FTSE 250: Rathbone rockets; miners glum

Rathbone Brothers shares surged on Tuesday as Numis upgraded its stance on the stock to ‘buy’ from ‘add’, with a 2,350p price target.

The brokerage said that with the stock trading at a discount of around 20% to its 10-year average price-to-earnings of 15x, it was an ideal time to invest in the quality play.

“During its 275 year history, Rathbone has successfully navigated its way through a number of storms. So whilst uncertainty surrounding Brexit may indeed impact near-term fund under management flows, we believe Rathbones’ conservative operating model combined with the long-term industry growth drivers should continue to support average earnings growth of around 10% per annum over the medium-term.”

Housebuilder and construction group Galliford Try shares rose as the company said it expects to report record full year results, with profit before tax meeting targets.

Despite the political and economic uncertainty, the FTSE 250 company's chief executive, Peter Truscott, said it was "too early" to predict specific effects on its markets, but took confidence from the strength of underlying demand for new homes and the continuing availability of mortgage finance and the government's Help-to-Buy scheme for both sides of the business.

Shares in Centamin and Acacia mining fell as the pound made ground after its post Brexit vote slump.

Market Movers

FTSE 250 (MCX) 16,818.86 0.67%

FTSE 250 - Risers

Rathbone Brothers (RAT) 1,919.00p 11.38%
Evraz (EVR) 158.50p 8.49%
Keller Group (KLR) 1,004.00p 7.26%
Galliford Try (GFRD) 940.00p 6.58%
Aldermore Group (ALD) 137.20p 6.52%
DFS Furniture (DFS) 203.30p 6.44%
Shawbrook Group (SHAW) 162.80p 6.27%
Brown (N.) Group (BWNG) 185.40p 5.82%
Marshalls (MSLH) 260.10p 5.47%
St. Modwen Properties (SMP) 267.00p 5.45%

FTSE 250 - Fallers

NMC Health (NMC) 1,122.00p -10.17%
Centamin (DI) (CEY) 158.80p -5.81%
Acacia Mining (ACA) 536.00p -4.20%
Rotork (ROR) 210.70p -3.61%
Hochschild Mining (HOC) 235.70p -3.20%
Ted Baker (TED) 2,237.00p -3.03%
UK Commercial Property Trust (UKCM) 76.25p -2.99%
Tate & Lyle (TATE) 689.50p -2.68%
CYBG (CYBG) 237.60p -2.50%
Genus (GNS) 1,711.00p -2.45%