FTSE 250 movers: Aberdeen Asset surges on merger; miners slump
London’s FTSE 250 index was flat at 18,890.38 in afternoon trade, with M&A news failing to provide much of a boost.
Aberdeen Asset Management surged after agreeing terms for an £11bn merger with Standard Life, having revealed talks over the weekend.
The deal will see Aberdeen shareholders own roughly a third of the enlarged company and Standard Life's the rest, though the two companies will initially have an equal number of seats on the board.
Ultra Electronics rallied as strong cash generation and order intake helped the company drive full-year bottom-line growth despite delays to a small number of export contracts. The defence electronics specialist saw full-year 2016 top-line growth of 8.2% to £785.58m, while underlying profits before tax increased 6.9% to £120.1m.
On the downside, miners were trading lower, with Vedanta Resources, Evraz and Kaz Minerals all in the red after China - a major consumer of metals - said over the weekend that it is now targeting growth of 6.5% this year, down a touch from last years’ growth rate of 6.7% and from the government’s target growth range of 6.5% to 7% in 2016.
Acacia Mining was under the cosh as Jefferies downgraded the stock to ‘hold’ from ‘buy’ and cut the price target to 475p from 575p.
It said news flow late on Friday of the ban on copper/gold concentrate exports from Tanzania has direct and indirect impacts, negatively affecting several points of its prior investment thesis.
Commercial laundry group Berendsen was on the back foot after HSBC cut the stock to ‘hold’ from ‘buy’ and chopped its target price to 940p from 1,070p as it believes that its proposed investment in the UK is going to cost more than management currently calculates.
Pub group JD Wetherspoon fell back after Shore Capital and Peel Hunt cut their recommendations on the stock.
Risers
Aberdeen Asset Management (ADN) 299.60p 4.61%
Ultra Electronics Holdings (ULE) 2,072.00p 4.54%
Man Group (EMG) 145.80p 3.04%
Jupiter Fund Management (JUP) 434.70p 2.77%
IP Group (IPO) 155.70p 2.70%
Ashmore Group (ASHM) 368.60p 2.42%
Savills (SVS) 885.00p 2.08%
Moneysupermarket.com Group (MONY) 343.80p 1.72%
JPMorgan Indian Investment Trust (JII) 675.50p 1.66%
Allied Minds (ALM) 419.70p 1.45%
Fallers
Acacia Mining (ACA) 409.00p -11.28%
Vedanta Resources (VED) 857.50p -3.81%
Evraz (EVR) 221.90p -3.77%
Tullow Oil (TLW) 262.50p -3.03%
Kaz Minerals (KAZ) 505.00p -2.79%
Wetherspoon (J.D.) (JDW) 962.00p -2.78%
Berendsen (BRSN) 801.00p -2.73%
Aldermore Group (ALD) 233.90p -2.13%
Millennium & Copthorne Hotels (MLC) 453.70p -2.07%
BGEO Group (BGEO) 2,870.00p -2.05%