FTSE 100 movers: Prudential pushes higher; Kingfisher hit by broker note

London’s FTSE 100 was up 0.2% at 7,474.22 in afternoon trade on Wednesday.

Prudential was the top riser on index as the insurer posted a better-than-expected 6% rise in first-half operating profits as Chinese investors bought its products in Hong Kong after Covid restrictions were lifted. It also outlined a new investment strategy pivot towards Asia.

Housebuilders Persimmon and Taylor Wimpey were on the front foot again, having rallied on Tuesday on news that Michael Gove was set to relax planning rules in a bid to boost housebuilding.

On the downside, Kingfisher was the biggest loser after JPMorgan Cazenove trimmed its price target on shares of the B&Q owner and placed them on ‘negative catalyst watch’ ahead of first-half results next month.

The target price on the ‘underweight’ rated stock was cut to 220p from 230p.

Kingfisher is scheduled to report H1 24 results on 19 September.

JPM said: "Whilst data for UK and French home improvement has remained strong, both countries slowed in July, and housing markets have softened.

"Combined with our view that we could see more promotional behaviour from competitor Leroy Merlin (as it targets regaining share) we continue to see downside risk to forecasts (we sit 5%/ 9% below FY 24 / FY 25E profit before tax consensus) and therefore place the stock on negative catalyst watch."

JPM said its multiples-based target price was cut to reflect changes to its forecasts.

The bank expects Q2 group like-for-like sales down 3.6% year-on-year, and H1 24 pre-tax profit of £355m, in line with guidance for £350m.

FTSE 100 - Risers

Prudential (PRU) 1,018.00p 3.37%
Fresnillo (FRES) 585.20p 2.56%
Smith (DS) (SMDS) 313.70p 1.78%
Rolls-Royce Holdings (RR.) 216.50p 1.69%
Persimmon (PSN) 1,056.50p 1.68%
Taylor Wimpey (TW.) 114.60p 1.51%
Smurfit Kappa Group (CDI) (SKG) 3,336.00p 1.46%
RS Group (RS1) 757.20p 1.31%
Land Securities Group (LAND) 604.00p 1.31%
Bunzl (BNZL) 2,844.00p 1.28%

FTSE 100 - Fallers

Kingfisher (KGF) 230.70p -2.49%
JD Sports Fashion (JD.) 142.30p -1.90%
International Consolidated Airlines Group SA (CDI) (IAG) 161.35p -1.07%
Next (NXT) 6,898.00p -0.86%
Hiscox Limited (DI) (HSX) 995.00p -0.80%
SSE (SSE) 1,638.00p -0.79%
Hargreaves Lansdown (HL.) 771.00p -0.64%
Associated British Foods (ABF) 1,985.50p -0.58%
CRH (CDI) (CRH) 4,531.00p -0.57%
BT Group (BT.A) 115.40p -0.56%