FTSE 250 movers: Tullow surges on Moller-Maersk deal; investors hang up on TalkTalk

London’s FTSE 250 index was up 0.2% to 17,191.02 at 1510 GMT as investors continued to mull over last Friday’s stronger-than-expected US non-farm payrolls report and its implications on the timing of the next Fed rate hike.

Tullow Oil was the standout gainer after Copenhagen-based A.P. Moller-Maersk A/S agreed to buy half of Africa Oil Corp.’s shares in licenses in Kenya and Ethiopia, where Tullow operates some blocks. “The news for Tullow is very positive and has brought buyers back today,” said Atif Latif, director of trading at Guardian Stockbrokers, adding that it gives more potential upside to Tullow’s assets in the region.

Temporary power provider Aggreko also racked up healthy gains as it maintained its full-year profit expectations despite a challenging market backdrop and a fall in third quarter sales. In a trading update for 1 July to 8 November, the company said underlying revenue for the period was 7% behind last year, with reported revenue down 6%. This was partly a result of the continuing weak economic backdrop in Brazil.

But investors were encouraged by news the company was sticking to its guidance for 2015 full-year pre-tax profit of between £250m and £270m.

Henderson Group and Jupiter Fund Management were lifted on weekend newspaper reports that either might be a potential target as US banking giant Wells Fargo looks to make an acquisition of a City of London asset manager. The UK fund management industry is seen by some investors as an attractive long-term bet due to recent pension reforms, the Sunday Times said, while Wells large American market share in retail banking has forced CEO John Stumpf to look overseas to sake his thirst for growth.

On the downside, investors were hanging up on TalkTalk after HSBC downgraded the stock to ‘hold’ from ‘buy’ and slashed the price target to 260p from 430p. It said the data breach that occurred in October will have lasting consequences on the telecommunications company.

“While we do not believe that TalkTalk faces an existential risk from this hack, the implications for the company are potentially far-ranging. The company has issued two updates following the incident, and in light of those, we have reappraised our view of its near-term prospects.”

Also weighing on the stock was a report in the Daily Telegraph suggesting the company might scrap its dividend as its finances come under pressure from the cyber attack.

Shares in Capital & Counties Properties slid after it confirmed it was conducting a strategic review that could lead to the sale of its venues business. “Following the successful transition of shows from the former Earls Court Exhibition Centres and a major refurbishment programme, Capco confirms that it is conducting a strategic review which may or may not lead to a sale of its Venues business.”

The statement followed newspaper reports suggesting the company was mulling the sale of the Olympia Exhibition Centre.

FTSE 250 - Risers

Tullow Oil (TLW) 248.60p 13.93%
Premier Oil (PMO) 81.25p 8.55%
Aggreko (AGK) 1,000.00p 7.30%
Serco Group (SRP) 105.00p 5.69%
Hunting (HTG) 362.60p 5.32%
Weir Group (WEIR) 1,184.00p 4.50%
Wood Group (John) (WG.) 592.50p 3.13%
Henderson Group (HGG) 293.10p 3.10%
Amec Foster Wheeler (AMFW) 540.00p 2.96%
Jimmy Choo (CHOO) 156.10p 2.70%

FTSE 250 - Fallers

TalkTalk Telecom Group (TALK) 216.90p -4.07%
Marshalls (MSLH) 331.00p -2.73%
Grainger (GRI) 237.10p -2.51%
Aveva Group (AVV) 2,049.00p -2.34%
Bellway (BWY) 2,442.00p -2.05%
Crest Nicholson Holdings (CRST) 513.00p -1.91%
Centamin (DI) (CEY) 60.75p -1.86%
Capital & Counties Properties (CAPC) 419.70p -1.85%
Genus (GNS) 1,443.00p -1.77%
Stagecoach Group (SGC) 357.10p -1.76%