Investors shun Vodafone now it won’t pay dividends
Investors hung up on Vodafone yesterday after the firm went ex-dividend.
the telecoms firm reached the cut-off point in the year when new investors who buy shares no longer qualify for a dividend pay-out. shares dialled down 4.9pc, or 11.4p to 219.7p.
Miners dominated the rest of the fallers in the FTSE 100, which finished the day 1.1pc, or 69.63 points lower at 6231.89. Antofagasta (down 6.3pc, or 28.3p to 423.4p) took the biggest tumble as Canaccord cut the stock to a hold and shaved 75p off its target price to 475p. Glencore lost 5.3pc, or 7.8p to 138p after reports it is seeking a buyer for its gold mine in Kazakhstan.
the miner is said to want around £1.4bn for the asset. It has also sold a 10pc stake in its agricultural products business to British Columbia Investment Management for around £431m.
BHP Billiton plunged 4.5pc, or 40.9p to 860.1p and Anglo American dropped 4.5pc, or 31.5p to 666p.
Petrofac stumbled 5.1pc, or 40p to 743p after Citigroup cut its target price for the stock. sceptical investors may be taking profits after this week’s gains, doubtful that the oil price can rally further after reaching an eight-month high on Wednesday.
Furniture store group DFS rose 2.4pc, or 7.1p to 300p yesterday. Last week the retailer announced it would be undertaking a share buy-back programme. since last thursday it has purchased 140,000 of its own shares at an average price of 296.4p. DFs says the shares will be held to be used in employee share-based award obligations as and when required.
Wincanton travelled up 6.8pc, or 12p to 189p. the logistics group said earnings had grown while debt had fallen in its preliminary results. the firm said underlying profit increased 5.4pc while the disposal of its records management business had generated a gain of £32.4m which will be used to repay debt and contribute to the group’s pension scheme.
Wincanton is to reintroduce dividends, with a final pay out of 5.5p a share. the firm said it expects to continue its progress in the coming year.
Essentra tanked after a profit warning. the plastic product provider said it was unlikely to achieve the trading levels it had previously anticipated. Conditions in the filter products part of the business have deteriorated, it said, and some large projects are being deferred or not going ahead.
While essentra said it should still achieve its forecast revenue of £1.1bn, it warned investors that profit was likely to be £155m-£165m rather than £171.5m. the biggest faller for the day, its shares plummeted 27.7pc, or 230p to 600p.
At the other end of the market was British Polythene Industries, which makes and recycles polythene films. Its shares rocketed 35.2pc, or 255p to 970p after engineering firm rPC revealed it was to acquire the business for £262m.
Auto Trader topped the Ftse 350 risers for the day, driving up 5.4pc, or 21.6p to 424p.
Among the smaller companies, car finance firm S&U was speeding up. the company, which provides lending for car loans and other specialist finance, now has more than 80,000 customers in the UK and car finance loans are at a high, up 18pc to £17bn. s&U shares accelerated 2.9pc, or 70p to 2500p.
Mereo BioPharma had its first day of trading on Aim yesterday. the firm, which develops and acquires medicines primarily for rare and specialist diseases, listed at 221p a share valuing the business at £142m. Mereo acquired its three initial products from pharma giant novartis, two of which are in Phase 2 of clinical studies. Its shares climbed 24pc on its first day, finishing 53.5p higher at 274.5p.
Time Out should join the market next week. After conditionally raising £90m, the media group – best known for its listing magazines in various cities – is set to list at a share price of 150p, valuing the firm at £195m. It is set to start trading on Aim on June 14.