Housebuilders dent London's FTSE 100 even as banks gain

by 24britishtvJan. 10, 2022, 11 a.m. 82
-

Jan 10 (Reuters) - UK's blue-chip index slipped in morning trade on Monday as housebuilders were hit by $5.4 billion in costs to remove cladding from buildings, while banking shares extended gains on expectations of interest rate hikes.

The FTSE 100 (.FTSE) was down 0.1% following weekly gains spurred by a rotation into sectors such as banks, oil & gas and mining as investors priced in faster interest rate hikes by major central banks.

Big banks such as HSBC (HSBA.L), Barclays (BARC.L) and Standard Chartered (STAN.L) rose about 1% each, building on last week's gains.

Berkeley Group , Barratt Developments (BDEV.L), Persimmon (PSN.L) and Taylor Wimpey (TW.L) were down between 3.0% and 2.8% after Britain ordered housebuilders to pay around $5.4 billion to help remove dangerous cladding from buildings following a deadly 2017 London fire. read more

Housing minister Michael Gove set an early-March deadline for the industry to agree to a fully funded plan of action, including a dedicated fund to deal with unsafe cladding.

"Given the tone of the letter from Her Majesty's Treasury (against further taxation) it appears their preference is to push the developers to agree to quick remedy for recladding against the backdrop of a threat of legal action," Jefferies analysts said.

Persimmon had the least risk due to its low exposure, while Barratt, Bellway, Berkeley & Taylor Wimpey all had the higher risk of a more meaningful step up in provisions, Jefferies said.

Housebuilders Redrow (RDW.L), Countryside Properties (CSPC.L), Bellway (BWY.L) and Vistry Group (VTYV.L) dropped between 2.8% and 3.7%, while the FTSE 250 index (.FTMC) slipped 0.2%.

Overall, the midcap index slipped 0.2%, adding to weekly losses as a surge in COVID-19 cases due to the Omicron variant hit sentiment.

Plus500 (PLUSP.L) rose 3.1% after the online trading platform said it expects annual results to exceed market expectations, even as it reported slower fourth-quarter growth. read more

Biotech firm Avacta Group (AVCT.L) slumped 22.8% after it said it was halting sales of its COVID-19 antigen lateral flow test, AffiDX, to replace antibodies in the device and boost its ability to detect the Omicron variant at lower viral loads. read more

Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta

-

Related Articles

HOT TRENDS

Big Mood review – Nicola Coughlan is a force of nature

by 24britishtvMarch 29, 2024, 3 a.m.2
HOT TRENDS

50 Cent Denies Daphne Joy Sexual & Physical Abuse Allegations

by 24britishtvMarch 29, 2024, 3 a.m.2
HOT TRENDS

50 Cent Denies Ex Daphne Joy’s Rape and Abuse Allegations

by 24britishtvMarch 29, 2024, 2 a.m.2
HOT TRENDS

Stephen Bear to pay £27k over illegal sex tape of Georgia Harrison

by 24britishtvMarch 29, 2024, 1 a.m.2
HOT TRENDS

Beyoncé's Cowboy Carter: The verdict - is it Yeehaw or No Ma'am?

by 24britishtvMarch 29, 2024, midnight2
HOT TRENDS

Everything to know on ITV courtroom drama The Twelve starring Sam Neill

by 24britishtvMarch 29, 2024, midnight2
HOT TRENDS

Everything to know on ITV courtroom drama The Twelve starring Sam Neill

by 24britishtvMarch 28, 2024, 11 p.m.2
HOT TRENDS

FA charges Tonali over alleged betting rules breaches

by 24britishtvMarch 28, 2024, 11 p.m.2
HOT TRENDS

Isle of Man closer to assisted dying legalisation

by 24britishtvMarch 28, 2024, 10 p.m.2
HOT TRENDS

Watch: Comedian Ed Gamble in the hot dog house over tour poster

by 24britishtvMarch 28, 2024, 10 p.m.2
HOT TRENDS

Fallen 'Crypto King' Sam Bankman-Fried gets 25 years for fraud

by 24britishtvMarch 28, 2024, 9:20 p.m.2
HOT TRENDS

Good Friday’s Answers to Wounded Church Members

by 24britishtvMarch 28, 2024, 8:20 p.m.2
HOT TRENDS

Two people dead due to Storm Nelson

by 24britishtvMarch 28, 2024, 7 p.m.2
HOT TRENDS

Assisted dying: what are the laws in UK and what changes are proposed?

by 24britishtvMarch 28, 2024, 7 p.m.2
HOT TRENDS

Sam Bankman-Fried live updates: 'Crypto King' sentenced to 25 years prison

by 24britishtvMarch 28, 2024, 6 p.m.2
HOT TRENDS

Storm Nelson brings snow in Devon raising fears of Easter travel chaos

by 24britishtvMarch 28, 2024, 6 p.m.2
HOT TRENDS

Could assisted dying be coming to Scotland?

by 24britishtvMarch 28, 2024, 4 p.m.2
HOT TRENDS

Larry Lloyd | 1948 - 2024

by 24britishtvMarch 28, 2024, 4 p.m.2
HOT TRENDS

Happy Easter in a plastic egg •

by 24britishtvMarch 28, 2024, 4 p.m.2
HOT TRENDS

A closer look: can right whales and offshore wind safely coexist?

by 24britishtvMarch 28, 2024, 4 p.m.2
HOT TRENDS

Thames Water boss says bills need to rise by 40%

by 24britishtvMarch 28, 2024, 3 p.m.2
HOT TRENDS

A closer look: can right whales and offshore wind safely coexist?

by 24britishtvMarch 28, 2024, 2 p.m.2