FTSE 250 movers: Analysts lead resources higher, Interserve sinks

The FTSE 250 was cruising just below the line on Thursday afternoon, as investors digested fresh data pointing to weak consumer confidence, and a wider current account deficit in the fourth quarter.

Analyst notes saw resources leading the pack, with Acacia Mining up after having its ‘buy’ rating reiterated by Deutsche Bank in a morning note. The bank set a target price of 340p on the stock, which represented a 28.2% potential upside from its last close. The rating was the first since Peel Hunt downgraded the stock to a ‘hold’ on 11 March.

Kaz Minerals was also up after having its target prices boosted to 170p, from 150p by Jefferies Group on Wednesday. The firm currently had a ‘hold’ rating on the copper miner’s stock. BNP Paribas had reiterated its ‘underperform’ rating on Tuesday, putting a 120p price target in the stock, suggesting a potential downside of 27.32%.

AO World was also surging in afternoon trading, after the online electrical goods retailer said it enjoyed a better fourth quarter than expected. In a pre-close trading update, it said it now expected full-year UK revenue growth of around 18.5% with revenue growth from AO.com of around 27%, and UK adjusted EBITDA of around £17m.

Interserve was being pushed down after chief executive Adrian Ringrose purchased 13,879 shares on Wednesday, at an average cost of 458p per share. The stock had opened at 440.7p on Thursday morning. The company was also facing criticism in the Midlands, where a number of porters, maintenance and cleaning staff at Leicester’s hospitals claimed they were being stonewalled over questions regarding overdue overtime pay, as their employment was being transferred back to the local hospitals. Leicester’s hospitals had announced their intention to end the contract with Interserve four years early, in February.

Electrocomponents was under the cosh after announcing the retirement of Rupert Soames as non-executive director after nine years on the board. Soames would step down after the next AGM.

Shares in Hays were also trending downwards, even after Goldman Sachs reiterated its ‘buy’ rating on the stock in a morning note. The note set a price target of 180p on Hays, indicating a potential upside of 44% from its opening price of 125p on Thursday.

FTSE 250 - Risers

Acacia Mining (ACA) 282.70p 6.60%
Kaz Minerals (KAZ) 173.60p 5.15%
AO World (AO.) 180.90p 4.69%
Lancashire Holdings Limited (LRE) 556.00p 3.83%
Serco Group (SRP) 103.10p 3.77%
Riverstone Energy Limited (RSE) 818.50p 3.48%
NMC Health (NMC) 1,063.00p 2.90%
Mitchells & Butlers (MAB) 280.30p 2.90%
Fidessa Group (FDSA) 2,485.00p 2.56%
OneSavings Bank (OSB) 337.60p 2.49%

FTSE 250 - Fallers

Aldermore Group (ALD) 208.00p -5.45%
Interserve (IRV) 436.90p -4.04%
Moneysupermarket.com Group (MONY) 316.50p -3.59%
Melrose Industries (MRO) 357.10p -3.28%
Allied Minds (ALM) 465.00p -3.00%
Electrocomponents (ECM) 241.90p -2.54%
Polypipe Group (PLP) 317.50p -2.13%
Euromoney Institutional Investor (ERM) 960.00p -2.09%
Hays (HAS) 122.50p -1.84%
Entertainment One Limited (ETO) 150.70p -1.82%