FTSE 100 movers: Pearson boosted by Citi note; B&M in the red

(Sharecast News) - London's FTSE 100 was up 0.5% at 8,271.30 in afternoon trade on Wednesday. St James's Place was a high riser ahead of its expected relegation from the top-flight index.

Pearson gained as Citi opened a 90-day "positive catalyst watch" on shares of the education publisher as it pointed to an attractive risk/reward.

"While we think new CEO Omar Abbosh's business and strategic update in July will formally signal a pivot from value to growth for Pearson, lengthening its duration as an investment, we don't see major earnings risk and note leverage-neutral valuation is toward decade lows," the bank said.

"Accordingly, we think overall risk/reward is attractive (base case 1170p but upside to 1550p on best case)."

B&M European Value Retail slid even as it said annual operating profits and sales grew in the double digits, helped by the opening of 78 gross new stores across the group, with earnings at the top end of guidance.

British Gas owner Centrica fell despite saying that current year trading was in line with expectations against the backdrop of a more "normalised" environment.

Mondi was weaker after a downgrade to 'equalweight' at Morgan Stanley.

FTSE 100 - Risers

St James's Place (STJ) 518.50p 3.29% Smith & Nephew (SN.) 1,025.50p 3.04% GSK (GSK) 1,658.50p 2.69% Pearson (PSON) 964.20p 2.40% Entain (ENT) 728.20p 1.99% Rentokil Initial (RTO) 431.80p 1.84% Rightmove (RMV) 556.00p 1.72% Rolls-Royce Holdings (RR.) 455.60p 1.70% Imperial Brands (IMB) 1,980.00p 1.38% Diageo (DGE) 2,674.50p 1.33%

FTSE 100 - Fallers

B&M European Value Retail S.A. (DI) (BME) 509.40p -6.77% Centrica (CNA) 136.85p -3.80% JD Sports Fashion (JD.) 128.65p -2.80% Mondi (MNDI) 1,521.00p -1.62% Anglo American (AAL) 2,370.50p -1.37% Sainsbury (J) (SBRY) 275.20p -1.22% Auto Trader Group (AUTO) 817.00p -1.07% SEGRO (SGRO) 921.00p -1.01% Lloyds Banking Group (LLOY) 55.08p -1.01% International Consolidated Airlines Group SA (CDI) (IAG) 173.60p -0.91%