FTSE 100 round-up: GSK, Haleon, Aviva and Coca-Cola HBC

Selling pressure at GSK and Haleon intensified today, while Aviva was the subject of positive broker comment and Coca-Cola HBC impressed with half-year results.

GSK (LSE:GSK) shareholders suffered on two fronts today as the drug giant’s shares and those of spin-off consumer healthcare division Haleon (LSE:HLN) topped the FTSE 100 fallers board.

The continuation of Haleon’s disappointing performance since making its debut at 330p in mid-July saw the loss of another 24.9p to 254.6p, on top of yesterday’s 8% slide.

GSK’s stock market record as a standalone business has also frustrated investors since its biggest corporate restructuring in two decades, when it demerged the Aquafresh and Panadol division in order to focus on boosting the growth of its biopharma operations.

• Discover: How to buy Shares | Free regular investing | Super 60 Investment Ideas

Shares were still trading above 1,700p as recently as early this month, but the pace of its recent sell-off quickened dramatically today as sentiment towards Haleon and GSK was hit by speculation over potential US litigation relating to recalled heartburn drug Zantac.

GSK slid to 1,393p after shedding another 163p in trading today.

The selling pressure at Haleon comes after City analysts recently started their coverage with a large degree of caution. As well as concerns that consumers will trade down at a time of squeezed budgets, there’s been a focus on the amount of GSK debt on Haleon’s balance sheet.

• Insider: bosses snap up Haleon shares and a blue-chip dividend stock
• FTSE 100 backed to go higher, despite UK uncertainty

Other potential downsides highlighted by analysts recently include the overhang from the November expiry of lock-up agreements on the 45% retained stakes of GSK and Pfizer (NYSE:PFE).

Deutsche Bank recently opted for a target price of 300p, but Jefferies is more optimistic at 340p. While it’s been a rough ride for GSK investors who have held on to their Haleon shares since the demerger, the recent heavy selling pressure appears to have presented a buying opportunity for many interactive investor clients.

Haleon was the most-traded stock on our platform in today’s morning trading, with the vast majority being “buy” orders. GSK was second on the list, with 76% wanting to buy the stock after the recent wave of selling pressure.

Customers are also circling Aviva (LSE:AV.) shares after the insurer’s better-than-expected half-year results yesterday included a commitment to “regular and sustainable” capital returns.

• ii view: Aviva share buyback plans add to 40% dividend hike
• Daily Trading Flash: 10 most-traded shares 11 August 2022

Deutsche Bank said today it sees the potential for between £300 million and £400 million a year of organically generated excess cash to be paid out each year, alongside a periodic upside based on excess solvency.

Shares closed 12% higher at 465p last night but Deutsche Bank analyst Oliver Steel has a price target of 490p, noting that Aviva trades with the same forward dividend yield of 7.4% and growth rate of 6% as Legal & General (LSE:LGEN).

He added: “Both shares look good value on any long-term view, but we think Aviva has the safer balance sheet in case of near-term shocks.” Bank of America has also upped its price target to 500p, but Aviva shares fell back 4.7p to 460.2p today.

The wider FTSE 100 index stood 27.3 points lower at 7479.8, but this still represents decent progress from the 7,039 seen only a month ago as sentiment improves on hopes that the US Federal Reserve is close to slowing the pace of interest rate hikes.

Corporate earnings have also boosted investor confidence in recent weeks, with bottling company Coca-Cola HBC (LSE:CCH) the latest example after it said its markets outside of Russia and Ukraine continue to show strong momentum with double-digit organic revenue growth.

Pricing, mix benefits and cost efficiencies have helped  to mitigate input cost increases, leading the FTSE 100-listed company to reinstate full-year earnings guidance in the range of 740 million euros and 820 million euros (£626 million-£693.9 million).

UBS said the midpoint of this estimate implied a 7% upside to consensus, prompting shares to improve 57p to their highest point since the Ukraine invasion at 2038p. The bank has a “buy” recommendation and current price target of 2,250p.