FTSE 100 movers: BHP hit by downgrades

22nd Jul 2009 10:48

Mining giant BHP Billiton's annual production report proved disappointing, especially the figures for iron ore says broker Investec.The South African broker has cut its recommendation on the stock from "buy" to "hold" after the output update. "While iron ore production (40% of 2009's estimated earnings) disappointed in the fourth quarter relative to our expectations (-7%) and compared to the third quarter (-4%), the fact that sales fell 9% quarter on quarter when Rio Tinto increased sales by 33% in the same period, is perhaps the biggest disappointment," Evolution Securities is more bearish and a seller of the stock. It believes the shares are "too far ahead of events, especially given scope for mine restarts." Barclays and Lloyds are under pressure after some gloomy broker notes yesterday. JP Morgan estimates Barclays could need to find a further £12.8bn in additional capital to meet proposed changes to rules governing investment banks that undertake higher risk activities. Lloyds, meanwhile, could face bad debt provisions of £46bn over the next two years according to Sandy Chen at Panmure Gordon.FTSE 100 - RisersNational Grid (NG.) 576.00p +2.40%Severn Trent (SVT) 1,118.00p +2.38%TUI Travel (TT.) 229.25p +1.89%Reed Elsevier (REL) 484.75p +1.68%Imperial Tobacco Group (IMT) 1,655.00p +1.47%Scottish & Southern Energy (SSE) 1,130.00p +1.44%Schroders NV (SDRC) 748.00p +1.36%Centrica (CNA) 233.00p +1.19%Pennon Group (PNN) 502.50p +1.16%BG Group (BG.) 1,064.00p +1.14%FTSE 100 - FallersLonmin (LMI) 1,104.00p -5.88%Kazakhmys (KAZ) 715.00p -5.49%Xstrata (XTA) 692.00p -4.30%Eurasian Natural Resources (ENRC) 776.50p -2.94%BHP Billiton (BLT) 1,485.50p -2.91%Barclays (BARC) 300.75p -2.76%London Stock Exchange Group (LSE) 664.00p -2.71%Lloyds Banking Group (LLOY) 71.47p -2.68%Antofagasta (ANTO) 688.50p -2.62%Legal & General Group (LGEN) 62.44p -2.44%