FTSE 100 movers: Miners and housebuilders decline; GVC gains
London’s FTSE 100 was down 0.3% at 6,848.02 in afternoon trade on Friday, with housebuilders and miners under pressure.
Tui was weaker day after gaining on the back of its full-year results. Shares in the holiday group advanced on Thursday after it posted a 10.9% rise in annual earnings and said it expects at least 10% growth in earnings for 2019.
Housebuilders Persimmon and Barratt Developments were under the cosh amid worries about Brexit. Canaccord Genuity said in a note on the sector that the the macro outlook remains the big call for 2019 and there is an unusual lack of visibility and a high degree of risk.
"Consensus forecasts point to low single digit percentage GDP growth with unemployment and interest rates remaining at low levels; we have also just started to see wage inflation. Clearly, the uncertainty relates to how Brexit unfolds and how this impacts confidence and unemployment.
"The live risk for us relates to sales rates, particularly in the spring selling season next year and this is likely to be driven by confidence and employment expectations."
Miners were on the back foot following disappointing data out of China, which showed that industrial production was up 5.4% on the year in November, versus expectations of 5.9% growth. Retail sales were up 8.1%, falling short of expectations for 8.8% growth and marking the weakest pace of growth since 2003. Evraz, Glencore and Antofagasta were all weaker.
"It’s not only more evidence that the superpower’s economy is slowing down, but another reminder of the impact the trade tensions between the US and China are having, despite the stop-start progress made between the pair in the last fortnight or so," said Spreadex analyst Connor Campbell.
On the upside, GVC Holdings and Paddy Power rallied on the back of confirmation that a parliamentary vote will be held next week on legislation to crack down on fixed-odds betting terminals.
The vote has been brought forward, which is very positive news for GVC shares because, if the legislation to limit the maximum wagers on FOBTs to £2 is approved, it will be enacted before the 28 March 2019 deadline that would have required GVC to pay a large lump sum to Ladbrokes Coral shareholders as part of a clause of the acquisition earlier this year.
FTSE 100 - Risers
GVC Holdings (GVC) 730.50p 10.43%
Paddy Power Betfair (PPB) 6,575.00p 2.33%
International Consolidated Airlines Group SA (CDI) (IAG) 620.80p 1.70%
Pearson (PSON) 947.00p 1.33%
Relx plc (REL) 1,636.50p 1.02%
AstraZeneca (AZN) 6,147.00p 0.74%
Admiral Group (ADM) 1,982.00p 0.69%
Royal Dutch Shell 'A' (RDSA) 2,355.50p 0.62%
Royal Dutch Shell 'B' (RDSB) 2,373.00p 0.47%
BAE Systems (BA.) 460.20p 0.44%
FTSE 100 - Fallers
Evraz (EVR) 466.10p -3.56%
TUI AG Reg Shs (DI) (TUI) 1,156.00p -2.86%
Royal Mail (RMG) 293.60p -2.75%
Persimmon (PSN) 1,896.00p -2.74%
Micro Focus International (MCRO) 1,450.00p -2.52%
Glencore (GLEN) 287.85p -2.47%
Antofagasta (ANTO) 775.20p -2.44%
Barratt Developments (BDEV) 441.70p -2.43%
Tesco (TSCO) 194.03p -2.30%
Kingfisher (KGF) 225.10p -2.17%