FTSE 250 movers: Trump win bumps up Balfour Beatty but slams Tate & Lyle

The FTSE 250 index rose 0.37% to 17,512.05 in the late afternoon.

Gold miners Centamin and Acacia mining gained as the price of gold went up by 2.3% after investors sought out safe haven investments in the wake of Trump’s victory. “Gold surged with ferocity on Wednesday as Trump’s victory triggered risk aversion which encouraged investors to frantically pile into safe-haven assets,” said FXTM analyst Luzdary Hamman.

Meanwhile British infrastructure groups Balfour Beatty and Hill & Smith benefited from Trump’s pledge to improve infrastructure in the US.

Worldwide Healthcare Trust, which invests in the global healthcare sector, gained after Clinton’s loss as she had made it clear she wanted to increase regulation and combat high drug prices.

Workspace rose after reporting a jump in net rental income for the first half and hiking its dividend by 40%.

Defence technology providers Ultra Electronics and Cobham also benefitted from Trump’s win. He is likely to push NATO members to increase their spending to 2% of GDP if they want to maintain US support and the Republican administration will itself increase spending on defence.

British agribusiness Tate & Lyle however lost out on Trump’s victory with its profits at risk if he decides to pull America out of the North American Free trade agreement (NAFTA). Exane BNP Paribas downgraded its stance on the stock from ‘neutral’ to ‘underperform’ and cut its price target by 25% to 570p.

Analysts at the bank felt Trump's victory posed a threat to US-Mexican trade relations with him calling the NAFTA ‘the worst deal ever’. Exane believes losing Mexican access will be “disastrous” for the high fructose corn syrup (HFCS) industry, with an estimated 90% loss in industry capacity utilization. Given that North American corn sweeteners account for around 40% of Tate’s earnings before interest and tax (EBIT) the analysts expect Trump’s presidency to weigh on Tate's shares.

Aveva’s shares gave back some of the gains it made on the back of well received results on Tuesday.

Risers

Centamin (DI) (CEY) 168.50p 9.06%
Acacia Mining (ACA) 560.00p 8.11%
Balfour Beatty (BBY) 282.20p 7.67%
Worldwide Healthcare Trust (WWH) 2,091.00p 7.07%
Hill & Smith Holdings (HILS) 1,133.00p 6.38%
Ultra Electronics Holdings (ULE) 1,929.00p 6.28%
Cobham (COB) 156.50p 5.74%
Weir Group (WEIR) 1,689.00p 5.63%
Workspace Group (WKP) 681.00p 5.42%
Petra Diamonds Ltd.(DI) (PDL) 156.30p 5.04%

Fallers

Tate & Lyle (TATE) 666.50p -10.90%
Aveva Group (AVV) 1,704.00p -4.00%
International Personal Finance (IPF) 282.00p -3.89%
Templeton Emerging Markets Inv Trust (TEM) 588.50p -3.05%
JPMorgan Emerging Markets Inv Trust (JMG) 716.50p -2.91%
Laird (LRD) 131.60p -2.81%
Greencore Group (GNC) 302.40p -2.73%
PZ Cussons (PZC) 323.00p -2.68%
Smurfit Kappa Group (SKG) 1,767.00p -2.48%
Jardine Lloyd Thompson Group (JLT) 957.00p -2.40%