FTSE 100 movers: AstraZeneca slumps on acquisition; housebuilders rally
London’s FTSE 100 was flat at 6,543.75 in afternoon trade on Monday.
Housebuilders and banks were the biggest gainers amid Brexit hopes, with Persimmon, Taylor Wimpey, Barratt Developments, Berkeley, NatWest, Barclays and Lloyds all higher.
Neil Wilson, chief market analyst at Markets.com, said: "These stocks are a leveraged bet on the UK economy, which in the near-term at least is going to be at the mercy of a Brexit trade deal and the vaccination programme. Markets have also pushed back expectations for interest rate cuts by the Bank of England, which meets later this week."
Housebuilders also got a lift after Rightmove predicted UK house prices will rise 4% in 2021 as values continue to increase modestly after the end of the stamp duty holiday that has fuelled a mini-boom.
On the downside, pharmaceuticals company AstraZeneca slumped after saying it was buying US drug developer Alexion in a cash and shares deal worth $39bn.
Russ Mould, investment director at AJ Bell, said: "You would think AstraZeneca could do without any distractions as it looks to address some of the scepticism which has built up around the Covid vaccine developed in partnership with Oxford University.
"Perhaps that’s why the market has taken exception to its $39 billion cash and shares bid for US biotech Alexon, with the company also taking on lots of debt to fund the deal.
"Alexon has failed to attract a suitor for some time, despite shareholder pressure, so investors might see AstraZeneca as a bit of a sap for pitching up with a 45% premium. It is also an immunology-focused business which will stick out like a sore thumb against the rest of AstraZeneca’s portfolio."
FTSE 100 - Risers
Persimmon (PSN) 2,591.00p 5.20%
NATWEST GROUP PLC ORD 100P (NWG) 157.70p 4.89%
Taylor Wimpey (TW.) 157.85p 4.85%
JD Sports Fashion (JD.) 787.60p 4.76%
Melrose Industries (MRO) 162.20p 4.75%
Next (NXT) 6,678.00p 4.57%
Barclays (BARC) 142.00p 4.37%
Barratt Developments (BDEV) 608.40p 4.29%
Lloyds Banking Group (LLOY) 35.52p 4.24%
Berkeley Group Holdings (The) (BKG) 4,364.00p 3.88%
FTSE 100 - Fallers
AstraZeneca (AZN) 7,588.00p -7.01%
Polymetal International (POLY) 1,644.50p -3.49%
InterContinental Hotels Group (IHG) 4,707.00p -1.49%
BHP Group (BHP) 1,960.60p -1.43%
Relx plc (REL) 1,796.50p -1.32%
British American Tobacco (BATS) 2,881.50p -1.22%
Royal Dutch Shell 'A' (RDSA) 1,379.00p -1.13%
Reckitt Benckiser Group (RB.) 6,568.00p -0.99%
GlaxoSmithKline (GSK) 1,399.20p -0.99%
Experian (EXPN) 2,736.00p -0.98%