FTSE 250 movers: Esure bucks insurance trend; Kaz slumps on downgrade
London's FTSE 250 was up 0.1% to 18,604.60 in afternoon trade as Esure bucked the trend in the insurance sector.
Engineer IMI was the standout gainer as Credit Suisse reiterated its 'outperform' rating on the stock and lifted the price target to 1,300p from 1,220p,
Dechra Pharmaceuticals pushed up after hiking its interim dividend by 10% as it posted a rise in profit.
Rotork also advanced as it reported a drop in full-year pre-tax profit and adjusted operating profit as underlying revenue fell, but noted an improvement in the trading environment.
Price comparison website Moneysupermarket.com racked up healthy gains as it looked set to benefit from rising motor insurance prices after the Ministry of Justice said the discount rate used to calculate lump sum payouts has been cut to -0.75% from the 2.5% rate that was in place since 2001. The change in the rate will mean insurers will have to pay out more to personal injury claimants.
RBC Capital markets said price comparison website were likely to benefit from the changes as higher prices lead to more switching.
Meanwhile, insurer esure fared a lot better than its FTSE 100 peers Admiral and Direct Line, gaining ground after saying it expects 2016 group profit to be ahead of market expectations, largely driven by a strong investment return.
The company said its 2017 capital position would only be hit by £2m from the Ogden discount rate changes, but its reserve margin allowance had to be increased to £3m from £2m.
Kaz Minerals lost its shine after HSBC downgraded the stock to 'reduce' from 'hold' and cut the price target to 400p from 440p, as it pointed to the recent share price performance and the stock's expensive valuation.
Senior was weaker after it said revenue in 2016 rose 8% to £917m, although at constant currencies the change was a 2% drop, while operating profit fell 9% to £65.8m.
Events organiser Ascential declined despite releasing a solid first set of annual results as a listed company.
Risers
IMI (IMI) 1,257.00p 3.80%
Dechra Pharmaceuticals (DPH) 1,597.00p 3.70%
National Express Group (NEX) 363.70p 3.35%
Rotork (ROR) 243.40p 3.22%
Vesuvius (VSVS) 458.20p 2.99%
esure Group (ESUR) 213.10p 2.70%
Carillion (CLLN) 213.30p 2.55%
Moneysupermarket.com Group (MONY) 346.10p 2.22%
International Personal Finance (IPF) 189.70p 2.21%
Evraz (EVR) 233.70p 2.10%
Fallers
Kaz Minerals (KAZ) 516.50p -5.66%
Senior (SNR) 177.50p -5.08%
CLS Holdings (CLI) 1,692.00p -2.20%
Centamin (DI) (CEY) 172.90p -2.10%
Capital & Counties Properties (CAPC) 291.30p -2.05%
Vedanta Resources (VED) 867.50p -1.98%
CYBG (CYBG) 264.80p -1.89%
Cobham (COB) 116.00p -1.86%
Metro Bank (MTRO) 3,491.00p -1.86%
Ascential (ASCL) 300.50p -1.83%