Sector movers: Retailer ramp up, overseas earners slip

Telecoms and pharmaceuticals were tugging the FTSE 100 lower on Tuesday, while retailers and housebuilders were among the top risers as the mid-cap 250 index outperformed its sibling.

BT was the main weight on the telecoms sector after analysts at Berenberg downgraded the telecoms giant BT as it questioned whether the group's free cash flow would be enough for it to support its pension deficit, acquire mobile spectrum, buy back employee share options to prevent dilution and fund ongoing restructuring.

Tobacco companies were on the wane a day after the US Supreme Court blocked appeals by British American Tobacco and US peer Altria against a class action lawsuit from smokers in Florida. Cigrarette makers could be exposed to billions of dollars in compensation. Rival Imperial Tobacco was also singed.

Pharmaceuticals were also hit by US legal concerns. AstraZeneca boss Pascal Soriot was one of several big pharma CEO that were lined up to testify in front of the Senate Finance Committee on Tuesday as part of an investigation into drug pricing in the US.

Ideas being mulled by Congress to help citizens access cheap drugs include allowing the importation of drugs or enable Medicare to negotiate drug prices.

Astra, despite announcing that its Lynparza cancer drug has improved survival in pancreatic cancer, and rival GSK were both down more than 1%.

Retailers were prominent among the risers, led by Ocado and Marks & Spencer as the pair confirmed that they are in talks about potentially forming a joint venture.

The likes of Next and Halfords were also on the front foot as traders and investors took heart from developments in Westminster, leaping on the chance to buy some bargains as the chance of a no-deal Brexit appeared to fade. The resulting surge in the pound also hit dollar and euro earners such as Experian and Vodafone.

Economist Andrew Goodwin at Oxford Economics sounded a note of caution, arguing that a short delay was unlikely to make much difference. “Ultimately MPs will still have to make the same choice between [May’s] deal, no deal and no Brexit.

“As far as we’re concerned, though the UK’s departure from the EU looks likely to be delayed, the probabilities of the various possible end states has not changed. We still place a 60% chance on the Withdrawal Agreement being implemented, 35% on the UK exiting without a deal and just a 5% probability on the UK remaining in the EU.”

Housebuilders were up on the back of results from Persimmon, where profits topped £1bn as it increased its use of the government's Help to Buy scheme.

Peers Taylor Wimpey, Barratt Developments and Berkeley Group all racked up healthy gains.

Builders' merchant Travis Perkins also surged as full-year profit topped expectations thanks in part to cost-cutting.

Top performing sectors so far today

Automobiles & Parts 7,332.87 +2.87%

General Retailers 2,255.61 +2.16%

Food & Drug Retailers 3,787.92 +2.13%

Oil Equipment, Services & Distribution 10,825.41 +2.11%

Household Goods & Home Construction 15,943.41 +1.53%

Bottom performing sectors so far today

Fixed Line Telecommunications 2,555.52 -2.94%

Tobacco 33,414.63 -2.29%

Mobile Telecommunications 3,044.82 -2.16%

Chemicals 14,130.46 -1.47%

Pharmaceuticals & Biotechnology 14,883.32 -1.38%

Market Movers

FTSE 100 (UKX) 7,132.51 -0.71%
FTSE 250 (MCX) 19,295.42 0.25%
techMARK (TASX) 3,486.58 -0.86%

FTSE 100 - Risers

Ocado Group (OCDO) 974.80p 10.00%
Taylor Wimpey (TW.) 173.05p 4.66%
Persimmon (PSN) 2,443.00p 3.87%
GVC Holdings (GVC) 669.50p 3.48%
Barratt Developments (BDEV) 592.00p 3.28%
Next (NXT) 5,168.00p 2.83%
Marks & Spencer Group (MKS) 301.90p 2.79%
easyJet (EZJ) 1,346.50p 2.43%
Wood Group (John) (WG.) 541.00p 2.35%
Barclays (BARC) 162.88p 2.30%

FTSE 100 - Fallers

Fresnillo (FRES) 902.20p -7.56%
International Consolidated Airlines Group SA (CDI) (IAG) 619.00p -4.03%
BT Group (BT.A) 220.20p -3.17%
Croda International (CRDA) 4,902.00p -3.12%
British American Tobacco (BATS) 2,821.50p -2.49%
Experian (EXPN) 2,008.00p -2.38%
Vodafone Group (VOD) 136.58p -2.16%
Imperial Brands (IMB) 2,546.50p -2.06%
NMC Health (NMC) 2,748.00p -2.00%
Standard Chartered (STAN) 607.50p -1.84%

FTSE 250 - Risers

Travis Perkins (TPK) 1,416.50p 11.54%
Aston Martin Lagonda Global Holdings (AML) 1,333.80p 6.31%
Grafton Group Units (GFTU) 807.50p 5.07%
Galliford Try (GFRD) 733.47p 4.86%
Bellway (BWY) 2,991.00p 4.47%
Plus500 Ltd (DI) (PLUS) 802.89p 4.27%
Bovis Homes Group (BVS) 1,051.00p 3.80%
Halfords Group (HFD) 243.47p 3.34%
Redrow (RDW) 606.50p 3.32%
Crest Nicholson Holdings (CRST) 391.60p 3.22%

FTSE 250 - Fallers

Babcock International Group (BAB) 552.40p -4.20%
Dechra Pharmaceuticals (DPH) 2,446.00p -3.40%
Inmarsat (ISAT) 386.50p -3.11%
TI Fluid Systems (TIFS) 183.60p -3.06%
Sophos Group (SOPH) 334.60p -3.01%
Metro Bank (MTRO) 1,501.00p -2.72%
Tate & Lyle (TATE) 699.20p -2.70%
Ascential (ASCL) 367.40p -2.55%
Pantheon International (PIN) 2,128.00p -2.39%
Assura (AGR) 57.00p -2.23%