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FTSE 100 movers: WPP, Reckitt rally on results

13:52, 23rd October 2024

London's FTSE 100 was down 0.5% at 8,267.31 in afternoon trade on Wednesday.
Advertising giant WPP rallied after saying it returned to growth in the third quarter, as it reiterated its outlook for the year. Third-quarter like-for-like revenue less pass-through costs rose 0.5%, with reported revenue up 1.4% and LFL revenue up 4.1%.

Russ Mould, investment director at AJ Bell, said: "WPP is one of the biggest economic bellwethers on the UK stock market. If companies are feeling confident about the outlook, they're more likely to spend money on marketing and advertising. If they're worried about an economic downturn, they cut back on promotions. That's why WPP is a highly cyclical stock and its updates typically provide a clue on corporate confidence.

"Its third quarter update doesn't ring any alarm bells, but neither does it scream great times ahead. While WPP works for some of the world's biggest companies, its third quarter net new billings only showed minimal progress year-on-year. Year-to-date the figure is running behind 2023's equivalent. North America, Western Europe and India are doing well, China is not.

"With no change to full-year guidance, there is a sense of caution around WPP's update and while it talks with optimism, in reality it could be a tough few months to go."

Reckitt Benckiser gained as the consumer goods giant's third-quarter like-for-like net sales growth beat estimates.

Barratt Redrow advanced as it highlighted "more stable" market conditions, said integration of the two businesses had begun "at pace" and that it expects to deliver cost synergies of at least £90m.

FTSE 100 - Risers

WPP (WPP) 809.20p 4.60%
Reckitt Benckiser Group (RKT) 4,908.00p 3.04%
Barratt Redrow (BTRW) 486.90p 2.85%
JD Sports Fashion (JD.) 137.15p 2.27%
Smurfit Westrock (DI) (SWR) 3,474.00p 1.67%
Rentokil Initial (RTO) 377.20p 1.40%
Flutter Entertainment (DI) (FLTR) 17,870.00p 0.99%
Smith (DS) (SMDS) 465.80p 0.60%
Pearson (PSON) 1,035.00p 0.53%
Whitbread (WTB) 3,332.00p 0.45%

FTSE 100 - Fallers

Unilever (ULVR) 4,646.00p -2.37%
3i Group (III) 3,310.00p -2.16%
Intermediate Capital Group (ICG) 2,078.00p -2.07%
IMI (IMI) 1,753.00p -1.74%
Phoenix Group Holdings (PHNX) 514.00p -1.63%
InterContinental Hotels Group (IHG) 8,574.00p -1.61%
Anglo American (AAL) 2,341.50p -1.60%
Antofagasta (ANTO) 1,802.00p -1.50%
Smiths Group (SMIN) 1,589.00p -1.49%
M&G (MNG) 202.70p -1.46%

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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