GKN, Pendragon and Braemar Shipping Services

“The FTSE100 opened in negative territory, despite US markets climbing on Friday. Investors remain cautious amid tensions in Catalan and the ever-present shadow of Brexit negotiations,” says AJ Bell Investment Director Russ Mould.

“Engineering giant GKN led the blue-chip board in early trading following good organic growth in the third quarter, although recent margin performance has been below forecasts. This is mainly due to programme transitions and on-going operational challenges in GKN Aerospace North America and the group is redoubling its efforts to improve its performance in that business. GKN also still faces two probable claims which are expected to result in a charge of around £40m in the fourth quarter. GKN’s shares were up by more than 3.7%.

“Car dealership group Pendragon was the biggest FTSE All-Share faller following a profit warning. The group has been hit by drop in new car sales as consumer confidence waned. Margins on its used car business were also squeezed due to price corrections in the market. Pendragon expects a resumption of profit growth in 2018 but investors were less optimistic and the group’s shares were down by over 18.9%.

“Braemar Shipping Services’ shares were down in early trading despite forecasting that it remained on track to meet its full-year objectives. The group’s shipbroking division remains resilient and has maintained a strong forward order book and its technical division saw an improved performance following a restructuring programme. But its markets remain highly competitive and cyclical. The group’s shares were down by more than 3.2%.”

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