FTSE 250 movers: IMI gains after upgrade; CMC Markets drops on update

London’s FTSE 250 was up 0.2% to 18,161.96 in afternoon trade as investors mulled over the preliminary release of fourth-quarter UK GDP figures.

IMI was the standout gainer as Credit Suisse upgraded the stock to ‘outperform’ from ‘neutral’ and lifted the price target to 1,220p from 1,020p.

The upgrade of IMI is on the basis that around 60% of its end markets are depressed but have scope to recover. CS reckons that supported by cost cutting, the company’s margins can positively surprise.

CS noted than on an organic basis, IMI’s group revenues are 10% below 2014 levels with Oil & Gas and Nuclear markets significantly more depressed. The bank sees improving lead indicators for IMI’s business and expects organic growth to trough in 2017, particularly in the Critical business, which has driven earnings downgrades.

Card Factory was also a high riser after saying it is confident of delivering full-year underlying pre-tax profit slightly ahead of analyst consensus as it reported a rise in sales for the 11 months to the end of September and announced the departure of its chief financial officer.

Total sales in the 11 months were up 4.3%, with like-for-like sales up 0.4%. This was a slowdown from 8.1% and 2.8% growth, respectively, the previous year.

The company said it is likely to exceed the range of analysts' expectations for underlying profit before tax for the year to 31 January 2017, which currently stand at between £80.9m and £83.0m.

TP Icap was on the front foot as Morgan Stanley said it was among its top picks in the diversified financials sector.

Tullow Oil was in the black as Numis upgraded the stock to ‘hold’ from ‘sell’ on share price weakness and further analysis of the Uganda deal.

Developer and manager of student accommodation, Unite Group, was stronger after announcing it has secured planning consent for two city centre developments in Birmingham and Sheffield totalling 1,186 student bedrooms.

Spreadbetting company CMC Markets tumbled after it said activity in the third quarter had improved somewhat from the second, but cautioned over uncertainty from a regulatory clampdown on spread betting.

Halfords was on the back foot as its stock went ex-dividend.

Risers

IMI (IMI) 1,170.00p 4.00%
Capital & Counties Properties (CAPC) 277.30p 3.24%
TP ICAP (TCAP) 453.00p 3.07%
Card Factory (CARD) 251.10p 2.91%
Tullow Oil (TLW) 303.90p 2.77%
Ibstock (IBST) 189.90p 2.43%
JRP Group (JRP) 145.20p 2.33%
Unite Group (UTG) 593.50p 2.24%
Amec Foster Wheeler (AMFW) 463.00p 2.12%
IP Group (IPO) 193.80p 2.00%

Fallers

Polymetal International (POLY) 877.00p -6.05%
Ferrexpo (FXPO) 140.50p -4.55%
Hochschild Mining (HOC) 229.10p -4.02%
Acacia Mining (ACA) 394.80p -3.64%
Vedanta Resources (VED) 1,031.00p -3.46%
Halfords Group (HFD) 365.00p -3.44%
Ted Baker (TED) 2,894.00p -3.08%
CMC Markets (CMCX) 111.00p -2.63%
Centamin (DI) (CEY) 143.60p -2.51%
Petra Diamonds Ltd.(DI) (PDL) 153.50p -2.42%