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The Guardian - UK
The Guardian - UK
Business
Nick Fletcher

Reckitt rises after upgrade but poor reception for Barclays and Associated British Foods figures

Away from the corporate updates and economic news, Reckitt Benckiser is among the leading risers after a broker upgrade.

Citigroup has raised its 2011 earnings per share forecast for the Cillit Bang business by 8% in the wake of last week's first quarter figures, and as a result has lifted its target price from £42 to £43. The upgrade has lifted Reckitt's shares by 77p to £33.38.

Overall the market has moved into positive territory, as UK GDP came in much as expected, with growth for the first quarter of 0.5%. In real terms however this means two quarters of no growth, making an interest rate rise any time soon pretty unlikely.

The FTSE 100 is now up 9.09 points at 6078.45, with temporary power supplier Aggreko leading the way. Its shares are now 88p higher at £17.98 following its trading update.

Among the many other companies reporting, there was disappointment for investors in Associated British Foods, down 66p at 979p, and Barclays, 15.65p lower at 286.2p. But GlaxoSmithKline added 18p to 1278.5p as it reported first quarter profits after restructuring of £2.4bn, up from £1.9bn, as disposal proceeds offset a fall in sales.

Engineering group Bodycote International is leading the mid-cap risers, up 42.6p to 379p after a positive update. It said operating profit for the year would be at the top end of forecasts, helped by increased demand from manufacturers of heavy trucks.

And Domino's Pizza has added 27.6p to 421.5p after it bought 75% of the master franchisee in Germany.

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