FTSE 250 movers: Market turns on US job data

The FTSE 250 was still in the green mid-afternoon on Friday by 10.29 points (0.06%) at 6,097.02, but the second-tier market was tracking downwards.

Just Eat led the risers after it revealed it had ordered four online takeaway food businesses in Spain, Italy, Brazil and Mexico for a total of €125m (£94.7m).

The company announced on Friday it bought Spain’s La Nevera Roja and Italy’s PizzaBo (hellofood Italy) from Rocket Internet, while it purchased hellofood Brazil and hellofood Mexico from foodpanda. It said the acquisitions are in line with its strategy to bring scale, focus and new talent to its local operations.

Orders for the newly acquired businesses grew by 83% in 2015, while gross assets at the end of 2014 were €6.4m (£5.0m). However, gross losses to 31 December 2014 were €16.3m (£13.1m). "This transaction reflects our ambition to make strategic, value-enhancing acquisitions that consolidate our leadership of the global digital marketplace for takeaway food delivery,” said chief executive David Buttress. The news also saw shares in sector peer Domino’s Pizza Group fall.

Ocado was up after a relatively positive note from Exane BNP Paribas. The investment bank retained its rating at ‘neutral’ but cut its target price to 275p.

While it said the company’s UK fourth quarter trading and full year results were underwhelming, it still remained “best in class” as it developed its ‘IP’. “We expect International deals in-time, but with a UK valuation below the prevailing share price, investors can’t just own Ocado for deals,” it said. The bank also highlighted that customer shopping frequency continues to increase and gross sales per customer hold up.

Rotork and Weir Group were on the risers list as oil prices were tracking up for most of the day. West Texas Intermediate was sitting at $31.48 while Brent Crude was at $34.34.

Sentiment turned in the market late in the afternoon after non-farm payrolls data from the US that employers added less jobs than expected in January.

The unemployment rate fell to 4.9% from 5% in December, nearing an eight-year low. Economists had expected the rate to remain unchanged at 5%. Average hourly earnings rose 2.5% year-on-year in January, beating forecasts for a 2.2% increase.

"However confident Janet Yellen and her Fed colleagues were when raising interest rates in December, the US data released in January must be giving them food for thought – and today’s poor non-farm payroll figures are no different," said Dennis de Jong, managing director at UFX.com.

"Adding less than 200 thousand jobs for the first time since October, coupled with lower than expected GDP and productivity figures, has taken some of the shine off of the previously buoyant US economy."

FTSE 250 - Risers

Just Eat (JE.) 389.20p 8.11%
Countrywide (CWD) 381.80p 7.34%
Ocado Group (OCDO) 260.00p 6.12%
Meggitt (MGGT) 369.90p 5.81%
Rotork (ROR) 163.80p 5.68%
Vedanta Resources (VED) 243.20p 5.33%
Bodycote (BOY) 555.50p 5.31%
Entertainment One Limited (ETO) 144.80p 5.08%
Weir Group (WEIR) 881.50p 5.00%
Millennium & Copthorne Hotels (MLC) 409.40p 4.97%

FTSE 250 - Fallers

Domino's Pizza Group (DOM) 899.00p -5.47%
Marshalls (MSLH) 284.20p -4.63%
Thomas Cook Group (TCG) 100.60p -4.19%
St. Modwen Properties (SMP) 361.80p -3.78%
Virgin Money Holdings (UK) (VM.) 308.00p -3.27%
Auto Trader Group (AUTO) 389.80p -2.72%
Howden Joinery Group (HWDN) 475.00p -2.68%
SSP Group (SSPG) 280.20p -2.64%
Aldermore Group (ALD) 200.50p -2.62%
Rightmove (RMV) 3,733.00p -2.58%