FTSE 250 movers: Fidessa benefits from quiet reflection

The FTSE 250 was surpassing its blue chip brother by mid-afternoon on Wednesday, rising back over 2% above the 16,000 mark for the first time in two weeks

Auto Trader got off to a quick start, rising through the gears to an 8% rise in the first few minutes as the company said after a good third quarter it expected full year results would be marginally ahead of current market expectations.

But the shares moved back into the middle lane as, although the automotive marketplace operator remained positive about the trading environment going forward, investors noted that management could sell chunks of shares soon with lock-up agreements entered into at the time of the initial public offering in March 2015 come to an end on 18 March 2016.

Given a dearth of other FTSE 350 news, investors took the opportunity to reassess shares in several companies that had made recent updates and were looking a bargain after January's sell-off.

HSBC gave Electrocomponents a helping hand, upgrading it to 'buy' after a trading update from the company last week when the electronic products distributor said it had been making good progress on its self-help plans, remaining on track to deliver £25m annualised savings and identify further efficiencies.

Electrocomponents was lifted from its prior 'hold' rating and given an increased target price of 250p.

"Even with weak trading we see value," HSBC's analysts wrote, reflecting the view that the self-help plans will help the company successfully ride out China's slowdown and currency pressures.

Similarly Fidessa continued its strong comeback after Monday's in-line results, where it assured that the current investment programme to expand its range of markets and a potential investment in a new fixed income platform, were not likely to have a material impact on its ability to pay further special dividends in the future.

Shore Capital said, given the share price decline since the first half results, it thought the shares were beginning to look attractive, especially with a consensus forecast 3.8% dividend yield for 2016 and 85% recurring revenue.

Another top riser was Pendragon, which on Tuesday posted results where full year profits accelerated 22.3% to £79m and said it still expected to see growth in its aftersales and used car markets with the new car sector stable.

The shares were helped by comments made public on Wednesday from broker Numis, saying that while not its top pick in the auto sector, it felt Pendragon "is positioned to benefit from a solid auto retail backdrop and the shares offer good value" at a ratio of nine times 2016 earnings.

Miner Vedanta was a big riser despite credit agency S&P downgrading to a 'B' rating and being placed on 'negative' rating watch due to its weak financial position and refinancing risk.

FTSE 250 - Risers

Fidessa Group (FDSA) 2,279.00p 11.12%
Vedanta Resources (VED) 266.00p 10.33%
Electrocomponents (ECM) 227.50p 8.59%
Nostrum Oil & Gas (NOG) 277.90p 8.30%
Pendragon (PDG) 38.33p 7.97%
Interserve (IRV) 404.10p 7.36%
Sophos Group (SOPH) 205.30p 6.82%
Savills (SVS) 698.00p 6.56%
Senior (SNR) 220.00p 6.28%
Amec Foster Wheeler (AMFW) 372.80p 5.94%

FTSE 250 - Fallers

Acacia Mining (ACA) 223.20p -1.28%
Ladbrokes (LAD) 119.60p -1.24%
NMC Health (NMC) 802.00p -1.23%
Zoopla Property Group (WI) (ZPLA) 217.70p -1.05%
Weir Group (WEIR) 906.00p -0.93%
Centamin (DI) (CEY) 78.90p -0.75%
NB Global Floating Rate Income Fund Ltd GBP (NBLS) 85.85p -0.52%
BH Macro Ltd. GBP Shares (BHMG) 2,007.00p -0.30%
International Public Partnerships Ltd. (INPP) 140.20p -0.07%
Electra Private Equity (ELTA) 3,326.00p 0.00%