FTSE 250 movers: Royal Mail dips, pubs fizz higher

London’s FTSE 250 was down 0.14% at 19,071.83 in afternoon trade on Tuesday, with Royal Mail leading the index lower.

Shares in the postal service outfit were under the cosh as analysts at JPMorgan Cazenove said there is “potential for material near-term volatility and uncertainty” in the eventual outcome of the company’s dispute with the Communications Workers Union.

“Since RMG’s May 2019 FY results and strategy update we note a material and growing increase in industrial relations tension,” analysts from JPM said in a note, with both parties currently in external mediation over Royal Mail’s plans to expand its network to improve parcel handling.

CYBG followed close behind, with shares in the Clydesdale Bank edging back lower a day after being spurred higher by an upgrade from ‘neutral’ to ‘buy’ at UBS, while Metro Bank dipped after Fidelity Investments reduced its holding in the lender to below 5%.

Up at the other end of the index, Mitchells & Butlers and Marston’s both recorded share price gains as investors thirsted for pub shares in the aftermath of the shock £2.7bn takeover of Greene King by Hong Kong operator CKA.

Neil Wilson, chief market analyst at Markets.com, said: “It’s worth noting that the bombed out share prices of lots of UK-focussed mid-caps and the weakness in sterling clearly makes a number of British companies prime targets for foreign buyers. If you’re looking at UK assets, now could be about as good as time as any to dive in – carpe diem for foreign buyout specialists – expect more deals.”

Finally, Centamin edged higher after investors interpreted Monday’s low prices as a buying opportunity.

Market Movers

FTSE 250 (MCX) 19,071.83 -0.14%