London midday: Stocks led higher by housebuilders
London stocks edged higher on Friday, led by a rally in housebuilders, as investors analysed Chinese trade data and looked ahead to the release of US retail sales figures.
At 1156 GMT, the FTSE 100 rose 0.30% to 7,314.55 points.
The index was topped by Barratt Developments, which saw its shares recover from the previous session when it reported a 6% drop in annual house sales following a sharp fall in business in London.
The housebuilder said it cut the price of some of its most expensive London homes by 10% to spur business.
“After a miserable day yesterday the bargain hunters have stepped in to rescue Barratt Developments, with the temptingly-low forward valuation and signs of healthy cash flow clearly providing an incentive,” said IG’s chief market analyst Chris Beauchamp.
Sector peers Taylor Wimpey and Persimmon were also in the black.
ITV was another riser after Goldman Sachs added the buy-rated stock to its Conviction List, saying its is one of the most likely M&A candidates in its coverage, as it took a look at the European media sector.
In contrast, mining shares were the worst performers, pulling back from gains on Thursday as metal prices fell. Fresnillo, Rio Tinto and Randgold Resources were in the red.
In economic data, the China trade surplus narrowed to $40.82bn in December from $44.61bn, surprising analysts who had expected a surplus of $47.55bn. Exports declined 6.1% on the year in December, compared to forecasts for a 3.8% decline and the previous month’s 0.1% increase. Imports rose 3.1% in December, more than the 3% increase expected and after a 6.7% gain in November.
“A strong end to the year for global manufacturing failed to prevent a decline in Chinese trade growth last month,” according to Capital Economics.
“Looking ahead, it’s hard to see conditions becoming much more favourable to Chinese trade than they already are. Further upside to economic activity, both in China and abroad, is probably now limited given declines in trend growth.”
On this side of the pond, the Bank of England said demand for bank lending among small and medium sized British firms continued to slump in the last three months of 2016 amid worries about Brexit.
However, demand for bank borrowing by large companies remained unchanged during the period, according to the Bank’s quarterly Credit Conditions Survey.
The attention now turns to US retail sales at 1330 GMT, which is expected to show a 0.7% rise in December. The University of Michigan’s consumer confidence index is also due at 1500 GMT along with data on business inventories.
Market Movers
FTSE 100 (UKX) 7,312.51 0.28%
FTSE 250 (MCX) 18,337.31 0.18%
techMARK (TASX) 3,412.43 0.33%
FTSE 100 - Risers
Barratt Developments (BDEV) 516.00p 3.61%
Kingfisher (KGF) 354.10p 2.88%
Merlin Entertainments (MERL) 483.30p 2.37%
Taylor Wimpey (TW.) 174.80p 2.16%
Whitbread (WTB) 4,118.00p 2.01%
Persimmon (PSN) 2,009.00p 1.98%
St James's Place (STJ) 1,079.00p 1.89%
ITV (ITV) 206.70p 1.82%
TUI AG Reg Shs (DI) (TUI) 1,142.00p 1.60%
Hikma Pharmaceuticals (HIK) 1,888.00p 1.56%
FTSE 100 - Fallers
Fresnillo (FRES) 1,387.00p -2.46%
Rolls-Royce Holdings (RR.) 664.00p -1.92%
Marks & Spencer Group (MKS) 340.60p -1.25%
Smurfit Kappa Group (SKG) 2,129.00p -1.11%
BAE Systems (BA.) 611.00p -1.05%
Compass Group (CPG) 1,453.00p -0.89%
Rio Tinto (RIO) 3,376.00p -0.84%
Hammerson (HMSO) 563.50p -0.62%
United Utilities Group (UU.) 890.50p -0.61%
Micro Focus International (MCRO) 2,135.00p -0.56%
FTSE 250 - Risers
SIG (SHI) 106.70p 13.75%
Grafton Group Units (GFTU) 581.00p 7.49%
International Personal Finance (IPF) 172.80p 5.49%
Mitchells & Butlers (MAB) 272.00p 4.53%
Daejan Holdings (DJAN) 6,190.00p 3.17%
Travis Perkins (TPK) 1,461.00p 2.74%
Ascential (ASCL) 289.50p 2.70%
Crest Nicholson Holdings (CRST) 515.50p 1.88%
Bellway (BWY) 2,623.00p 1.63%
Ladbrokes Coral Group (LCL) 120.90p 1.60%
FTSE 250 - Fallers
Dunelm Group (DNLM) 704.00p -5.12%
Pennon Group (PNN) 778.50p -3.77%
Ferrexpo (FXPO) 130.90p -3.04%
Euromoney Institutional Investor (ERM) 1,140.00p -2.98%
AO World (AO.) 158.40p -2.40%
Evraz (EVR) 223.10p -2.23%
Just Eat (JE.) 519.50p -1.98%
Kaz Minerals (KAZ) 422.60p -1.97%
Polymetal International (POLY) 919.00p -1.92%
Capital & Counties Properties (CAPC) 278.10p -1.59%