FTSE 100 movers: Bunzl jumps after results; Kingfisher, AB Foods hit by downgrade

(Sharecast News) - London's FTSE 100 was down 0.6% at 9,265.78 in afternoon trade on Tuesday. Bunzl jumped to the top of the index even as it reported a drop in first-half profit.

Russ Mould, investment director at AJ Bell, said: "Distribution and outsourcing group Bunzl is supposed to be boring and reliable, providing businesses with everyday items which are fundamental to their day-to-day operations, but it created the wrong sort of excitement in April as it endured its worst one-day sell-off in a decade.

"This followed a major profit warning, pegged on a challenging economic backdrop and cost challenges in North America, and the accompanying suspension of its buyback programme.

"Investors have now reacted with relief to a first-half results announcement which is reassuringly prosaic.

"Profits were lower as guided and the company has also resumed its buyback, suggesting the ship has been steadied thanks to divisional leadership changes, cost savings and an increased focus on higher margin own-brand products."

Precious metals miner Fresnillo gained as gold prices hit a two-week high after US President Trump said he had fired Federal Reserve governor Lisa Cook based on allegations that she made false statements on mortgage agreements.

Kingfisher and Associated British Foods both slumped after downgrades by Deutsche Bank, which said it was taking a more cautious view on the UK consumer.

The bank said: "The end of 2024 and early 2025 are likely to have been the sweet spot with real wage growth set to slow and fear of unemployment set to build from here. Our Household Cash Flow model shows discretionary spending lagging spending power and, unless consumers reduce savings, there will be a 4ppt slowdown in discretionary spend to +3% in 2H from +7% in 1H.

"Retail sales have been resilient into Q2 helped by warm weather although there is some variance by category."

DB said consumer confidence metrics remain subdued and its new "Fear Index" suggests things may be getting worse.

DB cut Primark owner AB Foods to 'sell' from 'hold', while Kingfisher was downgraded to 'hold' from 'buy'.

FTSE 100 - Risers

Bunzl (BNZL) 2,524.00p 5.87% BT Group (BT.A) 216.10p 1.41% Tesco (TSCO) 432.30p 1.41% Babcock International Group (BAB) 1,013.00p 1.30% Croda International (CRDA) 2,579.00p 0.98% Ashtead Group (AHT) 5,514.00p 0.95% JD Sports Fashion (JD.) 94.10p 0.90% Shell (SHEL) 2,715.50p 0.87% Sainsbury (J) (SBRY) 306.80p 0.85% Fresnillo (FRES) 1,703.00p 0.83%

FTSE 100 - Fallers

Kingfisher (KGF) 271.70p -3.38% Associated British Foods (ABF) 2,249.00p -2.81% Convatec Group (CTEC) 236.20p -2.72% Compass Group (CPG) 2,546.00p -2.71% British American Tobacco (BATS) 4,198.00p -2.71% Schroders (SDR) 387.40p -2.32% DCC (CDI) (DCC) 4,732.00p -2.23% Whitbread (WTB) 3,133.00p -2.19% Standard Chartered (STAN) 1,386.50p -2.15% Prudential (PRU) 979.00p -1.98%