FTSE 100 movers: Antofagasta boosted by RBC upgrade; housebuilders take a hit
London's FTSE 100 was up 0.2% to 7,578.50 in quiet afternoon trade on Friday, with volumes low ahead of the bank holiday weekend.
Antofagasta was the standout gainer as RBC Capital Markets lifted the stock to 'outperform' from 'sector perform' on valuation grounds.
The bank, which trimmed its price target on the stock to 950p from 980p, said the shares have de-rated significantly, which is a rarity for ANTO and provides a "compelling" entry point.
RBC said the company's first half was one to forget but the second half suggests better prospects. It expects the shares to regain a premium valuation over the coming months, possibly enhanced by its copper exposure, which has significantly underperformed iron ore by 10% year-to-date.
Other miners were also in the green, with Glencore, Anglo, BHP and Rio all higher as copper and zinc prices rose.
Shire gained after the US Food and Drug Administration approved a first-of-its-kind drug, Takhzyro, to treat patients aged 12 plus suffering from a rare hereditary disease that causes swelling.
On the downside, housebuilders Berkeley Group, Taylor Wimpey, Persimmon and Barratt Developments were all weaker after the latest figures from UK Finance showed mortgage approvals fell in July.
Mortgage approvals declined to 39,584 from 40,330 in June, versus consensus expectations for a rise to 40,700. Meanwhile, gross mortgage lending was up around 7.6% on the year before to £24.6bn, while credit card spending was up 8.1% and personal deposits grew 1.2% in the last 12 months.
Samuel Tombs, chief economist at Pantheon Macroeconomics, said the renewed fall in mortgage approvals in July, to below their post-referendum average of 40.4k, demonstrates that the housing market still is fundamentally slowing.
FTSE 100 - Risers
Antofagasta (ANTO) 827.00p 2.73%
Glencore (GLEN) 317.62p 2.29%
Shire Plc (SHP) 4,518.00p 2.16%
Micro Focus International (MCRO) 1,295.00p 2.09%
Anglo American (AAL) 1,565.40p 1.91%
BHP Billiton (BLT) 1,645.40p 1.19%
Rio Tinto (RIO) 3,705.00p 1.19%
Royal Dutch Shell 'A' (RDSA) 2,564.50p 1.04%
Paddy Power Betfair (PPB) 7,215.00p 0.91%
Johnson Matthey (JMAT) 3,564.00p 0.91%
FTSE 100 - Fallers
Ocado Group (OCDO) 1,083.44p -2.79%
Berkeley Group Holdings (The) (BKG) 3,618.00p -2.22%
British American Tobacco (BATS) 3,977.00p -1.74%
Taylor Wimpey (TW.) 168.75p -1.55%
Persimmon (PSN) 2,451.00p -1.53%
Barratt Developments (BDEV) 538.40p -1.46%
Imperial Brands (IMB) 2,808.00p -1.28%
Sainsbury (J) (SBRY) 336.20p -1.26%
DCC (DCC) 7,025.00p -1.13%
GVC Holdings (GVC) 1,095.00p -1.08%