FTSE 250 movers: Melrose lifted by Numis upgrade; IWG slumps on CEO share sale

The domestically-focused FTSE 250 was down 0.3% to 19,806.39 in afternoon trade, dented by a weaker pound.

Melrose Industries was boosted by an upgrade to 'buy' from 'add' at Numis.

Outsourcer Mitie racked up healthy gains after announcing that it has been awarded a new contract with affordable housing provider Home Group worth around £84m. The contract has an optional seven-year extension which would bring the total value to £168m.

On the downside, Domino's Pizza was hit after Investec initiated coverage of the stock with a 'sell' rating and 271p price target, pointing to a number of challenges.

The brokerage highlighted rising competition, increased price discounting, new store cannibalisation and a weak consumer environment, all of which are expected to last for some time. In addition, it said rising food and labour costs will squeeze margins. Consequently, franchisee profits are likely to come under pressure in FY17, potentially leading to some risk around the timing of new store openings.

IWG was under the cosh after chief executive Mark Dixon sold £94.2m worth of shares in the serviced office business he founded almost 30 years ago. Dixon's Estorn vehicle placed 27.3m shares in the company at a price of 345.1p apiece, broker UBS announced after markets closed overnight.

Assura was in the red after saying it will place up to 164m new ordinary shares or around 9.9% of the company's existing issued share capital to fund its acquisition and development pipeline. The placing, which is being conducted via an accelerated bookbuilding process, is expected to be in the range of 58p to 60p per share.

Tullow Oil and Hunting gushed lower as oil prices tanked, slipping into bear market territory, with West Texas Intermediate down 3.3% to $43.01 a barrel and Brent crude down 3% to $45.53.

Risers

Syncona Limited NPV (SYNC) 159.10p 3.85%
Melrose Industries (MRO) 259.30p 2.13%
BTG (BTG) 687.50p 2.00%
PZ Cussons (PZC) 355.60p 1.98%
Serco Group (SRP) 120.10p 1.78%
National Express Group (NEX) 379.00p 1.66%
Electra Private Equity (ELTA) 1,797.00p 1.64%
Mitie Group (MTO) 301.90p 1.58%
TP ICAP (TCAP) 486.10p 1.57%
Crest Nicholson Holdings (CRST) 543.00p 1.50%

Fallers

Domino's Pizza Group (DOM) 292.60p -7.26%
IWG (IWG) 334.90p -6.84%
Ferrexpo (FXPO) 180.40p -5.40%
Tullow Oil (TLW) 150.10p -5.18%
Kaz Minerals (KAZ) 471.90p -4.34%
Essentra (ESNT) 559.00p -3.62%
OneSavings Bank (OSB) 385.90p -3.53%
Assura (AGR) 61.30p -3.46%
Hunting (HTG) 460.60p -3.46%
Vedanta Resources (VED) 582.00p -3.24%