FTSE 100 movers: Property stocks jump as inflation eases, Pearson falls
Property stocks were the best performers of the day after data showed a surprise drop in UK inflation. With a surge in mortgage rates and sluggish demand leading to falling profits for housebuilders and valuation declines at real estate groups over recent months, a decline in inflation has raised hopes we may be nearing the trough in the cycle.
Taylor Wimpey, Land Securities, Barratt Developments, United Group and SEGRO were all rising strongly ahead of a Bank of England meeting on Thursday. While the central bank is widely expected to raise rates another 25 basis points, it is hope this could be last hike for now.
Shares in educational publisher Pearson fell after the company announced the retirement of its boss of three years, Andy Bird, who will be replaced by Microsoft executive Omar Abbosh in early 2024. The stock, which dropped as much as 5% earlier on, was down just 1% in afternoon trade.
Global investment manager M&G was in demand after posting stronger-than-expected interim profits. Adjusted operating profits came in at £390m (consensus: £284m) as the firm said it was on track to meet its 2024 operating capital generation target of £2.5bn.
Advertising giant WPP was the worst performer of the session, extending its losses over the past three sessions to nearly 5% on negative readacross from sector peer S4 Capital which tanked on Monday following a profit warning. S4 Capital, a competitor to WPP which is run by its former boss Martin Sorrell, said like-for-like revenues were likely to fall this year after slower-than-expected trading over the summer and weak client activity levels.
Oil heavyweights BP and Shell declined as crude prices pulled back after recent gains. Brent was down 0.3% at $94.03 a barrel after surpassing the $95 level on Tuesday.
FTSE 100 - Risers
Taylor Wimpey (TW.) 121.70p 5.55%
Barratt Developments (BDEV) 464.70p 4.54%
Croda International (CRDA) 5,056.00p 4.25%
Land Securities Group (LAND) 607.40p 4.22%
Unite Group (UTG) 940.50p 4.21%
NATWEST GROUP (NWG) 241.40p 4.01%
SEGRO (SGRO) 749.80p 3.94%
Kingfisher (KGF) 214.70p 3.82%
BT Group (BT.A) 120.75p 3.78%
International Consolidated Airlines Group SA (CDI) (IAG) 156.95p 3.77%
FTSE 100 - Fallers
WPP (WPP) 734.40p -4.00%
Smurfit Kappa Group (CDI) (SKG) 2,844.00p -1.93%
Melrose Industries (MRO) 486.80p -1.64%
BAE Systems (BA.) 1,043.50p -1.46%
3i Group (III) 2,060.00p -1.20%
Burberry Group (BRBY) 2,041.00p -1.16%
Tesco (TSCO) 270.60p -0.92%
Centrica (CNA) 170.95p -0.90%
Pearson (PSON) 877.40p -0.75%
Shell (SHEL) 2,598.00p -0.57%