FTSE 100 movers: Morrisons gains after update; Rentokil hit by downgrade

(Sharecast News) - London's FTSE 100 was flat at 7,576.48 in afternoon trade on Tuesday as investors shrugged off Middle East tensions.
Supermarket group Morrisons was in the green after it reported a fall in like-for-like sales for the first 22 weeks of the second half in challenging conditions but said full-year results would remain in the range of forecasts. Like-for-like sales in the 22 weeks to January 5, group like-for-like sales excluding fuel were down 1.7%, with retail down 1.7% and wholesale of flat.

Group like-for-like sales including fuel fell 2.8%. Total sales were 1.8% lower excluding fuel and down 2.9% including fuel.

NMC Health was in the red a day after the UAE-based private healthcare operator said an independent review would initially focus on confirmation of its cash balances as at 15 December.

Rentokil Initial was weaker after Credit Suisse downgraded the stock to 'neutral' from 'outperform', cutting the price target to 450p from 460p.

The bank pointed to stable growth but FX headwinds, slower margin accretion and diminishing US pest opportunities. It cut its earnings per share estimate for 2019 by 1% and for 2020-21 by 7-9% to reflect the impact of FX as sterling has strengthened and a more cautious view on the company reaching its 18% margin target for North America by 2021.

"Given the combination of falling forecasts, slowing group margin growth, declining US M&A opportunity set and a PE of 29.2x we downgrade to neutral," CS said.

Standard Life Aberdeen was also knocked lower by a broker downgrade as JPMorgan cut its rating to 'neutral' from 'overweight', while SSE was hit by a downgrade to 'neutral' from 'buy' at Goldman Sachs.

Rolls-Royce was trading lower even after saying that its car sales last year surged 25% to a record 5,152, driven by worldwide demand for its Cullinan SUV. The company said the Cullinan, which was unveiled in 2018, had become the fastest-selling new Rolls-Royce model in history.



FTSE 100 - Risers

Kingfisher (KGF) 225.90p 2.87%
Imperial Brands (IMB) 1,962.60p 2.70%
Ocado Group (OCDO) 1,303.50p 2.52%
Associated British Foods (ABF) 2,666.00p 1.95%
Morrison (Wm) Supermarkets (MRW) 196.05p 1.87%
Sainsbury (J) (SBRY) 230.80p 1.85%
Barratt Developments (BDEV) 761.20p 1.79%
easyJet (EZJ) 1,376.00p 1.70%
Antofagasta (ANTO) 924.20p 1.69%
British American Tobacco (BATS) 3,397.50p 1.42%

FTSE 100 - Fallers

NMC Health (NMC) 1,559.50p -6.70%
Rentokil Initial (RTO) 438.80p -3.03%
Standard Life Aberdeen (SLA) 316.10p -2.83%
Intertek Group (ITRK) 5,680.00p -2.24%
SSE (SSE) 1,417.00p -1.73%
Centrica (CNA) 88.22p -1.52%
Rolls-Royce Holdings (RR.) 668.00p -1.33%
Hikma Pharmaceuticals (HIK) 1,887.50p -1.28%
Burberry Group (BRBY) 2,162.00p -1.19%
Polymetal International (POLY) 1,208.00p -1.11%