Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London midday: FTSE extends gains as miners rally; housebuilders slump
(Sharecast News) - London stocks had extended gains by midday on Wednesday following upbeat UK and Chinese manufacturing data, with miners pacing the advance but housebuilders under the cosh after a profit warning from Persimmon. The FTSE 100 was up 0.9% at 7,945.23.
Data released earlier in China set the positive tone, as it showed factory sector activity ramped up more quickly than expected in February. The purchasing managers' index from private sector survey compiler Caixin rose to 51.6 in February from 49.2 the month before, beating consensus expectations of 51.3.
Meanwhile, the official manufacturing PMI jumped to 52.6 from 50.1, coming in ahead of consensus expectations for a reading of 50.7.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "March winds of hope are blowing through markets that China's reopening will offset weakness in other countries which are beset with stubborn inflation and a worsening cost of living crisis."
On home shores, meanwhile, a survey confirmed the downturn in the UK's manufacturing sector abated somewhat in February.
S&P Global's factory sector purchasing managers' index improved from a reading of 47.0 for January to 49.3 in February. That was also slightly better than a preliminary reading of 49.2.
Elsewhere, the latest survey from mortgage lender Nationwide showed that house prices fell by 1.1% year-on-year in February, the first annual decline since June 2020.
The latest BRC-NielsenIQ Shop Price Index showed that shop price inflation hit a fresh high in February as the cost of food continued to soar. Annual inflation was a record 8.4% compared to 8% in January.
Within that, non-food inflation was 5.3%, up from 5.1% in January, while food surged to 14.5%, the highest inflation rate in the food category on record. In January, it was 13.8%.
In equity markets, miners were among the top performers after the Chinese data, with Rio, Antofagasta, Anglo and Glencore all up sharply.
Weir was the standout gainer on the FTSE 100, however, after the engineering group posted a rise in annual profits on the back of a booming mining industry.
Aston Martin surged as it reported a sharp jump in full-year revenues amid increasing output and record total average selling prices.
Dettol and Nurofen maker Reckitt Benckiser gained after saying it swung to a full-year profit as it benefited from higher prices.
On the downside, housebuilders slid after a profit warning from Persimmon, which said it was hit by a spike in mortgage rates. The company said completions would likely be down "markedly" in the current year, which would hit both margin and profits. Persimmon tumbled 9%, while Taylor Wimpey, Barratt, Berkeley, Redrow and Bellway all fell.
Russ Mould, investment director at AJ Bell, said: "Welcome to a new era of chaos for the housebuilders. Falling property prices and rising costs means profits are being squeezed and that will cause earnings in the sector to slump.
"Persimmon has already refined its dividend policy in preparation for a housing market downturn and now it provides a crystal-clear message that margins are set to fall which will lead to a decline in profits.
"The company is preparing for the worst and accepts that 2023 will go down in history as a bad year."
The sector was also hit by the Nationwide survey.
Market Movers
FTSE 100 (UKX) 7,945.23 0.88% FTSE 250 (MCX) 19,989.54 0.43% techMARK (TASX) 4,646.38 0.88%
FTSE 100 - Risers
Weir Group (WEIR) 2,054.00p 8.16% Rio Tinto (RIO) 5,978.00p 4.66% Antofagasta (ANTO) 1,634.00p 4.08% Anglo American (AAL) 2,995.00p 3.83% Glencore (GLEN) 511.50p 3.26% Melrose Industries (MRO) 154.10p 2.84% Mondi (MNDI) 1,431.50p 2.51% Reckitt Benckiser Group (RKT) 5,906.00p 2.50% Smurfit Kappa Group (CDI) (SKG) 3,170.00p 2.49% Endeavour Mining (EDV) 1,739.00p 2.47%
FTSE 100 - Fallers
Persimmon (PSN) 1,322.50p -8.95% Taylor Wimpey (TW.) 119.35p -3.12% Barratt Developments (BDEV) 455.10p -2.98% Unite Group (UTG) 963.00p -2.03% United Utilities Group (UU.) 1,005.00p -1.28% Severn Trent (SVT) 2,716.00p -1.27% Berkeley Group Holdings (The) (BKG) 4,144.00p -1.24% National Grid (NG.) 1,035.50p -1.19% Ocado Group (OCDO) 542.80p -1.09% Land Securities Group (LAND) 681.40p -0.93%
FTSE 250 - Risers
Aston Martin Lagonda Global Holdings (AML) 224.80p 11.79% Fidelity China Special Situations (FCSS) 266.00p 5.35% Man Group (EMG) 276.10p 3.95% Serco Group (SRP) 162.10p 3.91% Oxford Instruments (OXIG) 2,580.00p 3.61% BlackRock World Mining Trust (BRWM) 719.00p 3.01% Pagegroup (PAGE) 458.60p 2.64% RHI Magnesita N.V. (DI) (RHIM) 2,652.00p 2.63% Telecom Plus (TEP) 1,806.00p 2.61% FDM Group (Holdings) (FDM) 845.00p 2.42%
FTSE 250 - Fallers
Vistry Group (VTY) 795.50p -2.93% Tullow Oil (TLW) 34.00p -2.80% Bellway (BWY) 2,157.00p -2.71% BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 150.00p -2.47% Shaftesbury (SHB) 408.80p -2.29% Capital & Counties Properties (CAPC) 123.60p -2.22% HICL Infrastructure (HICL) 156.00p -2.13% UK Commercial Property Reit Limited (UKCM) 55.60p -2.11% Redrow (RDW) 499.20p -2.02% Crest Nicholson Holdings (CRST) 239.60p -1.88%
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.