(WebFG News) - London's FTSE 250 was up 0.4% to 20,293.10 in afternoon trade on Monday as geopolitical tensions eased, with Capita the standout gainer.
Outsourcer Capita surged as it confirmed plans for a £701m rights issue to enable it to carry out a new strategy after a "significant deterioration" in new business wins and business volumes that will continue to weigh on profits in 2018.
Flow control manufacturer Rotork rallied after it reported a jump in first-quarter revenue and said it now expects full-year revenue to show mid to high single-digit growth over the previous year. In a trading update for the period from 1 January to 1 April 2018, Rotork said revenue rose 10.2%, with order intake up 20.9%, or 27% at organic constant currency, thanks to more favourable market trends and the receipt of several significant orders.
Engineer Weir was a high riser as RBC Capital Markets upped its price target on the stock to 2,600p from 2,400p and reiterated the 'outperform' rating.
"Both of Weir's main end markets continue to recover and the shares
are at a discount to the sector - an attractive combination," it said, adding that it likes the company's $1.3bn acquisition of US rival Esco for its accretion, timing and aftermarket focus.
On the downside, shipping services provider Clarkson sank after warning that both first-half and full-year profits are now expected to be "materially below" the previous year following a number of headwinds in the first quarter.
Ferrexpo was trading lower even as Investec upgraded the stock to 'hold' from 'sell', as Credit Suisse cut its price target to 230p from 333.66p as a meeting with Vale revealed that Brazil's Samarco was likely to come back on line next year, albeit in a phased manner.
"Previously our valuation was geared towards 2018 earnings as we had confidence the company would lock in the premium for the year and we were unsure if/when Samarco would return. There is still uncertainty over Samarco but, now with more confidence than we had before, we give more credit to our 2019 earnings that incorporate a lower premium," CS said.
FTSE 250 - Risers
Capita (CPI) 178.25p 11.55%
Rotork (ROR) 328.22p 9.81%
Lancashire Holdings Limited (LRE) 598.50p 3.91%
Hikma Pharmaceuticals (HIK) 1,254.00p 3.81%
Petrofac Ltd. (PFC) 618.82p 3.21%
Weir Group (WEIR) 2,264.00p 2.86%
Bakkavor Group (BAKK) 187.00p 2.75%
Essentra (ESNT) 447.20p 2.66%
Virgin Money Holdings (UK) (VM.) 285.50p 2.59%
Vesuvius (VSVS) 593.50p 2.33%
FTSE 250 - Fallers
Clarkson (CKN) 2,525.00p -18.68%
Woodford Patient Capital Trust (WPCT) 76.11p -10.46%
Ferrexpo (FXPO) 227.90p -3.80%
Capital & Counties Properties (CAPC) 276.30p -3.56%
Vedanta Resources (VED) 723.00p -2.56%
Ted Baker (TED) 2,597.70p -2.27%
BCA Marketplace (BCA) 182.60p -2.25%
Melrose Industries (MRO) 224.10p -2.23%
Fisher (James) & Sons (FSJ) 1,708.00p -1.95%
Hochschild Mining (HOC) 216.10p -1.77%