FTSE 250 movers: Car dealers drive higher while Aggreko powers down

London's FTSE 250 was up 0.48% at 19,076.77 in afternoon trade on Wednesday, as automotive retailers were boosted by the UK car market's strong third quarter performance.

Car dealerships BCA Marketplace and Inchcape were on the rise as Britain’s used car market remained near recent record highs in the third quarter of 2018, according to figures released by the Society of Motor Manufacturers and Traders.

Mike Hawes, SMMT chief executive, said: "It is encouraging that the UK used car market has remained solid in the third quarter of the year, and good news that there is growing enthusiasm for alternatively powered vehicles. The right policies and incentives from government are needed to encourage new car buyers to take up the latest, cleanest petrol, diesel and electric models that best suit their driving needs."

The companies were also buoyed by results from AIM-listed peer Marshall Motor, which said earlier that it expects underlying pre-tax profits to come in ahead of its last trading year following the introduction of new emissions regulations.

Polymetal made gains as it was added to the MSCI Russia Index for the first time since it listed on the Moscow Stock Exchange in June 2013.

The index has 23 constituents, including Lukoil Holding, Sberbank Russia and Gazprom, and represents 85% of the float-adjusted market cap in Russia.

On the downside, temporary power generation equipment supplier Aggreko was the top faller a day after its third-quarter update, while residential property business Grainger was close behind despite reporting a set of "strong" full-year results, with its adjusted earnings rising 26% to £94.0m.

The company also announced that it had conditionally agreed to acquire the entire share capital and shareholder loans in GRIP REIT from its joint venture partner APG for £396m.

Oilers Petrofac, Hunting and Premier Oil all dropped after Russia's energy minister said no emergency action was warranted to stem consistent declines in oil prices.

Alexander Novak told reporters that the market, which had rallied by mid-afternoon, was "volatile due to a lot of uncertainty", and that the fallout from US sanctions against Iran and how buyers would behave was still not fully understood.

Builders' merchant and DIY group Grafton inched lower, giving back some of the gains it made on Tuesday following a well-received trading update.

Berenberg reiterated its 'buy' rating on the stock, stating that although Brexit sentiment is likely to continue to weigh on the shares in the nearer term, "Grafton offers compelling value at current levels and remains our standout name in the builders’ merchant space".

FTSE 250 - Risers

BCA Marketplace (BCA) 215.00p 7.61%
Cranswick (CWK) 3,004.00p 5.63%
Convatec Group (CTEC) 167.75p 5.47%
Spectris (SXS) 2,115.00p 4.44%
Inchcape (INCH) 587.00p 4.26%
888 Holdings (888) 177.80p 4.22%
IP Group (IPO) 115.60p 4.14%
Polymetal International (POLY) 734.20p 4.02%
Dechra Pharmaceuticals (DPH) 2,232.00p 3.53%
Sophos Group (SOPH) 328.20p 3.40%