3 Shares The FTSE Should Beat Today

Published in Investing on 18 October 2012

Man (LSE: EMG) and Low & Bonar (LSE: LWB) fall on weak trading.

The FTSE 100 (UKX) has flattened off a bit today, falling 9 points to 5,901 at the time of writing, after a strong run briefly took the index above 5,925 earlier in the week. Is this a pause for breath before the FTSE heads on up to challenge its year high of 5,989? We'll have to wait and see.

But even if the FTSE is going strong, some of its constituent companies aren't. Here are three that are falling back a little and look set to lag the index today:

Man Group

Investment manager Man Group (LSE: EMG) fell 9% today to 84p on the release of an interim management statement that told of a net withdrawal of funds for the fifth quarter in a row. After the continuing lacklustre performance of its main fund, clients withdrew $2.2 billion of their money in the three months to the end of September, after a $1.4 billion net outflow the previous quarter.

The share price had been recovering since July, so the lack of any real sign of improvement is really not what the market wanted to hear.

Low & Bonar

Performance materials specialist Low & Bonar (LSE: LWB) dropped 5% to 54p on the news that weakness in Europe is going to lead to a full-year performance coming in below current expectations -- though still ahead of last year. Sales of the firm's yarns, used for things such as artificial sports surfaces, are significantly lower than last year.

Despite a strong rise earlier this year, the shares have been volatile, but with a forecast dividend of more than 4% plus a forward P/E of 9, the price could still be cheap -- even if those forecasts do need to be slightly amended now.

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UBM (LSE: UBM) saw an abrupt reversal of its recent gains today, falling 34p (5%) after announcing the acquisition of a 70% stake in EFEM, the organiser of Turkey's biggest baby products trade show.

The mid-cap also provided an interim update, telling us of a 5% rise in underlying revenue for the nine months to 30 September, and a 19% rise in adjusted operating profits. That looks pretty good, so why the price fall? It's hard to tell, but after a 50% rise this year, maybe a bit of profit-taking contributed.

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

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knapper001 18 Oct 2012 , 7:35pm

A somewhat misleading title given none of there are actually in the FTSE100?

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