Why Hargreaves Lansdown PLC, Taylor Wimpey plc and Fenner plc Should Lag The FTSE 100 Today

The FTSE 100 (FTSEINDICES: ^FTSE) has been climbing slowly but steadily since mid-morning, and approaching 2pm today it was up 39 points to 6,805. And although the index has shown intra-day volatilty, it looks like we could be on for our third winning session in a row this week with an overall gain so far since Friday of 65 points.

But it’s not good news for everyone. Here are three from the FTSE indices falling on today’s news:

Hargreaves Lansdown

Hargreaves Lansdown shares were down 62p (4.1%) to 1,446p by early afternoon, after the investment manager revealed the likely effects of the Retail Distribution Review on its future charges.

The firm estimates that the new pricing structure “represents an £8 million investment in lower client charges by HL in the first 12 months of operation“, with possibly around a further £9m by 2016 as old commission arrangements expire.

Despite the fall, Hargreaves Lansdown shares have still doubled over the past 12 months.

Taylor Wimpey

Taylor Wimpey (LSE: TW) shares dropped 1.8p (1.5%) to 118p on the release of a year-end trading statement, despite the update telling of “significant improvements“.

Total home completions rose by 7% during the year to December 2013, to 11,696. The average selling price was also up 7%, to £210,000, from a combination of general price increases and a shift to better quality locations.

The firm said it has started the new year “with an excellent order book, with improved margins and pricing and a very strong set of selling locations”.


An update for the period from September to January sent Fenner (LSE: FENR) shares down 14.1p (3.1%) to 441p, although the engineering firm did tell us it has “continued to make progress towards its strategic objectives against a generally improving macro-economic environment“.

But Fenner’s Advanced Engineering Products division is now likely to see revenue and operating profit weighted more towards the second half of the financial year, mainly due to various sales deferrals.

The shares had been on a strong climb since last summer, but today’s drop leaves the price only 10% up over 12 months.

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> Alan does not own any shares mentioned in this article.