FTSE 100 movers: Next surges while Randgold slides

The FTSE 100 was in the red in afternoon trading on Wednesday, as investors reacted to worse-than-expected UK

High street fashion retailer Next was being rewarded for bringing its guidance to more manageable levels for the current financial year. The firm reported total sales for the February-April quarter take a 0.2% dip, with full-price sales declining at the lower end of its full-year sales guidance at 0.9%. Its total group profit before tax is now expected to be between £748m and £852m.

“We believe it is unlikely (but possible) that sales will deteriorate further, and we have seen a significant improvement over the last few days as temperatures have risen,” Next’s board said in a statement.

Insurer Direct Line was also a favourite among the risers, after it reported a 4.2% rise in gross written premiums for the first quarter, to £777.8m. Motor gross written premiums were up 10.5%, with motor and home own brands in-force policies growing for a second consecutive quarter.

Chief executive officer Paul Geddes said: “This was another quarter of top line growth for Direct Line Group, as customers responded favourably to the many improvements we have made to the business over the last few years.”

Miner Randgold Resources was under pressure, after admitting that its Loulo-Gounkoto project in Mali carried it to first quarter profit, as its Kibali and Tongon miners were significantly impacted by commissioning and technical issues. Production was down 11% in the period, but profit was 19% higher at $63.9m as the group tightened its focus on profitability and received an average gold price 9% higher during the quarter.

"Despite last year's record production, we replaced 76% of our reserves and all our resources depleted, and our exploration teams continue to hunt for additional ounces around our existing operations as well our next big discovery,” said Randgold chief executive Mark Bristow.

Supermarket chain Sainsbury’s was also slipping after reporting a 13.8% fall in underlying profit before tax to £587m, although that was still better than the consensus forecast of £575m. At the statutory level the company broke even with a £548m pre-tax profit, from the £72m loss the previous year.

"Our core food business performed well, underpinned by our quality investment programme, our simpler pricing strategy and lower regular prices," said chief executive Mike Coupe.

FTSE 100 - Risers

Next (NXT) 5,165.00p 3.76%
Rolls-Royce Holdings (RR.) 653.00p 1.71%
Direct Line Insurance Group (DLG) 372.20p 1.06%
Admiral Group (ADM) 1,922.00p 1.00%
easyJet (EZJ) 1,448.00p 0.91%
TUI AG Reg Shs (DI) (TUI) 990.50p 0.81%
International Consolidated Airlines Group SA (CDI) (IAG) 514.00p 0.78%
BAE Systems (BA.) 479.80p 0.76%
Aviva (AV.) 434.80p 0.60%
Provident Financial (PFG) 2,938.00p 0.48%

FTSE 100 - Fallers

Randgold Resources Ltd. (RRS) 5,930.00p -10.22%
Sainsbury (J) (SBRY) 268.60p -5.99%
BHP Billiton (BLT) 828.80p -5.31%
Tesco (TSCO) 161.15p -4.79%
London Stock Exchange Group (LSE) 2,571.00p -4.39%
Paddy Power Betfair (PPB) 8,865.00p -3.33%
Fresnillo (FRES) 1,039.00p -2.99%
Glencore (GLEN) 145.85p -2.64%
Anglo American (AAL) 649.50p -2.43%
Morrison (Wm) Supermarkets (MRW) 186.60p -2.25%