RBS leads fall of banks as FTSE record run ends
THE record-breaking run of the
FTSE 100 finally came to an end as the stock market eased off 0.15pc, or 10.68 points, to 7327.13.
Talk of a hard Brexit drove the pound lower, which sent the bluechip index up in early trading, but financials weighed heavy on the FTSE after Goldman Sachs cut its rating on RBS (down 2.8pc, or 6.2p, to 214.9p).
Donald Trump’s US election win hit investment firm Ashmore in the final quarter of the year. The group specialises in emerging markets, which fell sharply out of favour when Trump became Presidentelect due to fears of protectionist policies and the strong dollar hurting exports. Ashmore said that its assets dropped by around £2bn over the quarter as investment performance lagged and savers pulled £580m out of funds.
Assets under management slipped 4pc to £43.2bn. But chief executive Mark Coombs remained upbeat, saying the effects of the election had been short-lived and investments increased in December.
Numis, which has a ‘hold’ rating on the stock, said: ‘The company continues to put a brave face on things and retains its more positive outlook. We are not sure that most [investors] will be convinced of this until we begin to see more consistent evidence of a return to positive inflows.’
But the upbeat outlook saw shares surge 6.6pc, or 18.6p, to 302.1p.
Brick maker Ibstock tumbled after disappointing results in the UK. Clay and concrete products in the UK, which make up around 80pc of the group’s revenue, were up just 2pc in the year.
But Ibstock said increased housebuilder activity meant the second half of the year had been stronger. Sales in the US were up 18pc and the firm said the construction of a new clay brick factory in Leicestershire, set to complete in the second half of this year, will increase capacity by 13pc. Overall revenue for the year was up 5pc and the firm said earnings had been in line with expectation.
Ibstock saw its share price tumble in June after concerns about the property sector post Brexit took hold. Shares are still down 10pc from their pre-referendum level. Yesterday they slipped 3.2pc, or 5.9p, to 180.3p.
Sales growth of 80pc year-on-year wasn’t enough to please Innova
derma investors. Revenues at the firm, which makes a range of hair loss, self-tanning and anti-ageing treatments, grew to £3m in the second half the year. Innovaderma said sales growth had been driven by its premium self-tan brand Skinny Tan, which launched in Superdrug last February. Innovaderma will aim to build customer loyalty of the brand this year and said its launch in the US market in October should help drive earnings growth. Shares plunged 31.4pc, or 77.5p, to 169p. Online advertising outfit Rhythm
One rocketed as third-quarter results met its upgraded expectations. The firm hit record highs for revenue and profitability, and also moved into five new EU markets. N+1 Singer said the results showed good momentum and suggest that the firm is on track to achieve its increased revenue and earnings targets for the full year.
The broker, which has a ‘buy’ rating on the stock, said an increase in capacity at the business boded well for potential revenue.
Numis said the results and the acquisition of Perk – set to complete this month – showed the firm was ‘back on the front foot’. Shares soared 9pc, or 3.5p, to 42.5p. Temporary power supplier
Aggreko heated up as it extended its contracts with the government of Argentina. Fixed-site contacts will now run until the end of the year while standby contracts have been extended until February or March. Aggreko said the pricing of the deals was in line with expectation. Shares advanced yesterday by 2.5pc, or 24.5p, to 1012p. Premier Technical Services
Group was up after acquiring Nimbus, a firm which designs, installs and maintains lightning protection and earthing systems. Shares gained 2.4pc, or 2p, to 86p.