as seasonal peak approaches,” the bank said.

EasyJet flew higher despite an earnings downgrade from peer Ryanair, which reduced its full-year net profit guidance by 5% to a range of €1.30bn to €1.35bn as a result of the 18% drop in sterling following the Brexit vote.

Tesco was in the black after data from Kantar Worldpanel showed the supermarket grew its market share in the last three months for the first time in five years. Tesco grew sales by 1.3% and market share by 0.1 percentage point to 28.2%.

Polymetal gained ground after releasing its third-quarter production results, which showed gold output rose 29% quarter-on-quarter.

Luxury retailer Burberry was under pressure. Although the group’s like-for-like sales improved in the second quarter thanks to a spike in fashion-conscious tourists to the UK, wholesale revenues cast a stain on the results.

Education publisher Pearson was on the back foot after Deutsche Bank said the company has a “hill to climb to get to 2918 targets”.

“Pearson has avoided a profit warning thanks to one-time cost savings in areas like travel and a hiring freeze, but costs will return in 2017. We retain Sell,” it said.

Risers

Next (NXT) 4,735.00p 5.13%
easyJet (EZJ) 916.50p 4.92%
Dixons Carphone (DC.) 338.60p 4.54%
Marks & Spencer Group (MKS) 331.60p 3.66%
Tesco (TSCO) 208.60p 3.63%
Royal Bank of Scotland Group (RBS) 176.50p 3.58%
Glencore (GLEN) 237.15p 3.15%
Randgold Resources Ltd. (RRS) 7,030.00p 3.08%
Standard Chartered (STAN) 678.00p 2.98%
Polymetal International (POLY) 874.00p 2.82%

Fallers

Burberry Group (BRBY) 1,414.00p -6.48%
Rolls-Royce Holdings (RR.) 758.50p -1.94%
Pearson (PSON) 749.50p -1.70%
Intertek Group (ITRK) 3,577.00p -0.31%
GKN (GKN) 328.80p -0.06%
TUI AG Reg Shs (DI) (TUI) 1,055.00p -0.00%
Paddy Power Betfair (PPB) 8,710.00p 0.11%
DCC (DCC) 6,760.00p 0.15%
Hargreaves Lansdown (HL.) 1,157.00p 0.17%
Carnival (CCL) 3,763.00p 0.19%