FTSE 100 movers: Utilities gain; Ladbrokes owner Entain slides
London’s FTSE 100 was up 0.3% at 8,279.66 in afternoon trade on Monday.
Housebuilder Vistry was the standout gainer on the index, having tumbled last week after it warned on profits after underestimating build costs on nine schemes in its Southern Division.
Utilities SSE, Severn Trent and United Utilities were among the top risers.
Russ Mould, investment director at AJ Bell, said defensive stocks were "in vogue", implying that investors are slightly troubled about what might be coming down the line.
Bunzl was also in the black as JPMorgan Cazenove upgraded the shares to ‘overweight’ from ‘neutral’ and lifted the price target to 3,980p from 3,660p as it increased its medium-term underlying margin assumptions to reflect greater confidence in a positive trajectory.
The bank relaunched coverage of Bunzl in March with a ‘neutral’ rating, even as it wrote that Bunzl was "fundamentally more attractive than it was five years ago" given structurally higher margins.
JPM said its concerns were around any unwind of inflation benefits within margins and negative-for-longer volumes.
"Bunzl’s 1H24 update showcased the work that has gone ‘under the hood’ at the company on margins, supplemented by a clear capital allocation policy," it said.
"The key new information for us has been the clear upside to the North American margin from higher own brand penetration within Grocery and Foodservice (40% of group revenue, mid single digit percent upside to group EBITA), as over the past year Bunzl has secured manufacturing lines with suppliers."
Ladbrokes owner Entain and Flutter Entertainment were sharply lower following a report the government is planning a tax raid of up to £3bn on the gambling sector in this month’s Budget.
According to The Guardian, Treasury officials are understood to be weighing up proposals, put forward by two influential thinktanks and backed by one of the party’s top five individual donors, to double some of the taxes levied on online casinos and bookmakers.
FTSE 100 - Risers
Vistry Group (VTY) 951.50p 3.09%
SSE (SSE) 1,869.50p 2.16%
Severn Trent (SVT) 2,585.00p 1.93%
Bunzl (BNZL) 3,530.00p 1.85%
United Utilities Group (UU.) 1,049.00p 1.80%
BAE Systems (BA.) 1,291.00p 1.65%
GSK (GSK) 1,500.00p 1.35%
AstraZeneca (AZN) 11,902.00p 1.17%
Sage Group (SGE) 1,022.00p 1.14%
easyJet (EZJ) 501.00p 1.09%
FTSE 100 - Fallers
Entain (ENT) 712.40p -7.12%
Flutter Entertainment (DI) (FLTR) 17,785.00p -4.07%
Antofagasta (ANTO) 1,855.00p -3.26%
Croda International (CRDA) 3,958.00p -2.20%
Glencore (GLEN) 415.00p -2.18%
Fresnillo (FRES) 649.50p -2.11%
JD Sports Fashion (JD.) 128.40p -2.06%
Mondi (MNDI) 1,444.00p -1.60%
Unite Group (UTG) 908.50p -1.36%
Land Securities Group (LAND) 631.50p -1.33%