FTSE 250 movers: Vedanta gains on outlook for zinc, Ocado loses out on Amazon deal

The FTSE 250 index was down 0.48% at 17,488.87 at 1604 GMT on Wednesday.

Goldman Sachs upgraded Vedanta Resources from ‘Neutral’ to ‘Buy’, raised its price target from 450p to 1,300p and added it to their Conviction List, sending its shares up. The bank believes the price of zinc will remain high and will translate into positive earnings for the company with the metal making up 40% of the earnings before interest tax and amortisation (EBITDA). The miner’s increase in aluminium production and merger with Cairn should also increase cash flow.

Electrocomponents gained as HSBC upgraded its stock to ‘buy’ from ‘hold’ and lifted the price target to 430p from 240p. The bank pointed out that investor sentiment towards the company has shifted. “Electrocomponents has refocused its product offering, restructured its cost base, simplified its discounts structure, and addressed its purchasing.” As a result, the group is now less exposed to currency fluctuations and is striving to buy cheaper, hold for less and sell at a better price.

Cranswick shares rose as it announced its acquisition of Northern Irish pork processing business Dunbia Ballymena for an undisclosed sum. The company said the deal enhances its pig processing capability and establishes a significant presence in Northern Ireland.

Electronic markets, inter-dealer broking and information provider ICAP slumped even as it told investors it enjoyed a boost in trading activity from the weakness of the pound and the US election.

Analysts at Numis described the interim results as "mixed" and pointed out the firm's lower than expected guidance for its 2018 dividend towards 7.0 to 8.0p (Numis: 16.0p). "Following the shares strong recent performance, we move our recommendation to HOLD from BUY," the broker said.

Meanwhile British online supermarket Ocado was down after its competitor Morrisons expanded its partnership with Amazon through a new ‘Morrisons at Amazon’ service. Amazon Prime customers in selected areas in London and Hertfordshire could now order a full Morrisons shop online via the Prime Now app.

Shares in outsourcing company Mitie were under the cosh on Wednesday as RBC Capital Markets downgraded its stance on the stock to ‘underperform’ from ‘sector perform’ and cut the price target to 160p from 195p ahead of first-half results. “In our view (and given recent market developments), it is difficult to foresee any real improvement. Ahead of the new CEO being introduced to the market, we therefore make a pre-emptive cut to both forecasts and dividends and move to underperform,” the broker said.

Risers

Vedanta Resources (VED) 801.50p 5.46%
B&M European Value Retail S.A. (DI) (BME) 256.10p 4.53%
Paysafe Group (PAYS) 402.40p 3.39%
NMC Health (NMC) 1,373.00p 3.23%
Sophos Group (SOPH) 240.40p 2.60%
Polypipe Group (PLP) 292.00p 2.38%
Electrocomponents (ECM) 373.00p 2.19%
Riverstone Energy Limited (RSE) 1,279.00p 2.16%
Cranswick (CWK) 2,273.00p 2.11%
Petra Diamonds Ltd.(DI) (PDL) 151.70p 2.09%

Fallers

ICAP (IAP) 483.30p -9.24%
Ocado Group (OCDO) 258.20p -8.50%
Euromoney Institutional Investor (ERM) 1,030.00p -6.11%
Mitie Group (MTO) 208.60p -4.44%
Allied Minds (ALM) 352.80p -3.92%
Aggreko (AGK) 778.50p -2.93%
Keller Group (KLR) 767.00p -2.79%
Countrywide (CWD) 195.00p -2.69%
Tullett Prebon (TLPR) 412.40p -2.69%
Carillion (CLLN) 253.10p -2.65%