FTSE 100 movers: Diageo loses its fizz on results; Melrose rallies

(Sharecast News) - London's FTSE 100 was flat at 6,035.23 in afternoon trade on Tuesday.
GKN owner Melrose Industries was the standout gainer as it agreed improved financial covenants with its banks after the Covid-19 crisis caused revenue to slump at the industrial turnaround group.

BT Group was also on the rise as Berenberg upgraded its stance on the stock to 'buy' from 'hold' as it argued that sentiment towards the shares - which are now the worst in the telecoms sector year-to-date - should recover and that weakness represents a buying opportunity.

BP rallied even as the oil giant halved its quarterly dividend for the first time in a decade as it swung to a $6.7bn second quarter loss as the pandemic slammed demand for oil.

British Airways and Iberia parent IAG flew higher as the airline sector got a boost after easyJet said it expects to report a smaller loss for the fourth quarter of the year, and that it was expanding its flight schedule amid stronger-than-expected summer bookings, after taking a hit from the Covid crisis.

On the downside, Diageo fell after the drinks company took a £1.3bn charge for the reduced value of businesses hit by the pandemic as it reported a near-halving of first-half profit.

FTSE 100 - Risers

Melrose Industries (MRO) 94.96p 7.64%
BT Group (BT.A) 105.30p 7.43%
BP (BP.) 298.55p 6.23%
International Consolidated Airlines Group SA (CDI) (IAG) 171.65p 4.76%
Rolls-Royce Holdings (RR.) 241.30p 4.73%
BAE Systems (BA.) 511.40p 3.92%
Royal Dutch Shell 'B' (RDSB) 1,134.00p 3.02%
Royal Dutch Shell 'A' (RDSA) 1,174.80p 2.75%
ITV (ITV) 58.44p 2.74%
Morrison (Wm) Supermarkets (MRW) 192.35p 2.26%

FTSE 100 - Fallers

Diageo (DGE) 2,726.50p -5.36%
Avast (AVST) 578.50p -2.77%
Rentokil Initial (RTO) 536.00p -2.69%
Berkeley Group Holdings (The) (BKG) 4,446.00p -2.50%
Polymetal International (POLY) 1,892.50p -2.32%
Experian (EXPN) 2,709.00p -2.31%
London Stock Exchange Group (LSE) 8,494.00p -2.21%
AstraZeneca (AZN) 8,577.00p -2.17%
Intermediate Capital Group (ICP) 1,360.00p -2.16%
Hikma Pharmaceuticals (HIK) 2,170.00p -2.03%