(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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Hargreaves Lansdown, up 6.0%. The fund supermarket said it has performed strongly in the first four months of 2020 despite the "exceptionally volatile and challenging period". In the four months to April 30, Hargreaves recorded GBP4.0 billion of net new business, with 94,000 new clients joining the firm. In the same period last year, Hargreaves recorded GBP2.9 billion in net new business. Net new business growth was driven by the "usual factors", Hargreaves said, of existing clients using tax allowances during the ISA season, ongoing wealth consolidation onto its platform from existing clients and flows into its cash management service, Active Savings. The growth was further accelerated following the significant market falls in early March, the fund supermarket added, as existing clients added money to accounts and new clients sought to take advantage of the opportunity to invest at lower prices. Hargreaves said its current intention to is to keep its dividend for financial 2020, due to its "strong" trading results.
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3i Group, up 4.5%. The private equity investor reported a decline in net asset value per share, but maintained its dividend. 3i reported a diluted NAV per share of 804 pence as at March 31, the end of its financial year. This represents a 1.3% drop from year earlier's 815p. As a result, total return for the year was GP253 million, down from GBP1.25 billion the year before, while return on opening shareholders' funds was 3%, down from 18%. Its portfolio value increased 7.3% to GBP8.10 billion on March 31 from GP7.55 billion the prior year, gross debt was flat at GBP575 million, and net cash fell 45% to GBP270 million from GBP495 million. Liquidity was at GP1.25 billion, having been GBP1.42 billion the year before. 3i maintained its dividend per share at 35 pence, with a 17.5p per share final dividend scheduled to be paid in July subject to shareholder approval.
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FTSE 100 - LOSERS
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Legal & General, down 5.0%, Aviva, down 3.0%, RSA Insurance, down 2.6%. The insurers were lower after Lloyds Of London said that the Covid-19 pandemic will be the mostly costly event in history. To date, Lloyd's said it will have to pay out USD3.0 billion to USD4.3 billion to customers for the fallout of the virus. Lloyd's noted this could rise if the national lockdowns continue. Lloyd's believes the 2020 underwriting loss for the nonlife insurance industry as a whole will top USD107 billion - which the market said matches some of the biggest major claims years for the industry. Lloyd's cited 2005 and 2017, both years ravaged by natural catastrophes. Rachel Winter, associate investment director at Killik & Co, said: "The insurance sector is particularly weak this morning after a report from insurance marketplace Lloyds of London. It estimated the cost of the coronavirus to the insurance industry as a whole could be more than USD200 billion. That's more than 9/11 and more than Hurricane Katrina in 2005. Insurers will sustain losses and it's likely that insurance premiums will have to rise."
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Prudential, down 4.5%. The insurer said first-quarter sales in Asia were weighed down by the effects of Covid-19 on mainland China and Hong Kong. Asia APE sales excluding Hong Kong and China were up 1% for the three months ended March 31 compared to a year before, while total Asia APE sales fell 24% to USD986 million. APE sales are "a measure of new business activity that comprises the aggregate of annualised regular premiums and one-tenth of single premiums on new business written during the year for all insurance products, including premiums for contracts designated as investment contracts under IFRS 4," Prudential explained.
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Royal Dutch Shell 'B, down 3.6%, GlaxoSmithKline, down 3.4%. The stocks went ex-dividend meaning new buyers no longer qualify for the latest payout.
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FTSE 250 - WINNERS
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Grainger, up 1.0%. The residential landlord increased its payout for the first half of its current financial year amid higher rental income. Grainger reported pretax profit of GBP49.6 million for the six months to the end of March, down 8.7% from GBP54.3 million, as revenue declined 19% to GBP86.9 million from GBP107.0 million. More positively, Grainger reported net rental income in the first half up 27% to GBP37.0 million compared to GBP29.1 million the year before. The company maintained its dividend policy, with interim dividend per share increased by 6% year-on-year to 1.83 pence from 1.73p, driven by rental growth and investment activity. Looking ahead, Grainger said rental performance proving resilient in early second-half trading. For the month of April, the company said it has seen similar levels of rent collection and rental growth albeit with a higher proportion of renewals compared to new lets in its portfolio, as customers choose to cancel or postpone their home moves.
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FTSE 250 - LOSERS
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Countryside Properties, down 16%. The housebuilder reported a sharp drop in interim profit and has seen a significant fall in reservations amid the coronavirus pandemic. In the six months to March 31, Countryside's pretax profit slumped 38% to GBP43.7 million from GBP70.3 million the year before. Operating profit is down 32% year on year to GBP41.0 million from GBP60.2 million. Revenue slipped 5.1% to GBP481.2 million from GBP507.0 million. Completions in the first half fell 4% to 2,271 from 2,362. Countryside estimates around 184 completions, including 79 private sales, were lost due to the Covid-19 lockdowns. The firm also saw lowered construction activity, which resulted in the cancellation of five land sales. As a result, the housebuilder said it lost revenue of about GBP116 million, with an operating profit hit of GBP29 million. Countryside suspended its dividend payments.
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Stagecoach, down 15%. Citigroup double downgraded the transport operator to Sell from Buy.
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Greencore Group, down 11%. Jefferies cut the sandwich maker to Hold from Buy.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Prudential (PRU)
Aviva (AV.)
Hargreaves Lansdown (HL.)
Grainger plc (GRI)
3i Group (III)
