FTSE 250 movers: Vectura anticipates Advair letter, Travis Perkins hit by Grafton update

The FTSE 250 was on the front foot on Tuesday, with the index up 0.5% to 19,832.81 just before the close.

Euromoney Institutional Investor rose 5% after UBS initiated coverage of the stock on Monday with a 1,135p price target that still offers more upside to current levels.

Despite further weakness in iron ore prices, mining stocks enjoyed a welcome respite, helped by a positive update from analysts at Macquarie, which saw Ferrexpo and Kaz Minerals join its blue chip brethren on the front foot.

IG analyst Chris Beauchamp said: "The embattled mining sector is finally seeing some support, despite little sign of a real turnaround in the ongoing fall in commodity prices."

Inhaler maker Ventura was lifted as investors looked ahead to the outcomes of the US drug regulator's announcement over the company's partnered programme with Hikma Pharmaceuticals for a generic version of Advair. The Food & Drug Administration in accepting its Abbreviated New Drug Application, gave Hikma a goal date of 10 May, with Vectura due to receive $11m on approval of the file plus a mid-teen percentage royalty on net sales of VR315 in the US.

With some market commentary painting this as a binary event of approval or non-approval, broker Numis reminded Vectura investors that there are three types of FDA complete response letter (CRL) and four outcomes, including a first pass approval, which would drive significant forecast and valuation upgrades; one calling for a "minor" amendment to the ANDA; one calling for a "major" amendment from a larger number of what are still minor observations; and a CRL that requires a major amendment due to a major observation such as bioequivalence or a device issue requiring further study, which scenario would imply a valuation downgrade.

Travis Perkins was the biggest faller after an update from builders merchanting rival Grafton, which said revenue for the first four months of the year was up 7.7% to £851m as favourable conditions from the end of 2016 continued combined with the benefits of exposure to multiple markets.

But while Grafton expected a continuation of the favourable trends in the Irish and Netherlands businesses, it was more cautious about the prospects for the UK, which hit its rival.

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 884.50p 4.00%
Glencore (GLEN) 290.55p 2.14%
BHP Billiton (BLT) 1,148.00p 2.04%
Johnson Matthey (JMAT) 3,152.00p 2.04%
Fresnillo (FRES) 1,429.00p 2.00%
Paddy Power Betfair (PPB) 8,395.00p 1.76%
WPP (WPP) 1,710.00p 1.73%
AstraZeneca (AZN) 4,681.00p 1.64%
InterContinental Hotels Group (IHG) 4,222.00p 1.61%
Antofagasta (ANTO) 765.50p 1.59%

FTSE 100 - Fallers

Micro Focus International (MCRO) 2,466.00p -6.56%
GKN (GKN) 353.10p -1.64%
Centrica (CNA) 199.80p -1.28%
Royal Bank of Scotland Group (RBS) 264.00p -0.98%
SSE (SSE) 1,438.00p -0.76%
Lloyds Banking Group (LLOY) 68.93p -0.75%
Vodafone Group (VOD) 203.80p -0.66%
BT Group (BT.A) 305.15p -0.47%
Informa (INF) 656.50p -0.45%
London Stock Exchange Group (LSE) 3,376.00p -0.44%

FTSE 250 - Risers

Euromoney Institutional Investor (ERM) 1,085.00p 4.83%
Ferrexpo (FXPO) 157.60p 4.79%
Carillion (CLLN) 224.30p 4.04%
Vectura Group (VEC) 150.00p 4.02%
Kaz Minerals (KAZ) 444.60p 3.28%
Renishaw (RSW) 3,613.00p 3.14%
Supergroup (SGP) 1,613.00p 2.74%
Cineworld Group (CINE) 728.50p 2.68%
Paragon Group Of Companies (PAG) 483.40p 2.48%
Paysafe Group (PAYS) 473.80p 2.47%

FTSE 250 - Fallers

Travis Perkins (TPK) 1,633.00p -3.71%
Allied Minds (ALM) 148.50p -3.26%
Hastings Group Holdings (HSTG) 302.40p -2.29%
Nex Group (NXG) 610.00p -2.17%
Card Factory (CARD) 318.80p -2.03%
AA (AA.) 259.90p -2.00%
BGEO Group (BGEO) 3,645.00p -1.67%
ZPG Plc (ZPG) 366.10p -1.64%
Aggreko (AGK) 853.00p -1.50%
Capita (CPI) 572.50p -1.46%