FTSE 100 movers: Precious metals up as Brexit fears continue

The FTSE 100 was in the red in Monday afternoon trading, as the pound declined on Brexit fears after evidence pointed towards growing momentum behind the 'Leave' campaign ahead of next week’s referendum.

Inmarsat was making the most of its last week in the FTSE 100, flying high on Monday after it unveiled a partnership with specialist broadband firm SpeedCast.

The stock - which will be relegated from the benchmark index at the end of this week - has agreed to use its Fleet Xpress service for SpeedCast’s maritime business, seeing its rolled out to 2,000 vessels.

“This is a very important strategic alliance for Inmarsat, [which] deepens our valuable partnership and ... also significantly strengthens Inmarsat’s position in the global maritime business,” said chief executive Rupert Pearce.

Also among the risers were Randgold and Fresnillo, offering the market a repeat performance of last Friday when they also bucked a falling trend.

Investors have been rushing to safe havens across the globe in recent days as Brexit and Fed risks loom, with both the Japanese yen and government bonds flying high.

Gold and silver, which both Randgold and Fresnillo produce, are also sought after as a safe haven investment.

“With event-risk related to next week’s Fed policy update and a too-close-to-call UK referendum on EU membership the week after, investors are continuing to temper their appetite for risk assets,” said Accendo Markets head of research Mike van Dulken on Friday.

On the downside, banking stocks were suffering from the swirling Brexit fears, with Lloyds Banking Group and Barclays being the retail banks among to top losers, joining other big City names Standard Chartered, Hargreaves Lansdown and Standard Life.

Analysts from Berenberg have said that if the UK votes for Brexit, house prices could fall by 20% to 30%, with London and the south east the most exposed to such risks.

Subscription television company Sky was also down as it continued reeling from the news on Friday that its German arm paid 80% more to continue screening top German football matches.

Sky Deutschland confirmed last week that it paid €3.5bn to secure the rights for Bundesliga matches from next year through to 2020/21, which at €876m per year is 80% higher than its current deal of €486, per annum.

“This further brings into question the long term profitability of Sky, as we believe competition dynamics will undermine their ability to fully pass through these cost increases to customers,” noted Liberum after the announcement.

But the broadcaster also had its overweight rating reiterated by Barclays on Monday.

The researchers at Barclays put a 1,100p price target on the stock, suggesting a potential upside of 18.85%.

Finally, education publisher Pearson was also under pressure after finding itself on the receiving end of a ‘sell’ rating from Deutsche Bank.

The bank gave Pearson a price target of 770p, indicating a potential downside of 3.39%.

FTSE 100 - Risers

Randgold Resources Ltd. (RRS) 6,760.00p 2.04%
Inmarsat (ISAT) 717.50p 1.99%
Fresnillo (FRES) 1,227.00p 1.07%
Royal Bank of Scotland Group (RBS) 215.80p 0.89%
Mediclinic International (MDC) 888.50p 0.68%
GlaxoSmithKline (GSK) 1,422.50p 0.64%
Pearson (PSON) 801.50p 0.56%
Severn Trent (SVT) 2,243.00p 0.13%
Smith & Nephew (SN.) 1,140.00p 0.09%
SABMiller (SAB) 4,290.00p 0.01%

FTSE 100 - Fallers

Lloyds Banking Group (LLOY) 64.55p -3.73%
Barclays (BARC) 163.95p -3.22%
Standard Chartered (STAN) 500.40p -3.00%
Hargreaves Lansdown (HL.) 1,232.00p -2.84%
Schroders (SDR) 2,480.00p -2.82%
Sky (SKY) 899.50p -2.81%
3i Group (III) 541.00p -2.43%
St James's Place (STJ) 841.50p -2.38%
Sainsbury (J) (SBRY) 236.20p -2.32%
Capita (CPI) 1,004.00p -2.24%