FTSE 250 movers: Tullow and Premier surge on oil price; Tullett slumps on downgrade

London’s FTSE 250 index was flat at 17,175.73 at 1345 GMT as investors digested data showing UK construction sector growth slowed in October.

Tullow Oil and Premier Oil were on the front foot as Brent crude futures and West Texas Intermediate rose. The former was also benefitting from positive comments out of broker Citi and a report that its partner in Ghana, Kosmos Energy, said a new project in the African country was due to be completed next year.

Shares in engineering group Weir rose after it said it expects full-year earnings to be broadly in line with current market consensus and announced further job cuts as part of its cost-cutting plans.

“We will focus on delivering further cost and procurement savings, alongside strong cash generation. We continue to expect a sequential improvement in our second half performance with our full year earnings expectations broadly in line with market consensus,” it said.

Transport operator Stagecoach advanced as it welcomed the Tyne and Wear Quality Contract Scheme Review Board’s decision that the bus franchising proposal presented by the North East Combined Authority had failed to meet the necessary requirements.

William Hill was also in the black after Barclays upgraded the stock to ‘overweight’ from ‘equalweight’ and lifted the price target to 415p from 385p as it took a look at the European gaming sector. Barclays pointed out that the stock is down 24% since June versus the FTSE 250 down 6% over the same period and the shares now look cheap.

It said the stock has de-rated from 16x to 12x price-to-earnings, adding that it hasn’t looked this cheap relative to the market for five years.

Shares in Tullett Prebon fell sharply after Barclays downgraded the stock to ‘underweight’ from ‘equalweight’ and slashed the price target to 310p from 385p on valuation concerns. It noted the stock has strongly outperformed year to date, up 22% versus the FSTE All Shares which is down 1%.

The bank pointed to a deteriorating volume outlook for inter-dealer broker markets in 2015 and a relative lack of progress on electronic/post-trade services expansion.

Jardine Lloyd Thompson was under pressure after it downgraded its profit expectations for 2015 as the insurance firm’s UK employee benefits business took a hit from government pension changes and the strengthening of the pound.

Indivior was lower after the specialty pharmaceuticals company posted a 9% drop in third-quarter revenue but lifted its revenue and income guidance for the full year. For the three months to the end of September, net revenue came in at $766m (£498m) compared with $844m (£548.6m) in the same period last year. The company said strong market growth was offset by lower market share and higher rebates in connection with formulary access in the US.

Food delivery group Just Eat fell despite lifting its revenue guidance for the full year after reporting a sharp increase in orders for the third quarter. Peel Hunt said the company was seeing good momentum but long-term pricing remains a concern.

Redrow and Bovis Homes Group took a hit after Liberum downgraded its stance on peers Barratt Developments, Persimmon and Taylor Wimpey, pointing to margin pressures.

“We believe the largest housebuilders’ valuations are too optimistic to withstand the gross margin pressure that we expect in the coming years as house price inflation is suppressed by a more vigilant regulator and build cost inflation returns,” it said.

FTSE 250 - Risers

Tullow Oil (TLW) 228.40p 14.03%
Premier Oil (PMO) 76.25p 6.94%
Weir Group (WEIR) 1,126.00p 4.74%
Evraz (EVR) 88.15p 4.69%
Stagecoach Group (SGC) 369.80p 4.67%
Supergroup (SGP) 1,487.00p 3.26%
P2P Global Investments C (P2P2) 985.00p 3.14%
Cairn Energy (CNE) 156.10p 3.10%
Rotork (ROR) 194.00p 2.65%
William Hill (WMH) 324.20p 2.24%

FTSE 250 - Fallers

Tullett Prebon (TLPR) 330.00p -6.09%
Redrow (RDW) 445.90p -5.37%
Jardine Lloyd Thompson Group (JLT) 914.00p -4.89%
Indivior (INDV) 206.20p -3.42%
Just Eat (JE.) 428.00p -2.93%
Crest Nicholson Holdings (CRST) 536.50p -2.81%
Daejan Holdings (DJAN) 6,200.00p -2.36%
Virgin Money Holdings (UK) (VM.) 380.10p -2.24%
Grainger (GRI) 245.50p -1.76%
Bovis Homes Group (BVS) 1,009.00p -1.75%