FTSE 100 movers: Miners gain but housebuilders slump

London’s FTSE 100 was up 0.8% to 7,101.36 in afternoon trade.

Mining stocks gained ground as base and precious metals prices advanced, with BHP Billiton, Anglo American and Fresnillo all on the front foot.

Rolls-Royce shares also rallied after JPMorgan Cazenove upgraded its price target on the stock to 890p from 835p as it took a look at the UK aerospace and defence sector.

The bank said it was updating its earnings per share estimates, mostly for the recent strengthening of the dollar versus the pound from $1.30/£1 to $1.25/£1.

It said BAE Systems and Ultra Electronics remain its top picks in defence, while Rolls-Royce is the big FX winner.

“In terms of FX transaction, every 1 US cent move versus sterling impacts RR’s civil aerospace earnings before interest, tax and amortisation by around £20m today, although the impact increases over time as RR's civil aerospace business grows,” JPM said.

EasyJet flew lower again on Monday as Societe Generale downgraded the stock to ‘sell’ from ‘hold’ and slashed the price target to 820p from 1,150p following the airline’s profit warning last week, pointing to a double whammy of a soft demand environment and FX headwinds.

The bank said it reckons the issues weighing on the company in full-year 2016 will persist or intensify. It noted the pound is now trading at a 30-year low versus the dollar, which will gradually inflate EZJ’s fuel bill, with hedging contracts expiring.

Royal Bank of Scotland was also weaker amid reports of leaked documents showing it pushed smaller business customers to default on their debts so it could then buy the assets up on the cheap. RBS denied the reports and told the BBC a review had found no evidence that it had deliberately caused businesses to fail.

Domestic stocks took a hit amid ongoing worries about a hard Brexit, with housebuilders the standout losers. Persimmon, Taylor Wimpey and Barratt Developments were all weaker.

Risers

BHP Billiton (BLT) 1,259.00p 2.15%
Royal Dutch Shell 'B' (RDSB) 2,213.00p 2.10%
Anglo American (AAL) 1,041.00p 1.96%
Coca-Cola HBC AG (CDI) (CCH) 1,833.00p 1.95%
Fresnillo (FRES) 1,697.00p 1.92%
Shire Plc (SHP) 5,295.00p 1.91%
Royal Dutch Shell 'A' (RDSA) 2,107.50p 1.89%
Rolls-Royce Holdings (RR.) 789.00p 1.74%
CRH (CRH) 2,705.00p 1.69%
Ashtead Group (AHT) 1,342.00p 1.51%

Fallers

Persimmon (PSN) 1,697.00p -3.19%
Travis Perkins (TPK) 1,424.00p -2.93%
Taylor Wimpey (TW.) 144.10p -2.44%
TUI AG Reg Shs (DI) (TUI) 1,088.00p -2.42%
Barratt Developments (BDEV) 469.20p -2.19%
St James's Place (STJ) 943.50p -2.02%
easyJet (EZJ) 878.00p -2.01%
Royal Bank of Scotland Group (RBS) 178.60p -1.81%
Legal & General Group (LGEN) 217.90p -1.58%
Barclays (BARC) 171.40p -1.27%