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(Sharecast News) - London's FTSE 100 was down 0.1% at 10,829.66 in afternoon trade on Wednesday.
Tesco slumped as Shore Capital downgraded the stock to 'hold' from 'buy' and suggested investors pause for breath. The broker, which cut its price target to 480p from 525p, said Tesco has done all that it could have asked from the business in recent years.
"An outstanding management team has executed retail delivery with excellent consistency and strong capital discipline has driven sustained cash generation, making for attractive total shareholder returns," it said.
"Such a backdrop has been rewarded with an equity rating that we deem to be fair (circa 15x). Whilst so, we see a UK grocery retail scene where summer 2026 volume is quite shallow, cost recovery is not easy, the competitive intensity is a little higher and Tesco is facing into the headwind of multi-year share gains."
As a result, ShoreCap said that while it remains comfortable with guidance, as H1 FY27F comes to an end, it feels it sensible to pause for breath.
On the upside, precious metals miner Fresnillo was the standout gainer on the index as gold prices rose.
Russ Mould, investment director at AJ Bell, said: "Endeavour Mining and Fresnillo both sit near the top of the FTSE 100 daily leaderboard as gold goes back above $4,400 an ounce, and they are not the only diggers on the rise. The leading tracker funds that follow baskets of gold mining shares are also starting to shine once more.
"Following the sharp pullback in gold and silver in the first half of the year, this stealthy move is easy to miss but it is a trend to note, amid ongoing worries about Western government debts and rising bond yields, even if markets still seem more interested in all matters related to artificial intelligence than anything else.
"Gold in particular seems to be kicking on again."
Chilean copper miner Antofagasta was also on the rise, along with housebuilders Barratt and Persimmon.
FTSE 100 - Risers
Fresnillo (FRES) 3,056.00p 3.60%
Admiral Group (ADM) 3,846.00p 3.38%
Barratt Redrow (BTRW) 325.80p 2.28%
3i Group (III) 2,803.00p 2.07%
Anglo American (AAL) 4,109.00p 2.06%
Halma (HLMA) 3,790.00p 1.94%
Antofagasta (ANTO) 4,104.00p 1.81%
Rolls-Royce Holdings (RR.) 1,556.40p 1.60%
Persimmon (PSN) 1,181.50p 1.59%
Melrose Industries (MRO) 495.20p 1.56%
FTSE 100 - Fallers
Marks & Spencer Group (MKS) 387.10p -3.56%
Burberry Group (BRBY) 1,132.50p -3.12%
Tesco (TSCO) 446.30p -3.08%
Relx plc (REL) 2,547.00p -2.11%
Sainsbury (J) (SBRY) 337.20p -2.06%
BP (BP.) 525.80p -1.90%
IG Group Holdings (IGG) 1,368.00p -1.65%
Diageo (DGE) 1,735.00p -1.53%
Next (NXT) 15,330.00p -1.51%
GSK (GSK) 1,868.50p -1.42%
