London’s FTSE 250 was down 0.2% at 23,468.78 in afternoon trade on Friday.
Synthomer was knocked lower by a downgrade to ‘hold’ from ‘buy’ at Berenberg. The bank said that while welcome, Synthomer’s pre-released first-half results probably mark the end of the organic upgrade cycle.
“For all management’s work in upgrading the portfolio and reducing leverage, the stock appears to be entering a precarious phase for industrial names: increasing amounts of capex directed towards a level at which there is declining return on capital employed (nitrile latex).
“Given two-year valuation is no longer low enough to make a compelling case for shares, we downgrade to hold with a new price target of 550p.”
Outsourcer Capita was the standout gainer on the index after saying it had returned to profit in the first half of the year, securing £2.6bn of new contract wins.
Cairn Energy rallied as it edged closer to receiving $1.7bn in compensation as part of a long-running tax dispute with the Indian government.
Morrisons was also on the rise after the supermarket chain agreed to an increased £6.7bn takeover offer from a consortium led by SoftBank-backed Fortress Group. Fortress has lifted its offer to 272p a share form 254p a share. Under the terms of the deal, Morrisons shareholders will receive 270p a share in cash plus a special dividend of 2p.
FTSE 250 – Risers
Capita (CPI) 39.06p 8.06%
Cairn Energy (CNE) 170.90p 7.95%
Watches of Switzerland Group (WOSG) 1,006.00p 3.18%
Chrysalis Investments Limited NPV (CHRY) 255.00p 2.82%
Harbour Energy (HBR) 348.90p 2.69%
Babcock International Group (BAB) 287.90p 2.49%
Morrison (Wm) Supermarkets (MRW) 278.50p 2.43%
Airtel Africa (AAF) 90.80p 2.25%
Auction Technology Group (ATG) 1,374.00p 2.07%
Aston Martin Lagonda Global Holdings (AML) 2,057.00p 1.83%
FTSE 250 – Fallers
Savills (SVS) 1,193.00p -4.80%
Frasers Group (FRAS) 593.00p -3.50%
SSP Group (SSPG) 244.90p -3.16%
Greencore Group (CDI) (GNC) 129.80p -2.55%
Mitchells & Butlers (MAB) 276.00p -2.54%
Restaurant Group (RTN) 117.20p -2.50%
Synthomer (SYNT) 525.00p -2.41%
IG Group Holdings (IGG) 891.50p -2.19%
Ashmore Group (ASHM) 386.80p -2.18%
Micro Focus International (MCRO) 409.20p -2.15%
