FTSE 100 movers: Housebuilders take a hit; Kingfisher rallies
London’s FTSE 100 was down 0.1% at 5,847.03 in afternoon trade on Friday.
Housebuilders were under the cosh after a weak UK construction PMI reading for August and after the UK's competition regulator said it will take enforcement action against four of the biggest names in the sector over their treatment of leasehold homeowners.
The CMA has opened cases on Barratt, Countryside, Persimmon and Taylor Wimpey. It said the companies may have imposed unfair terms on leaseholders and misled buyers.
On the upside, B&Q owner Kingfisher was the top gainer after an upgrade to ‘outperform’ at Exane.
Imperial Brands was a high riser after JPMorgan Cazenove upgraded its rating on the shares to ‘overweight’ from ‘neutral’, as it said the current valuation is pricing in severe downside risks, leaving the risk/reward tilted strongly to the upside following the dividend cut in May.
"Supported by its robust free cash flow…we see IMB’s circa 50% payout ratio as sustainable with a further £1bn+ per annum available for cash returns or M&A from FY23e in our base case," said JPM.
Hikma Pharmaceuticals was also boosted by a broker note as Barclays lifted its recommendation to 'overweight' after a US court ruled in favour of the generic drugmaker's treatment for heart conditions.
On Thursday the US court of appeals for the federal circuit upheld a district court ruling against Amarin's objections to Hikman's generic version of its Vascepa drug. The court ruled Hikma's version did not infringe any of Amarin's six main patents for the fish-oil based treatment.
FTSE 100 - Risers
Kingfisher (KGF) 277.20p 4.45%
Imperial Brands (IMB) 1,319.50p 3.90%
Melrose Industries (MRO) 117.55p 3.89%
Fresnillo (FRES) 1,295.00p 3.56%
NATWEST GROUP PLC ORD 100P (NWG) 108.55p 3.38%
Antofagasta (ANTO) 1,087.50p 3.13%
Anglo American (AAL) 1,823.00p 3.06%
Evraz (EVR) 328.50p 2.98%
Hikma Pharmaceuticals (HIK) 2,480.00p 2.82%
International Consolidated Airlines Group SA (CDI) (IAG) 221.80p 2.78%
FTSE 100 - Fallers
Barratt Developments (BDEV) 515.40p -4.45%
Scottish Mortgage Inv Trust (SMT) 877.50p -3.31%
Persimmon (PSN) 2,575.00p -2.50%
Taylor Wimpey (TW.) 118.05p -2.32%
Land Securities Group (LAND) 546.80p -2.20%
SEGRO (SGRO) 929.80p -1.55%
British Land Company (BLND) 353.30p -1.53%
Pennon Group (PNN) 1,022.50p -1.26%
Ocado Group (OCDO) 2,346.00p -1.10%
Prudential (PRU) 1,150.00p -1.08%