FTSE 100 movers: Miners shine but REITs slump on Brexit-fuelled downgrade

London’s FTSE 100 was down 0.8% to 6,527.02 in afternoon trading as investors continued to mull over the implications of Brexit.

Heavily-weighted mining stocks were the standout gainers on Monday as metals prices advanced, with copper at a fresh two-month high as investors bet on further monetary easing from central banks.

Silver miner Fresnillo racked up particularly impressive gains as silver prices broke through $21 an ounce. The company was also boosted by confirmation that construction of the San Julián project, phase 1, completed on time and on budget.

The miner confirmed its guidance of 775-790 koz of gold and 49-51 moz of silver for 2016, citing higher than expected volumes produced at Saucito compensating for the shortfall production at San Julián.

UK real estate investment trusts were the biggest fallers after Liberum downgraded its ratings on several big names. The brokerage cut British Land, Land Securities and Intu Properties to ‘sell’ from ‘hold’, and Hammerson to ‘hold’ from ‘buy.’

It pointed to greater occupier uncertainty in London City offices and retail following the UK’s decision to leave the European Union.

“Irrespective of economic stabilisers and low interest rates fuelling appreciation in asset values, the uncertainty of Brexit inevitably increases occupier risk,” said the brokerage, adding that risks from Brexit were greater than the potential support from a weak sterling.

Although it’s still too early to gauge the full extent to which UK real estate values will correct due to investment market uncertainty and the risk of weakness in occupational demand, using initial GDP revisions and history as a guide, Liberum models a correction of around 5% in values. This has led the brokerage to downgrade real estate net asset value estimates by around 10%.

Marks & Spencer was under the cosh as Deutsche Bank downgraded it to ‘hold’ from ‘buy’.

It noted M&S trades on the same price-to-earnings valuation as Next but is more operationally and financially leveraged, dollar pressures may impact its gross margin recovery plans, and in the last downturn its food gross margins were reset.

“We think the business has good medium term recovery potential but in a Brexit environment prefer Next’s solid track record.”

Risers

Fresnillo (FRES) 1,903.00p 8.12%
Randgold Resources Ltd. (RRS) 9,165.00p 4.44%
Glencore (GLEN) 162.60p 4.26%
Antofagasta (ANTO) 484.50p 3.17%
BHP Billiton (BLT) 963.70p 2.52%
Anglo American (AAL) 776.70p 2.47%
SSE (SSE) 1,593.00p 1.46%
Rio Tinto (RIO) 2,375.50p 1.30%
Intertek Group (ITRK) 3,528.00p 0.83%
Shire Plc (SHP) 4,709.00p 0.79%

Fallers

British Land Company (BLND) 560.50p -7.89%
Land Securities Group (LAND) 974.00p -6.26%
Persimmon (PSN) 1,453.00p -5.65%
Berkeley Group Holdings (The) (BKG) 2,506.00p -5.58%
Taylor Wimpey (TW.) 131.60p -5.53%
Barratt Developments (BDEV) 394.40p -4.96%
Marks & Spencer Group (MKS) 304.80p -4.78%
Hammerson (HMSO) 510.50p -4.13%
Standard Life (SL.) 287.80p -4.07%
Intu Properties (INTU) 280.00p -3.95%