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FTSE 100 movers: Kingfisher hit by downgrade but AstraZeneca makes gains

By Michele Maatouk

Date: Monday 21 Jan 2019

FTSE 100 movers: Kingfisher hit by downgrade but AstraZeneca makes gains

(Sharecast News) - London's FTSE 100 was flat at 6,966.66 in afternoon trade on Monday as investors eyed Theresa May's presentation of her Brexit 'Plan B' to Commons.
AstraZeneca was on the front foot after saying on Friday that its partner, Ironwood Pharmaceuticals, had received Chinese marketing authorisation for Linzess for the treatment of adult patients with irritable bowel syndrome with constipation.

BAE Systems was also trading higher after selling a 55% stake in its Land UK tank and combat vehicle division to Germany's Rheinmetall.

On the downside, B&Q owner Kingfisher was the worst performer after RBC Capital Markets cut its stance on the stock to 'underperform' from 'sector perform' as it argued that the earnings downgrade cycle was set to continue.

"We think it will take time for price cuts and new ranges to resonate with customers. The macro and housing backdrop remains unsupportive in the UK and France and our earnings forecasts are over 10% below consensus," RBC said, as it reduced its price target to 200p from 240p.

Housebuilders Berkeley Group and Taylor Wimpey fell as the latest survey from Rightmove showed the UK property market suffered its slowest start to the year this January since 2012.

House prices rose by 0.4% on the month this month, which was the lowest monthly rise this time of year since January 2012, but better than the 1.5% drop seen in December. On the year, house prices were also up 0.4%, slowing down from the 0.7% increase since in December.

The survey found that it has been a patchy but active start to the year, with more northerly regions faring better in terms of pricing power and willingness to move than those farther south.

Land Securities was lower following a report over the weekend suggesting that the Royal Institution of Chartered Surveyors could slash the value of UK shopping centres and high street stores after property agents were told to reflect the changes sweeping the retail industry.

According to the Sunday Times, RICS has told valuers to be "aware of the potential for significant changes in value" in retail properties.

FTSE 100 - Risers

London Stock Exchange Group (LSE) 4,528.00p 1.66%
AstraZeneca (AZN) 5,651.00p 1.45%
British American Tobacco (BATS) 2,575.00p 1.32%
Hargreaves Lansdown (HL.) 1,857.50p 1.25%
Melrose Industries (MRO) 171.50p 1.15%
Spirax-Sarco Engineering (SPX) 6,475.00p 1.09%
Smith & Nephew (SN.) 1,469.50p 1.00%
BAE Systems (BA.) 514.85p 0.95%
NMC Health (NMC) 2,782.00p 0.87%
Bunzl (BNZL) 2,441.00p 0.83%

FTSE 100 - Fallers

Kingfisher (KGF) 217.50p -4.10%
Tesco (TSCO) 219.00p -2.45%
Antofagasta (ANTO) 834.80p -2.34%
United Utilities Group (UU.) 812.40p -2.21%
Centrica (CNA) 134.17p -2.17%
Royal Bank of Scotland Group (RBS) 240.20p -2.16%
Berkeley Group Holdings (The) (BKG) 3,759.00p -2.13%
Sainsbury (J) (SBRY) 272.00p -2.12%
Taylor Wimpey (TW.) 163.70p -2.09%
Land Securities Group (LAND) 842.20p -1.89%

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