FTSE 100 movers: Randgold shines after results but ITV slumps on DB note

London's FTSE 100 was down 1.9% to 5,737.01 at 1420 GMT, tracking broader market losses, although Randgold Resources bucked the trend following well-received results.

Shares in ITV fell sharply on Monday as Deutsche Bank said the broadcaster was lagging the rest of the sector, which has kicked the year off strongly.

Deutsche, which hosted a conference call for investors with four UK media buyers and two advertising forecasters, said: “First quarter consensus for the UK TV market was +5% to 6%. A number of forecasts had been cut recently on weakening retail spend; supermarkets and DIY particularly cited. ITV was seen up 2-3% underlying, underperforming the market with C4 particularly strong.”

The bank, which rates the stock at 'sell' with a 220p price target, also pointed out that the inclusion of ITV Player for the first time this year was lifting the company’s year-on-year numbers.

Chip designer ARM Holdings was under the cosh ahead of its full year earnings results on Wednesday.

Anglo American was weaker after the company’s chief executive, Mark Cutifani, warned that miners should prepare for the most challenging year yet, as the commodity price rout looked set to continue.

In addition, Anglo American Platinum – a unit of Anglo American - posted a slump in headline earnings to ZAR107m for 2015 compared with ZAR786m the year before.

Rolls-Royce shares were under pressure on Monday amid reports management of the aerospace and defence group will cut the dividend this week for the first time in 25 years.

The company, which has issued five profit warnings in the last two years, announced in November a “major restructuring” aimed at saving between £150m and £200m per year from 2017.

It also warned in November that it might cut the dividend amid a slowdown in demand for spares and services for existing aero-engines.

Brenda Kelly, head analyst at London Capital Group, said consensus in the City is that Rolls will post underlying pre-tax profits of £1.3bn for 2015, down 20% from the previous year and below the company’s guidance of £1.33bn to £1.48bn.

Meanwhile, Mike van Dulken, head of research at Accendo Markets, said the possibility of a cut to income is a major theme among corporates as they deal with margin pressure amid a tough economic environment.

He said while RR’s 3% yield is far from the high single digits at risk among commodity-focused names, it highlights how bad things have got, “as if five profit warnings in less than two years wasn’t enough”.

Randgold Resources bucked the trend, racking up solid gains after the company lifted its dividend and reported record production for 2015 despite a drop in profit.

Production and costs were in line with the company's annual guidance, as it set a new production record of more than 1.2m ounces - up 6% on the previous year.

The firm reported strong cash flows from operations, boosting cash on hand by 158% to $213.4m, though profits for the year were down due to lower gold prices - to $212.8m from $271.2m a year earlier.

Nevertheless, Randgold's board proposed a 10% increase in the annual dividend, which the board said reflected the strong cash flows generated by the business.

FTSE 100 - Risers

Randgold Resources Ltd. (RRS) 5,545.00p 4.62%
Fresnillo (FRES) 811.00p 2.92%
Admiral Group (ADM) 1,707.00p 0.29%
Imperial Brands (IMB) 3,507.50p 0.23%
SABMiller (SAB) 4,129.00p -0.15%
easyJet (EZJ) 1,512.00p -0.59%
Reckitt Benckiser Group (RB.) 6,029.00p -0.64%
Burberry Group (BRBY) 1,210.00p -0.66%
British American Tobacco (BATS) 3,701.00p -0.68%
Diageo (DGE) 1,783.50p -0.72%

FTSE 100 - Fallers

Worldpay Group (WI) (WPG) 281.40p -6.76%
ARM Holdings (ARM) 931.00p -5.29%
ITV (ITV) 242.50p -5.09%
Berkeley Group Holdings (The) (BKG) 3,220.00p -5.01%
Hargreaves Lansdown (HL.) 1,160.00p -4.92%
Ashtead Group (AHT) 852.00p -4.91%
Anglo American (AAL) 345.55p -4.90%
London Stock Exchange Group (LSE) 2,219.00p -4.31%
Glencore (GLEN) 97.89p -4.17%
St James's Place (STJ) 837.00p -4.07%