FTSE 100 movers: 3i rallies but banks and housebuilders slide again

London’s FTSE 100 index was up 0.2% to 6,373.43 in afternoon trading, back in the black after a shaky start as investors continued to mull the implications of Brexit.

Private equity firm 3i was the standout gainer after saying it had no plans to dispose of its investment in Dutch discount retailer Action despite a number of approaches.

“3i is actively engaged in the further development of Action and is not intending to sell its investment or organise a flotation of Action in the near future,” the company said.

Heavily-weighted miners also racked up healthy gains as metals prices advanced, with Antofagasta, Anglo American, Randgold Resources and Glencore all sharply higher.

Shire was on the front foot. Although a drug being tested by the company failed to a treat a form of infant blindness as hope, it instead demonstrated positive effects on severe complications related to lung and brain damage.

The drug, currently called SHP607, helped reduce the occurrence of severe bronchopulmonary dysplasia (BPD) and severe intraventricular haemorrhage.

Banks and housebuilders were under the cosh again amid worries about Brexit.

Builders’ merchant Travis Perkins was also in the red after Berenberg downgraded the stock to ‘hold’ from ‘buy’ and slashed the price target to 1,540p from 2,300p pointing to effect of Brexit uncertainty on the housing market.

“While we still believe that Travis has a sound long-term strategy, we are unable to maintain our Buy rating in light of the risks to UK construction activity resulting from the Brexit vote,” the bank said.

It does not expect to see a scenario similar to 2008-2009 but reckoned a moderate contraction in activity was likely, meaning the group will be unable to achieve its mid-term growth ambitions.

“We believe that the recovery in residential construction output that started in late 2009 is likely to be at an end after the vote by the UK to leave the E,” said Berenberg, pointing out that the market was already slowing ahead of the referendum.

Risers

3i Group (III) 536.00p 6.24%
Antofagasta (ANTO) 469.20p 5.91%
Anglo American (AAL) 724.70p 3.99%
Randgold Resources Ltd. (RRS) 8,330.00p 3.29%
Glencore (GLEN) 151.35p 3.17%
SSE (SSE) 1,518.00p 3.12%
Schroders (SDR) 2,313.00p 2.62%
Informa (INF) 709.00p 2.46%
International Consolidated Airlines Group SA (CDI) (IAG) 367.90p 2.39%
Shire Plc (SHP) 4,576.00p 2.33%

Fallers

Royal Bank of Scotland Group (RBS) 171.80p -4.66%
Royal Mail (RMG) 488.30p -3.69%
Travis Perkins (TPK) 1,442.00p -3.67%
Taylor Wimpey (TW.) 128.40p -3.39%
Lloyds Banking Group (LLOY) 53.69p -3.30%
Barratt Developments (BDEV) 395.80p -3.16%
Persimmon (PSN) 1,402.00p -2.91%
Berkeley Group Holdings (The) (BKG) 2,476.00p -2.90%
Dixons Carphone (DC.) 325.90p -2.83%
Provident Financial (PFG) 2,249.00p -2.64%