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BAB - Babcock International News Story

217.8p -4.9  -2.2%

Last Trade - 18/09/20

Sector
Industrials
Size
Mid Cap
Market Cap £1.10bn
Enterprise Value £2.89bn
Revenue £4.45bn
Position in Universe 362nd / 1807

Britain's FTSE hits one-month low as miners, Babcock slide

Mon 27th March, 2017 5:11pm
* FTSE 100 down 0.6 pct 
    * Miners fall on weaker copper price 
    * Downgrade weighs on Lloyds 
    * Babcock down after contract termination 
    * Exova rises after takeover bids 
 
 (ADVISORY- Follow European and UK stock markets in real time on 
the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets) 
    By Kit Rees and Helen Reid 
    LONDON, March 27 (Reuters) - Britain's top share index hit a 
one-month low after the failure of U.S. President Donald Trump 
to push his healthcare reforms through Congress hit mining 
shares and Babcock  BAB.L  fell after exiting a contract. 
    The blue chip FTSE 100  .FTSE  index closed down 0.6 percent 
at 7,293.50 points, slightly underperforming the broader 
negative European market.  
    On Friday, Republican leaders pulled legislation to overhaul 
the U.S. healthcare system, a 2016 election campaign promise of 
Trump and his allies, putting into question Trump's ability to 
deliver on his other promises, such as tax reform. urn:newsml:reuters.com:*:nL2N1H10CS 
    The rally in global equity markets since Trump's election 
has been driven by a reflation trade, on the hope for increased 
infrastructure spending and tax cuts. 
    "The agenda is quite badly dented now - (Trump has) got a 
lot of consensus building to do," Ken Odeluga, market analyst at 
City Index, said. 
    "That's going to delay his ability to be really, really 
effective in terms of pushing through tax reform and 
pharmaceuticals reform and certainly will delay coming back for 
another bite of this healthcare reform," Odeluga added.     
    The FTSE's mainly foreign-earning stocks were also hit by a 
stronger pound which jumped almost 1 percent to an eight-week 
high against the dollar, gaining with other major currencies 
after the policy flop.  urn:newsml:reuters.com:*:nL5N1H41K7 
    British miners  .FTNMX1770  were among the biggest large cap 
fallers, with Glencore  GLEN.L , Anglo American  AAL.L  and 
Antofagasta  ANTO.L  all dropping between 3.9 to 4.7 percent as 
the price of copper slipped for a second day.  MET/L  
    Among the handful of risers, Astrazeneca  AZN.L  was up 0.9 
percent after it won approval for its lung cancer pill Tagrisso 
in China, a key market.  urn:newsml:reuters.com:*:nL5N1H40W6 
    Berenberg's downgrade on Lloyds  LLOY.L  to "sell" from 
"hold" sent the shares 1.6 percent lower, with analysts saying 
the bank is riskier than perceived and that risks 
from cyclical loan losses are highly skewed.  urn:newsml:reuters.com:*:nL3N1H42YV 
    Babcock International  BAB.L  also declined, down 4.3 
percent after the engineering outsourcer said it had reached a 
mutual agreement with the UK to terminate the Magnox nuclear 
decommissioning contract in 2019.  urn:newsml:reuters.com:*:nL3N1H42UE 
    Outside of the blue chips, shares in car dealer Inchcape 
 INCH.L  rose 4.7 percent after BNP Paribas upgraded its rating 
on the stock to "outperform" from "neutral".  urn:newsml:reuters.com:*:nL5N1H41AU 
    "The macro backdrop has improved and there would now look to 
be upside risk to the demand environment," said BNP analysts. 
"Currency has turned from a headwind to tailwind. Management 
have iterated a credible self-help programme to support earnings 
progression. M&A has moved from optionality to reality."    
    Exova  EXO.L  was a top small-cap gainer, posting its best 
ever daily gains, up 14.2 percent after the materials testing 
firm said it got proposals for cash offers from firms including 
Element Materials Technology, PAI Partners and Jacobs Holding 
AG.  urn:newsml:reuters.com:*:nL3N1H42PH 
 
 (Reporting by Kit Rees; Editing by Janet Lawrence/Ruth 
Pitchford) 
 ((kit.rees@thomsonreuters.com; +44 207 542 2784;)) 
  
((  
For related prices, Reuters users may click on - *  
 UK stock report      .L      
 FTSE index:          0#.FTS6   
 techMARK 100 index:  .FTT1X          FTSE futures:      0#FFI:   
 Gilt futures:        0#FLG:          Smallcap index:     .FTSC   
 FTSE 250 index:      .FTMC           FTSE 350 index:     .FTLC   
 Market digest:       .AD.L           Top 10 by vol:      .AV.L   
 Top price gainers:   .NG.L           Top % gainers:      .PG.L   
 Top price losers:    .NL.L           Top % losers:       .PL.L   
  
  
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 UK hot stocks:      [HOT and GB]     Wall Street:           .N  
 Gilts report:        GB/             Euro bond report  GVD/EUR  
 Pan European stock report:  .EU  
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 Sterling report:     GBP/            Dollar report:       USD/  
  
  
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 European Equities speed guide................  EUR/EQUITY   
 FTSE Eurotop 300 index...........................  .FTEU3   
 DJ STOXX index...................................  .STOXX   
 Top 10 STOXX sectors........................  .PGL.STOXXS   
 Top 10 EUROSTOXX sectors...................  .PGL.STOXXES   
 Top 10 Eurotop 300 sectors..................  .PGL.FTEU3S   
 Top 25 European pct gainers....................  .PG.PEUR   
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Keywords: BRITAIN STOCKS/
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