FTSE 100 movers: Supermarkets fall amid Campylobacter outrage, energy stocks drop
The share price of UK supermarket chain Sainsbury was under pressure on Thursday after Shore Capital downgraded its rating from 'hold' to 'sell', saying investors should expect a "material contraction in profitability". The broker said it sees "few attractions in holding Sainsbury's shares". It expects a 30% "reset" in earnings per share and is forecasting three years of declines in Sainsbury's profits and dividends.
Acacia Mining
234.00p
16:45 16/09/19
BG Group
n/a
n/a
Food & Drug Retailers
4,369.80
15:45 15/11/24
FTSE 100
8,060.61
15:45 15/11/24
FTSE 250
20,508.75
15:45 15/11/24
FTSE 350
4,453.56
15:45 15/11/24
FTSE All-Share
4,411.85
15:45 15/11/24
Media
12,522.60
15:45 15/11/24
Mining
10,633.77
15:45 15/11/24
Morrison (Wm) Supermarkets
286.40p
16:55 26/10/21
Oil & Gas Producers
8,043.72
15:45 15/11/24
Rio Tinto
4,804.50p
15:45 15/11/24
Sainsbury (J)
243.00p
15:44 15/11/24
Sky
1,727.50p
16:34 06/11/18
Tesco
345.50p
15:45 15/11/24
Supermarkets Tesco and Morrison also saw share prices drop. UK supermarkets were slammed by the media on Thursday after they failed without exception to meet the Foods Standards Agency’s targets regarding the presence of Campylobacter in raw poultry. Bosses were told they should "hang their heads in shame" by The Consumer Association.
Energy stocks slumped after OPEC reportedly held on to its production target despite a recent supply glut having pushed oil prices to their lowest in four years. Stocks such as Shell, Tullow Oil, BP and BG Group were trading much lower as Brent crude prices dropped 6% to $73.10 a barrel.
BG Group was also feeling the heat as the proposed £25m pay package for its new boss Helge Lund continues to spark anger. The Institute of Directors branded the remuneration "excessive" and"inflammatory".
Sky's share price dropped as Deutsche Bank reinstated its 'hold' rating and 1,000p target price, saying that "investors can afford to wait" amid material near-term uncertainties regarding the company's future. The bank said: “Near-term, the new group faces choppy waters: UK Premier League rights renewal, Sky Italia without Champions League from next season and increased competition in the UK triple play/quad play market.” It previously had a 'buy' recommendation on the stock with a 1,100p target price.
Meanwhile, Rio Tinto shares jumped after it approved the $350m development of a fourth kimberlite pipe at its 60%-owned subarctic Canadian diamond mine, Diavik. Production will provide an important source of incremental supply for Diavik, ensuring the continuation of existing production levels, the company said.
Risers
Smith & Nephew (SN.) 1,134.00p +2.44%
Admiral Group (ADM) 1,244.00p +2.30%
Intu Properties (INTU) 355.30p +1.98%
ITV (ITV) 211.30p +1.98%
Barclays (BARC) 242.40p +1.85%
Mondi (MNDI) 1,089.00p +1.78%
EasyJet (EZJ) 1,571.00p +1.68%
TUI Travel (TT.) 424.40p +1.65%
Rio Tinto (RIO) 3,046.00p +1.47%
International Consolidated Airlines Group SA (CDI) (IAG) 443.10p +1.44%
Fallers
Petrofac Ltd. (PFC) 870.00p -3.28%
Morrison (Wm) Supermarkets (MRW) 177.90p -1.66%
Randgold Resources Ltd. (RRS) 4,401.00p -1.63%
Sainsbury (J) (SBRY) 235.20p -1.59%
BG Group (BG.) 1,035.00p -1.38%
Tesco (TSCO) 184.95p -1.20%
Fresnillo (FRES) 746.00p -1.19%
Sky (SKY) 914.50p -1.03%
Severn Trent (SVT) 2,030.00p -0.93%
United Utilities Group (UU.) 900.50p -0.88%