FTSE 250 movers: National Express gains but Countrywide slumps

London’s FTSE 250 was down 0.1% to 17,848.99 in afternoon trade.

Phoenix Group was the standout gainer as its right issue started.

National Express gained after posting a rise in revenue and profit for the three months to the end of September.

Segro was higher after Barclays lifted the stock to ‘overweight’ from ‘equalweight’ and upped the price target to 520p from 450p, saying the company was the largest and most liquid way to play the logistics investment theme.

With around 40% of the portfolio located in greater London – including Heathrow and Park Royal campuses – Barclays reckons the group is well placed to serve the growing need for urban logistics.

In addition, it said that having recently replenished the land bank through a number of purchases, Segro is well positioned to deliver “excellent development returns” as it helps supply the required real estate solutions to these changing supply chains.

On the downside, Countrywide was under the cosh as Jefferies downgraded the stock to ‘hold’ from ‘buy’ and slashed the price target to 180p from 300p.

The bank cut its calendar year 2016 earnings per share estimate by 24% and its estimate for 2017 by 31% on the back of weak housing transaction data from the Land Registry, weak mortgage approval data and its view that Countrywide will scale back its expansion for as long as stamp duty levels and Brexit uncertainties temper activity in the UK housing market.

The Land Registry published transaction data for June last week that showed transactions in England were down 32% year-on-year and 54% in inner London. In the year to 30 June, housing transactions were down 5% in England and 16% in inner London.

Mitchells & Butlers was on the back foot after Citigroup downgraded the stock to ‘sell’. It said even though the stock has rallied around 30% since the July lows, “the risk of a Brexit-induced slowdown as well as ongoing capex and pension payments continue to depress our cash flow forecasts”.

Aldermore and Shawbrook were weaker after Credit Suisse downgraded its rating on both stocks to ‘neutral’ from ‘outperform’. CS warned that the risks facing the UK's challenger banks were "becoming harder to ignore" heading into 2017.

FTSE 250 - Risers

Phoenix Group Holdings (DI) (PHNX) 755.50p 3.90%
National Express Group (NEX) 369.00p 3.80%
Cobham (COB) 144.20p 3.22%
Kaz Minerals (KAZ) 274.20p 3.12%
Vedanta Resources (VED) 702.00p 3.01%
TalkTalk Telecom Group (TALK) 209.20p 2.60%
Acacia Mining (ACA) 538.00p 2.48%
Ocado Group (OCDO) 275.00p 2.00%
SEGRO (SGRO) 448.50p 1.93%
Electrocomponents (ECM) 375.80p 1.82%

FTSE 250 - Fallers

Laird (LRD) 159.00p -5.07%
Countrywide (CWD) 192.50p -4.70%
Howden Joinery Group (HWDN) 380.40p -4.54%
Mitchells & Butlers (MAB) 274.00p -3.04%
Aldermore Group (ALD) 170.70p -2.90%
Shawbrook Group (SHAW) 237.60p -2.34%
Meggitt (MGGT) 431.30p -2.31%
AO World (AO.) 170.10p -2.30%
Wetherspoon (J.D.) (JDW) 865.50p -2.20%
Polypipe Group (PLP) 253.40p -2.20%