FTSE 250 movers: Oil shares slip while FirstGroup perseveres

The second-tier index fell 0.97% to 17,628.67 in late afternoon trading.

Goldman Sachs has kept british transport company FirstGroup on its conviction buy list (‘CL-Buy’), with its analysts telling clients they see 61% potential upside to the stock. The investment bank expects the company’s turnaround program aimed at margin recovery in the UK Bus and Student segment and attractive overseas exposure to deliver strong earnings growth.

Shares in medical device group Vectura were boosted as analysts moved to factor in the recent weakening in the pound into their profit estimates and positive read-across from Novartis´s results released in the previous session, with which the London-listed company is partnered on a handful of products. Novartis reported strong third quarter growth in Ultibro sales to $95m, up 38% year on year.

American fund manager BlackRock has upped its holding in Petra Diamonds to 74.7m shares from 62.2m shares. Analyst at Shore Capital Yuen Low shares BlackRock’s positive sentiment saying the miner is past ‘peak capex’ and if all goes to plan it should be free cash flow-positive from the second half of 2017 and cash flows should rise “strongly” in 2018, suggesting that dividend payments can be resumed then.

Meanwhile, the three day slide in oil prices has sent shares in oil companies Petrofac, Hunting, Cairn Energy down.

NCC, an independent cyber security and risk mitigation expert, was down for a fifth day after a profit warning was issued on 20 October 2016. Despite revenues increasing by 36% and organic growth at 21% the firm has experienced a number of setbacks to do with contracts at its Assurance Division.

Lancashire Holdings, a specialty insurance company, were downgraded by HSBC from ‘buy’ to ‘hold’.

FTSE 250 - Risers

Vectura Group (VEC) 138.80p 6.20%
Petra Diamonds Ltd.(DI) (PDL) 156.80p 4.19%
Euromoney Institutional Investor (ERM) 1,048.00p 3.25%
FirstGroup (FGP) 108.00p 3.05%
Sports Direct International (SPD) 283.90p 3.05%
Keller Group (KLR) 692.50p 2.90%
Ocado Group (OCDO) 279.50p 2.38%
Aldermore Group (ALD) 173.50p 2.36%
Thomas Cook Group (TCG) 69.40p 2.06%
UDG Healthcare Public Limited Company (UDG) 660.00p 1.46%

FTSE 250 - Fallers

Petrofac Ltd. (PFC) 869.50p -3.92%
Sophos Group (SOPH) 226.70p -3.70%
Hunting (HTG) 505.00p -3.63%
Morgan Advanced Materials (MGAM) 268.50p -3.42%
NCC Group (NCC) 200.10p -3.38%
BGEO Group (BGEO) 2,954.00p -3.24%
Hill & Smith Holdings (HILS) 1,068.00p -3.00%
Lancashire Holdings Limited (LRE) 702.50p -2.97%
Just Eat (JE.) 507.00p -2.97%
Cairn Energy (CNE) 207.70p -2.76%