FTSE 100 movers: Tesco on top while Inmarsat loses steam

The FTSE 100 was just above the line in Friday afternoon trading, having spent much of the session in the red after the IMF warned Brexit would have a 'detrimental' impact on the UK economy.

Grocery giant Tesco was among the top risers, after it emerged its chief executive Dave Lewis was awarded a £3m bonus last year for his part in the retailer’s ongoing turnaround.

The company published its annual report today, confirming the positive figures seen in preliminary numbers, with Tesco’s board saying its financial targets for the year “were met almost fully”.

When added to his base salary of £1.25m, as well as pension contributions and other perks, Lewis’ total package was £4.6m - a 12% rise on the previous year.

He took up the top job in September 2014, just before an accounting scandal revealed £326m was missing from its books.

Analysts have lauded him since then for slowing its previously steep sales declines and aggressively axing parts of the business not seen as core or earnings-enhancing.

In lighter Tesco news, photos of the Queen grinning with delight were published as she won a £50 gift card to the grocer, after her horse Barber’s Shop won the Tattersalls & RoR Thoroughbred Ridden Show.

In an apparent turnaround from the metals volatility seen this week, two of the South American miners were also looking up - Antofagasta and Fresnillo were both among the top risers.

On the downside, the satellite communications industry continued its dire fortnight with Inmarsat among top fallers.

The slide came after its competitor Eutelsat issued a morning warning on its growth prospects, sending its own shares towards losses of 30%.

Last week, Inmarsat issued its own quarterly numbers which included a profit warning, leading to a 20% drop in the ensuing days.

“The recent guidance cut by Inmarsat and yesterday’s cut by Eutelsat may be a coincidence, but nevertheless it calls into question Inmarsat’s explanation of its near-term guidance cut,” said analysts at Berenberg in a morning note.

Coca-Cola HBC was another faller, after its first quarter numbers revealed a 2.7% drop in net sales revenue as a result of weak emerging market currencies and a strong euro.

On a constant currency basis, the continental bottler claimed a 2% increase in sales.

It also reported good growth in Nigeria, Romania and Poland, offsetting performance in Russia.

The numbers came in below expectations, with investors clearly airing the disappointment at the company in afternoon trading.

Commercial broadcaster ITV was still sliding downhill after a poorly-received update on Thursday, in which it lowered its forecast for first-half advertising revenues.

The group said advertisers appeared to be keeping their wallets closed amid the market uncertainty before the Brexit referendum.

“This is not a temporary Brexit blip,” said analysts at Deutsche Bank.

“On a day when Facebook is reported to be set to overtake Channel 4 in ad revenues in the UK, and we estimate has already overtaken ITV in online video, 3% consensus ad growth from 2017 needs to be cut too.”

FTSE 100 - Risers

Tesco (TSCO) 161.70p 3.92%
Standard Chartered (STAN) 508.70p 3.80%
Fresnillo (FRES) 1,098.00p 2.14%
Lloyds Banking Group (LLOY) 66.17p 1.94%
HSBC Holdings (HSBA) 430.90p 1.74%
Morrison (Wm) Supermarkets (MRW) 189.90p 1.71%
BHP Billiton (BLT) 820.60p 1.65%
Antofagasta (ANTO) 412.70p 1.63%
Barclays (BARC) 165.10p 1.38%
ARM Holdings (ARM) 920.50p 1.38%

FTSE 100 - Fallers

Inmarsat (ISAT) 747.50p -5.86%
Coca-Cola HBC AG (CDI) (CCH) 1,317.00p -5.73%
Mediclinic International (MDC) 837.50p -4.56%
Direct Line Insurance Group (DLG) 363.50p -2.68%
ITV (ITV) 205.10p -2.33%
DCC (DCC) 6,150.00p -2.07%
RSA Insurance Group (RSA) 467.10p -1.85%
Admiral Group (ADM) 1,835.00p -1.82%
InterContinental Hotels Group (IHG) 2,625.00p -1.61%
Royal Mail (RMG) 491.20p -1.58%