Source: Sharecast
BP and Shell were among the top gainers as oil prices crept up after the memorandum of understanding between the US and Iran expired on Monday.
Whitbread was a high riser as Bernstein upgraded the Premier Inn owner to ‘market perform’ from ‘underperform’ and lifted the price target to 2,400p from 2,100p as it said the company’s new five-year plan was "realistic" and it’s time to adopt a "more constructive stance".
Bernstein said it has stress-tested the new five-year plan and concluded it is realistic. "The Accelerating Growth Plan (i.e. restaurant exit) now includes all branded restaurants, and we expect it to deliver low double digit percentage return on investment despite the extension to sites less suited for rooms conversion," it said.
"The updated German network expansion limits growth to 18,000 rooms (versus the prior 20,000) - still ambitious but now more achievable. Under conservative cost assumptions for the UK network expansion, we think it can achieve an ROI in the mid-high teens."
Bernstein also said trading remains healthy, with year-on-year growth despite lapping comps last summer. "We would also view the likelihood of business rates relief or VAT reduction at October's Budget as higher than that of any new sector-specific tax," it said.
"That said, some downside risks persist: fuel inflation could re-emerge next year as hedges roll off, while the introduction of the UK's first major tourism levy in Edinburgh (5%) suggests hotels may initially need to absorb some of the cost rather than pass it through to guests."
FTSE 100 - Risers
BP (BP.) 532.50p 2.54%
BT Group (BT.A) 203.20p 2.52%
3i Group (III) 2,848.00p 2.19%
Relx plc (REL) 2,519.00p 2.02%
Experian (EXPN) 2,856.00p 1.96%
Marks & Spencer Group (MKS) 389.10p 1.94%
IG Group Holdings (IGG) 1,400.00p 1.89%
Whitbread (WTB) 2,481.00p 1.81%
Shell (SHEL) 3,387.50p 1.79%
The Sage Group (SGE) 1,064.50p 1.62%
FTSE 100 - Fallers
Halma (HLMA) 3,604.00p -2.38%
Land Securities Group (LAND) 692.00p -1.84%
Babcock International Group (BAB) 1,159.50p -1.53%
Tesco (TSCO) 441.30p -1.43%
Pearson (PSON) 1,177.00p -1.42%
Barratt Redrow (BTRW) 317.80p -1.40%
Diploma (DPLM) 7,255.00p -1.36%
Lion Finance Group (BGEO) 13,140.00p -1.35%
Croda International (CRDA) 3,113.00p -1.33%
Fresnillo (FRES) 2,894.00p -1.30%