Market Report: Citi puts Hargreaves at bottom of league

 

Owning football and rugby clubs is an expensive hobby. Stephen Lansdown has a majority shareholding in Bristol City football club and is also the backer of Bristol rugby club. In 2009 he sold some of his shares in the stockbroker he founded with Peter Hargreaves to help fund a new football stadium.

The plans for the stadium at Ashton Vale have had a few hiccups and now so has Hargreaves Lansdown's share price after Citigroup analysts yesterday slapped a sell rating on the financial advisory group and cut its share price target from 630p to 620p.

Citi's scribes think the forthcoming retail distribution review will result in a "significant structural change" in the market. "HL will need to announce and implement a new client-charging structure by end-2013. We see this as potentially disruptive to operations," Citi's experts said.

Hargreaves Lansdown, which listed in 2007, has more than 400,000 "Do-It-Yourself" customers who invest through its platform.

The sell rating – with Citi analysts thinking the shares over overvalued for the "risks it faces" – helped Hargreaves Lansdown get relegated to the bottom of the benchmark index and its shares lost 31.5p to 727.5p. Mr Lansdown is due to step down from the company's board next month and Citi also thinks there is a "potential overhang risk from his 20 per cent stake during 2013".

Hargreaves Lansdown was joined by fallers from the insurance sector, hit by news that Hurricane Sandy will begin its descent on the east coast of the US.

Sandy has forced Wall Street to close, and it will be shut today too. The shutdown due to weather, is the first time since 1985, when Hurricane Gloria was the culprit.

A raft of insurance groups' shares sank as investors speculated how the disaster will affect claims. Losers included mid-cap index general insurers Catlin, down 8.1p to 465p, Hiscox, 7.7p lighter at 476.5p, and Amlin, which lost 5.9p to 368.3p.

The US closure meant a very quiet London; trade is depressed on the back of the shutdown and US earnings results have been pushed back.

But the extremely low volumes and lack of liquidity only sent the FTSE 100 down 11.61 points to 5795.1.

The car insurers also had the brakes slammed on their share prices as part of the wider insurance sector woes.

But the entire car insurance sector could be driving into a period of turmoil; the Competition Commission is crawling over the industry to stamp out any unfair practices in what could be a blow to the largest London listing of 2012, Direct Line last month.

Direct Line's shares, down 2.25p to 190.25p, have soared above their float price of 175p. But it will release its third-quarter update on Friday and yesterday announced job cuts. Admiral steered southward, losing 23p to 1,094p.

On AIM, outsourcing specialist Quindell Portfolio has been very busy trying to gain market share in the £9.4bn sector. It has been making purchases left, right and centre in outsourcing, across software, consultancy and technology, as well as the bumper-to-bumper car insurance sector. Its buying spree has seen it gobble up Pinto Potts Solicitors, software firm Metaskill, Intelligent Claims Management, IT Freedom and Ingenie. According to one motor mouth in the City its motor claims outsourcer, Ai Claims, a firm that Quindell bought during the summer, has had a spot of bad news. Ai Claims' major line of work is with insurer RSA. RSA has just decided to move some of this business to fast-growing US car hire specialist Enterprise.

The gossip thinks this could hit the shares once the market digests the news. But Quindell insists Ai is only a small proportion of the group's profit and that Ai still works with RSA on a number of other accounts. Quindell released a trading update and gained 0.62p to 13.8p.

Software expert Sage Group led the blue-chip risers, up 5.6p to 309.8p. The share price rise was accompanied by an upgrade from analysts at Citigroup, who raised their recommendation to buy.

BAE Systems and Babcock International were boosted by contract wins from the Ministry of Defence for nuclear submarines. BAe, up 0.3p to 311.2p, won a second contract from the Government to design Britain's next generation of nuclear subs while engineer Babcock, rising 2.5p to 955.5p, was awarded a submarine design contract worth £38m.

FTSE 100 Risers

Arm Holdings 665.5p (up 9p, 1.37 per cent) Technology stocks fared better than financial stocks and the insurers who were hit by the fallout from Hurricane Sandy.

Meggitt 386.5p (up 3.5p, 0.91 per cent) The engineer, which provides systems for the aerospace and defence industries, will update the market on Friday. It edged up the leaderboard on chat that its third-quarter update will be good.

FTSE 100 Fallers

Old Mutual 170.5p (down 2.7p, 1.56 per cent) The South African insurer's share price fell and joined the rest of the insurance sector as fears grew over the damage and claims that could follow after Hurricane Sandy hits in the US east coast.

BP 425p (down 6.6p, 1.53 per cent) The oil giant fell on news that refineries in the US have been shut down ahead of the approaching storm.

FTSE 250 Risers

Soco International 338p (up 10.5p, 3.21 per cent) Analysts at RBC Capital Markets upgraded the oil group to outperform and said the company was a good buy "for investors looking for oil price exposure... and a healthy cash flow."

CSR 350.7p (up 12.3p, 3.63 per cent) The microchip maker gained when technology stocks were in favour as investors edged away from stocks affected by the US storms.

FTSE 250 Fallers

African Barrick Gold 442p (down 23p, 4.95 per cent)The miner was again one of the biggest fallers after Friday's statement that is has had to cut its full-year production guidance.

Man Group 78.45p (down 3.4p, 4.15 per cent) Stake-building and speculation of takeover activity continued to surround hedge fund Man Group but some of last week's gains were lost and it ended up one of the biggest fallers on the index.

News
Alan Bennett has criticised the “repellent” reality shows which dominate our screens
tvBut he does like Stewart Lee
Life and Style
The Google Doodle celebrating the start of the first day of autumn, 2014.
tech
Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
Sport
David Moyes and Louis van Gaal
football
PROMOTED VIDEO
News
i100
Life and Style
Vote with your wallet: the app can help shoppers feel more informed about items on sale
lifeNew app reveals political leanings of food companies
News
Former Governor of Alaska Sarah Palin, left, with her daughter, Bristol
newsShe's 'proud' of eldest daughter, who 'punched host in the face'
Sport
New Zealand fly-half Aaron Cruden pictured in The Zookeeper's Son on a late-night drinking session
rugby
Arts and Entertainment
Salmond told a Scottish television chat show in 2001that he would also sit in front of a mirror and say things like,
tvCelebrity Trekkies from Alex Salmond to Barack Obama
Life and Style
Carol O'Brien, whose son Rob suffered many years of depression
healthOne mother's story of how London charity Maytree helped her son with his depression
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
The cover of Dark Side of the Moon
musicCan 'The Endless River' carry on the tradition? See for yourself
Life and Style
food + drink
News
Rob Merrick's Lobby Journalists were playing Ed Balls' Labour Party MPs. The match is an annual event which takes place ahead of the opening of the party conference
newsRob Merrick insistes 'Ed will be hurting much more than me'
News
A cabin crew member photographed the devastation after one flight
news
Voices
A new app has been launched that enables people to have a cuddle from a stranger
voicesMaybe the new app will make it more normal to reach out to strangers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Quantitative Risk Manager

Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits