FTSE 100 movers: Berkeley gains on update; utilities retreat
London's FTSE 100 was down 0.1% at 7,267.85 in afternoon trade on Friday, remaining near the flat line after the release of disappointing US jobs data.
Berkeley Group was a high riser as the housebuilder said first-quarter market conditions in London and the South East had remained robust with stable pricing although Brexit worries and high transaction costs were constraining the wider market.
Pricing has remained stable and the group's forward sales position remained above £1.8bn, the company said ahead of its annual meeting.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Berkeley’s homes aren’t your average new build, typical prices are more than double that of competitors. It’s renowned for taking on more difficult sites, which require more specialist development, and creating homes with a more bespoke edge. Unique selling points are important tools in Berkeley’s armoury, particularly in tougher trading conditions.
"The group isn’t home and dry though, despite its strong operational performance. Sales are holding up well for now, but should the London market begin to suffer more seriously, that could change. A balance sheet with over £900m of cash means the business is in a sturdy position, but the political and economic clouds on the horizon should be watched closely."
Melrose Industries was higher for the second day running after well-received results on Thursday. The turnaround specialist posted a rise in interim pre-tax profit thanks to a solid performance in its aerospace business, as it hiked its dividend by 10% and expressed confidence over its full-year trading.
Utilities were under the cosh, with United Utilities, Centrica, Severn Trent and SSE all lower.
BP and Royal Dutch Shell were weaker as oil prices retreated, with West Texas Intermediate down 2.1% at $55.14 a barrel and Brent crude 1.8% lower at $59.88.
FTSE 100 - Risers
Smurfit Kappa Group (SKG) 2,646.00p 4.92%
Berkeley Group Holdings (The) (BKG) 3,968.00p 2.45%
Croda International (CRDA) 4,786.00p 1.96%
Melrose Industries (MRO) 205.60p 1.88%
London Stock Exchange Group (LSE) 7,340.00p 1.83%
Rentokil Initial (RTO) 464.30p 1.51%
Smith (DS) (SMDS) 350.40p 1.48%
Rolls-Royce Holdings (RR.) 787.40p 1.44%
Pearson (PSON) 857.40p 1.37%
Hargreaves Lansdown (HL.) 1,976.50p 1.33%
FTSE 100 - Fallers
United Utilities Group (UU.) 779.80p -3.47%
Centrica (CNA) 67.58p -2.20%
Severn Trent (SVT) 2,019.00p -2.09%
SSE (SSE) 1,147.00p -1.84%
Diageo (DGE) 3,435.05p -1.55%
Taylor Wimpey (TW.) 149.55p -1.45%
BP (BP.) 499.70p -1.44%
Aveva Group (AVV) 3,768.18p -1.41%
Royal Dutch Shell 'B' (RDSB) 2,252.50p -1.16%
Royal Dutch Shell 'A' (RDSA) 2,258.50p -1.14%