DTY.L Share News (DTY)

LONDON (Alliance News) - The FTSE 100 ended the week higher for a third consecutive week Friday, amid a mixed performance in other equity indices, with individual stock movements on the day driven partly by bank recommendation changes.

The FTSE 100 closed up 0.3% on the day at 6,567.24, while the FTSE 250 closed down 0.3% at 15,464.53, and the AIM All-Share closed flat at 721.85. The FTSE 100 also rose 0.3% over the week as a whole.

In mainland Europe, the CAC 40 and the DAX 30 both closed 0.9% lower, while US indices were mixed at the London close, with the DJIA and the S&P 500 both up 0.1% and the Nasdaq Composite down 0.2%.

Growth in October US non-farm payrolls was weaker than expected, although there was an upward revision to the job gains of the previous two months and a dip in the jobless rate, which shrank to its lowest level since July 2008. The US government's survey of employers found payroll growth of 214,000 workers in October, while the September gain was revised up to 256,000. Separately, US unemployment fell to a six-year low of 5.8% in October, better than economists' forecasts for an unchanged rate of 5.9%.

"The jobs will help cement 3% real GDP growth forecasts for 2015, and if that is still a Fed/consensus view in January, the odds of a mid-2015 rate hike will be very high. That in turn, is the key to unlocking more dollar strength," said Societe Generale strategist Kit Juckes.

The dollar had sharply appreciated against the pound and euro immediately after the data was released, but has since given up those gains. At the London close, the pound traded the dollar at USD1.5845, and the euro/dollar was at USD1.2426.

Miners were the best performers on the blue-chip and mid-cap indices. The FTSE 350 mining sector index was the best performing sector index, gaining 2.4%, while Fresnillo, up 4.9% and BHP Billiton, up 3.0%, were the two top gainers in the FTSE 100. One analyst said that the rally seems like a "dead cat bounce", with no overriding reason for it.

US investment bank Goldman Sachs changed its ratings on a string of London listed stocks. Intertek Group, up 2.6% and Experian, up 2.2%, were amongst the best-performing blue-chip gainers after getting upgraded.

Goldman analysts upgraded information services company Experian to Neutral from Sell, with a price target hike to 1,078.00 pence from 985.00p. The bank upgraded quality-testing company Intertek to Buy from Neutral, with a price target increase to 3,340.00p from 3,240p. Intertek closed at 2,757.00p, while Experian ended at 1,021.00.

Admiral Group, was the worst-performing FTSE 100 stock, ending down 3.5%, after it reported a 3% fall in third-quarter revenue, hit by a drop in its UK car insurance business. Its expectations for that main profit driver remain on track for the current financial year, thanks to "positive claims development" on its back years, it said, suggesting Admiral is optimistic on releasing reserves no longer required to cover claims losses.

However, Admiral Chief Executive Henry Engelhardt reiterated previous warnings that future earnings will be hit by the decline in car insurance premiums across the market in recent years, coupled with a return to higher claims inflation.

In the FTSE 250, Rentokil Initial ended as the worst performer, down 5.0%. The company, which provides services from pest control to facilities management, said the strength of sterling was having a big impact on its reported results, with third quarter pretax profit pegged back by the effect of currency translation. Pretax profit in the three months to the end of September rose 16.7% to GBP48.8 million, but the company said it would have risen 27% if exchange rates were the same as a year ago.

The economic calendar on Monday begins with Chinese Consumer and Producer price figures for October at 0130 GMT. The rest of the day is fairly light, with the eurozone Sentix investor confidence report for November due at 0930 GMT, and Japanese trade balances data after the London close at 2350 GMT.

There will be interim management statements from FTSE 250-listed companies Dignity, Redrow, Just Retirement Group and Hiscox. Engineering data and design IT system provider AVEVA Group will be reporting half-year results.

By Neil Thakrar; neilthakrar@alliancenews.com

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