FTSE 100 movers: Land Securities, banks in the red

(Sharecast News) - London's FTSE 100 was down 1.2% at 9,686.79 in afternoon trade on Friday. Land Securities was the biggest loser on the index as it lifted its full-year earnings guidance but reported drop in half-year pretax profit to £98m from £243m.

Third Bridge analyst Max Harper said this was short of the £274.2m expected and mainly reflects capital recycling of low-return assets and losses on disposals.

He said "weaker-than-expected profit should be partly balanced by solid rental growth and some guidance upgrades".

Rental income was "decent", Harper said, rising 5.2%, while occupancy ticked up to 97.7%, close to a ten-year high.

"The outlook looks a little brighter," said Harper. "Landsec has lifted its rental income growth target to 4 to 5% by 2026, nudged its 2030 EPS goal up to around circa 62p, and now expects net debt to EBITDA to fall below 7x within two years, versus its previous target of 8x.

"Our experts suggest Landsec's push toward a higher-quality mix of retail, residential and top-tier offices will be expensive, but should leave the business better placed for the long run versus similar landlords such as British Land."

NatWest, Barclays and Lloyds all slumped after gilt yields rose on reports that Chancellor Rachel Reeves will ditch plans for an income tax hike in the upcoming Budget.

Dan Coatsworth, head of investment at AJ Bell, said: "Higher gilt yields can drive up fixed-term mortgage costs because they are used as a benchmark by lenders when pricing long-term products.

"The situation is bad news for mortgage lenders as pricier home loans could make it more challenging for certain people to get on the housing ladder. That explains the sell-off in banking shares."

FTSE 100 - Risers

DCC (CDI) (DCC) 5,015.00p 1.56% Berkeley Group Holdings (The) (BKG) 3,992.00p 0.71% Reckitt Benckiser Group (RKT) 5,858.00p 0.38% Hikma Pharmaceuticals (HIK) 1,600.00p 0.31% AstraZeneca (AZN) 13,532.00p 0.28% Burberry Group (BRBY) 1,229.00p 0.08% RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 98.64p 0.00% Halma (HLMA) 3,380.00p -0.06% London Stock Exchange Group (LSEG) 8,778.00p -0.09% Weir Group (WEIR) 2,814.00p -0.14%

FTSE 100 - Fallers

Metlen Energy & Metals (MTLN) 42.58p -5.81% Entain (ENT) 692.80p -4.76% Smurfit Westrock (DI) (SWR) 2,575.00p -4.42% Land Securities Group (LAND) 624.00p -3.55% St James's Place (STJ) 1,294.00p -3.54% Kingfisher (KGF) 297.60p -3.38% NATWEST GROUP (NWG) 602.40p -3.34% Barclays (BARC) 414.00p -3.10% Lloyds Banking Group (LLOY) 91.24p -3.06% Flutter Entertainment (DI) (FLTR) 15,100.00p -2.83%