FTSE 100 movers: Miners shine but tobacco stocks slump

Fri 12 Oct 2018

LONDON (SHARECAST) - (Sharecast News) - London's FTSE 100 was up 0.1% to 7,014.66 in afternoon trade on Friday, in the green but off earlier highs and still set to end the week with losses.
Housebuilders Barratt Developments and Persimmon were higher after a big drop in the previous session on the back of the latest RICS survey.

Miners rallied, with Anglo American and Antofagasta up, while precious metals miner Fresnillo also shone.

GVC Holdings was on the rise as Berenberg trimmed its price target but said it remains the best pick in the gaming sector and the only stock where it sees fundamental upside on the established business.

Comparing GVC, Paddy Power and William Hill's US strategies, Berenberg said that GVC's joint venture with MGM Resorts in the US is likely to reach the top market position and become the most profitable over the long term thanks to a combination of strong brand, distribution, management capabilities and in-house technology.

The bank said it sees 50% upside even to its trimmed target price of 1,350p from 1,400p and 30% excluding the US opportunity.

On the downside, tobacco stocks were under pressure amid worries about tougher regulations, with Imperial Brands and British American Tobacco both lower. Traders cited a note from Morgan Stanley that mentioned a presentation from the US regulator that proposed reducing nicotine to 0.2mg per cigarette compared to 10-14mg for the average cigarette. The Food & Drug Administration also proposed an immediate cut rather than gradual decline and for the nicotine cap to go into effect in 2020.

However, this seemed to be referring to the FDA's "advanced notice of proposed rulemaking" consultation that was published in March, where the regulator called for information for consideration in developing new tobacco product standards.

Elsewhere, Rentokil Initial was in the red after the Competition and Markets Authority said it has launched an investigation into its completed acquisition of Mitie's pest control business.

FTSE 100 - Risers

Scottish Mortgage Inv Trust (SMT) 480.20p 5.68%
Barratt Developments (BDEV) 515.40p 5.66%
Fresnillo (FRES) 883.00p 5.24%
Anglo American (AAL) 1,702.00p 5.06%
Ocado Group (OCDO) 815.00p 4.57%
Evraz (EVR) 536.40p 4.24%
Antofagasta (ANTO) 797.20p 3.80%
GVC Holdings (GVC) 930.00p 3.33%
Persimmon (PSN) 2,250.00p 3.31%
Next (NXT) 5,418.00p 3.12%

FTSE 100 - Fallers

Imperial Brands (IMB) 2,581.00p -3.62%
British American Tobacco (BATS) 3,323.00p -2.41%
United Utilities Group (UU.) 693.60p -1.53%
Severn Trent (SVT) 1,825.00p -1.35%
Hargreaves Lansdown (HL.) 1,832.00p -1.00%
GlaxoSmithKline (GSK) 1,439.80p -0.81%
Rentokil Initial (RTO) 302.10p -0.79%
Smith (DS) (SMDS) 413.40p -0.72%
Standard Life Aberdeen (SLA) 276.90p -0.72%
National Grid (NG.) 793.40p -0.70%
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