WINNERS & LOSERS SUMMARY: Provident Up As It Starts Road To Recovery

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the ...

Alliance News 13 October, 2017 | 10:33AM
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LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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Rio Tinto, up 1.3%, BHP Billiton, up 0.9%, Glencore, up 0.8%, Anglo American, up 0.5%. The miners were higher following the release of Chinese trade data overnight. Chinese imports surged 18.7% in September from a year ago, faster than the expected growth of 15.0%, exceeded expectations on improving domestic demand. "The country is an enormous importer of minerals so stocks like Rio Tinto, Anglo American and Glencore are higher on the day," said CMC Markets analyst David Madden. In addition, Deutsche Bank issued a research note raising its price targets on the mining stocks.
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FTSE 100 - LOSERS
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GKN, down 7.0%. The engineer's shares were lower after warning its results will be hit by GBP40.0 million worth of claims made against the company, and now expects its profit for 2017 will be "slightly above" that of 2016. GKN reported a pretax profit of GBP292.0 million in 2016. When it released its interim results, GKN has said 2017 was expected to be "another year of growth". The company said it had been made aware of two probable claims. One relates to GKN Aerospace and the other GKN Driveline. Both claims are commercially sensitive with no additional information disclosable at this time, it said. "When you take into account the company had a pretax profit in excess of GBP1.10 billion last year, these one-off costs are relatively small, but whenever investors hear profit warning, they run for the hills," CMC's Madden noted.
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FTSE 250 - WINNERS
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Provident Financial, up 17%. The troubled subprime lender said it developed a recovery plan for its struggling home credit business after warning earlier this year the division would sink to a loss in 2017, but confirmed no dividend will be paid after withdrawing the interim payout. Provident reduced its pretax profit guidance for its Consumer Credit division earlier this year, to a pre-exceptional loss of between GBP80 million to GBP120 million in 2017, from previous forecasts of a GBP60 million profit - as a result of the unsuccessful transition of its home credit sales force from part-time self-employed agents to full time employees. Provident said it still expects the division to report a loss within that range, but said a recovery plan has been developed "under new leadership" to "to re-establish relationships with customers, stabilise the operation of the business and improve collections performance".

Ashmore Group, up 7.5%. The emerging markets-focused asset manager said its assets under management jumped 11% in the first quarter of its financial year as appetite for emerging market investment grows. For the three months ended September 30, assets under management grew to USD65.0 billion from USD58.7 billion on June 30. This represented a total increase of USD6.3 billion. USD4.3 million of this was derived by net inflows and USD2.3 billion from positive investment performance, the company said. This increased "client engagement" over recent months, the company added, was a result of "strong" gross subscriptions in particular through large institutional mandates in external debt and blended debt which grew 10% and 14% over the period.

Man Group, up 3.3%. The investment manager said it saw positive fund growth and inflows in the third quarter of 2017, as it stated its intent to absorb research costs for the majority of its business. Also, the group will repurchase up to USD100.0 million in shares, and will continue to review potential acquisition opportunities. However, it did not clarify exactly when the buyback will occur. Man Group reported total funds under management at the end of the three months to September 30 of USD103.5 billion, up from USD95.9 billion at the end of June. That rise came as a result of net inflows in the quarter of USD2.8 billion and positive valuation movements of its investments of USD3.3 billion.
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FTSE 250 - LOSERS
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TalkTalk Telecom Group, down 6.0%. The home phone and broadband provider was cut to Equal Weight from Overweight by Barclays.

Renewi, down 3.1%. Credit Suisse downgraded the waste disposal company to Neutral from Outperform.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
TalkTalk Telecom Group PLC 203.60 GBX -0.39 -
Renewi PLC 104.30 GBX 5.83 -
Glencore PLC 378.80 GBX 0.16
GKN PLC 313.60 GBX 3.36
Anglo American PLC 1,435.50 GBX 0.24
Rio Tinto PLC 3,590.50 GBX -0.26
BHP Billiton PLC 1,379.00 GBX -0.33
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