FTSE 100 movers: Pru soars on dividend rise

13th Aug 2009 10:46

Insurer Prudential leads the FTSE 100 after profit before tax from continuing operations increased 6% to £688m, driven by strong underlying operating performance in Asia.But it was the dividend hike that really caught the eye. After big dividend cuts from rivals Legal & General and Aviva, the Pru upped its payout by 5% to 6.29p.The interim results came in "well above the top end of the range of expectations" and according to broker Panmure Gordon. "The key driver appears to be new business profitability that, at £691m (+25%), was well above £537m consensus." "These are good figures, and have benefited from capital preservation and focus on profitability in tough market conditions," the broker added. It has a target price of 585p for the stock. Travel group Thomas Cook is the biggest faller despite posting a rise in revenues in the nine months to June 30. Revenue for the nine month period climbed by 10.7% from the same period the previous year to £5.9m, while losses from operations before exceptional items and swine flu reduced by 43.4% to £49.5m.Broker KBC Peel Hunt says the figures were the perfect opportunity to downgrade the shares to "hold" from "buy" after their recent good run. "The shares have rallied usefully from the 200p level and while the rating looks undemanding the best strategy looks to be to pick up stock on any placing," the broker saidFTSE 100 - RisersPrudential (PRU) 519.50p +8.61%Xstrata (XTA) 816.50p +6.80%Petrofac Ltd (PFC) 891.50p +6.70%Kazakhmys (KAZ) 909.50p +6.50%Eurasian Natural Resources (ENRC) 807.00p +5.77%Antofagasta (ANTO) 747.00p +4.92%Lonmin (LMI) 1,480.00p +4.52%Rio Tinto (RIO) 2,416.00p +4.50%FTSE 100 - FallersThomas Cook Group (TCG) 218.40p -5.04%BT Group (BT.A) 132.60p -1.78%Thomson Reuters (TRIL) 1,949.00p -1.76%GlaxoSmithKline (GSK) 1,170.50p -1.72%Carnival (CCL) 1,826.00p -1.72%Inmarsat (ISAT) 530.50p -1.67%Severn Trent (SVT) 960.50p -1.54%Royal Dutch Shell 'B' (RDSB) 1,570.00p -0.88%