FTSE 100 movers: Reckitt rallies on results; IAG flies higher on upgrade

London’s FTSE 100 was up 2% to 5,820.13 at 1440 GMT, rebounding from last week’s losses following positive cues from Asia.

Consumer goods giant Reckitt Benckiser was the standout gainer after its full year results beat analysts’ expectations.

In the year to 31 December, total net revenue grew 5% at constant currency to £8.87bn, and like-for-like revenue was up 6%, exceeding company targets.

Reckitt's gross margin expanded during the year by 140 basis points to 59.1%, which the company's board said was driven by a mix of commodity costs and cost optimisation initiatives.

Retail property heavyweight Hammerson was also a high riser after saying full year pre-tax profits rose to £731.6m from £703.1m as UK consumer confidence improved.

Net rental income was up to £318.6m from £305.6m while the company's net property portfolio valuation grew to £8.4bn from £7.7bn.

Gross rental income was up to £236m from £206m in a year where Hammerson made several large acquisitions.

British Airways and Iberia parent International Consolidated Airlines flew higher on Monday after Bank of America Merrill Lynch upgraded its stance on the stock to ‘buy’ from ‘underperform’ with an unchanged price target of 610p.

Overall, the bank reiterated its structurally bearish equity and credit view on the European airlines.

“However, we continue to appreciate that even the most value-destructive companies can have ‘their day in the sun,’ particularly in these increasingly volatile times”.

It upgraded IAG as she shares have over-shot on the downside, ahead of a likely robust fourth quarter earnings update on Friday 26 February.

Rolls-Royce was a touch weaker following stellar gains on Friday, when investors welcomed the aerospace and defence group’s decision to cut its dividend for the first time in 25 years.

It cut its dividend by 50% to 7.1p and said it would be halved again at the next interim stage, as it reported a 12% drop in full year underlying profits that was not as bad as some had feared.

Moody’s senior vice president and lead Rolls-Royce analyst, Russell Solomon, said on Monday that the decision to cut the dividend was prudent and credit enhancing.

“Rolls-Royce’s dividend cut is credit positive as it illustrates management’s conviction to adhere to historically conservative financial policies in support of maintaining a strong credit profile,” he said.

Risers

Reckitt Benckiser Group (RB.) 6,356.00p 6.54%
Hammerson (HMSO) 561.50p 4.95%
Standard Chartered (STAN) 448.65p 4.58%
International Consolidated Airlines Group SA (CDI) (IAG) 501.50p 4.52%
Shire Plc (SHP) 3,798.00p 4.37%
Prudential (PRU) 1,207.50p 4.32%
Aberdeen Asset Management (ADN) 229.70p 4.22%
GKN (GKN) 265.80p 4.07%
Old Mutual (OML) 166.60p 4.06%
Hargreaves Lansdown (HL.) 1,173.00p 3.81%

Fallers

Fresnillo (FRES) 870.00p -3.01%
Randgold Resources Ltd. (RRS) 5,985.00p -2.76%
SABMiller (SAB) 4,150.00p 0.05%
BHP Billiton (BLT) 699.40p 0.40%
Rolls-Royce Holdings (RR.) 609.00p 0.50%
Rio Tinto (RIO) 1,859.00p 0.62%
Berkeley Group Holdings (The) (BKG) 3,201.00p 0.63%
BP (BP.) 335.00p 0.75%
Rexam (REX) 598.50p 0.76%
TUI AG Reg Shs (DI) (TUI) 1,016.00p 0.79%