FTSE 250 movers: DFS tanks as Advent cuts stake; Tullett gains on Q3

London’s FTSE 250 was down 1.8% to 17,264.17 in afternoon trade.

DFS shares slid as US private equity firm Advent International cut its stake in the furniture retailer by half.

Funds managed by advent sold 25.7m shares, or 12.1% through an accelerated bookbuild secondary placing to institutional investors, in which Jefferies and UBS acted as bookrunners.

The shares were sold at 240p each, raising gross proceeds of £61.7m.

Settlement of the placing is expected to take place on 8 November, after which Advent will have 25.7m shares in the company.

Housebuilders Crest Nicholson, Redrow and Bovis were under the cosh. Mike van Dulken, head of research at Accendo Markets, attributed the decline to several factors.

He pointed to Thursday’s more balanced view from the Bank of England on the interest rate outlook. In addition, he said a very weak pound has sent the BoE’s inflation expectations through the roof.

“The potential for pressure on household financing could well hold back not only already very stretched first-time buyers but existing homeowners hoping to try and climb another rung on the UK’s fabled win-win property ladder.”

Van Dulken also highlighted the fact estate agents expect a steep rise in rents to due to measures against buy-to-let curbing property supply. “Less supply may hinder chains and thus transactions,” he said.

On the upside, temporary power provider Aggreko advanced as Morgan Stanley upped the stock to ‘equalweight’ from ‘underweight’ and lifted the price target to 900p from 850p.

“We retain our concerns over long-term pressures on the International power Projects (IPP) business model. However, we upgrade as the shares now trade almost two standard deviations below mid-cycle multiples, 2017 consensus estimates look supported, and we see signs that underlying trading and returns should improve in 2017,” it said.

Tullett Prebon rose after reporting a 15% jump in third-quarter revenue as it got a boost from the weaker pound, as 60% of group revenues are denominated in US dollars.

For the quarter to the end of September, revenue rose to £216m from £188m in the same period last year, which was a 4% increase at constant exchange rates.

In the nine months to the end of September, revenue was 7% higher, or 2% higher at constant currency, at £647m.

Risers

Tullett Prebon (TLPR) 381.10p 3.67%
CYBG (CYBG) 280.30p 1.96%
P2P Global Investments (P2P) 809.00p 1.76%
Entertainment One Limited (ETO) 239.60p 1.65%
Aggreko (AGK) 798.00p 1.20%
Pennon Group (PNN) 814.50p 1.18%
Rank Group (RNK) 196.90p 0.82%
3i Infrastructure (3IN) 194.40p 0.62%
Barr (A.G.) (BAG) 499.70p 0.54%
HICL Infrastructure Company Ltd (HICL) 171.00p 0.35%

Fallers

DFS Furniture (DFS) 236.90p -10.16%
Crest Nicholson Holdings (CRST) 413.20p -4.99%
Intermediate Capital Group (ICP) 589.00p -4.92%
Regus (RGU) 234.10p -4.88%
Redrow (RDW) 379.30p -4.87%
Mitchells & Butlers (MAB) 268.60p -4.82%
Bovis Homes Group (BVS) 773.50p -4.62%
Tate & Lyle (TATE) 771.00p -4.46%
Carillion (CLLN) 243.10p -4.44%
Tullow Oil (TLW) 248.20p -4.32%