FTSE 100 movers: StanChart slumps on Barclays downgrade; Berkeley builds gains

London’s FTSE 100 index was down 0.4% to 6,852.27 in afternoon trade.

Standard Chartered was the standout loser as Barclays downgraded the stock to ‘underweight’ from ‘equalweight’, saying its valuation is overshooting its earnings power.

Barclays said management actions have stabilised the business with revenues appearing to have bottomed out and provisions now relatively steady at still elevated levels but significantly better than 2015.

“There has also been early progress on restructuring although this is likely to be a lengthy process with the initial target of an 8% return on equity by 2018 now pushed back.

“While we see the macro outlook as relatively supportive and expect earnings to continue improving, we believe that the valuation has now significantly disconnected from the medium-term earnings potential of the business.”

On the upside, Berkeley Group racked up healthy gains as the housebuilder and property developer said the market had returned to pre-Brexit levels in August following a hiatus either side of the EU referendum.

In an interim statement for the period from 1 May to the end of August, Berkeley said it entered 2016/17 with record cash due on forward sales of £3.25bn and future estimated land bank gross margin of £6.15bn.

Peers Persimmon and Barratt Developments gained on the back of Berkeley’s results.

EasyJet flew higher after it said traffic in August rose 6.4% to 7.51m passengers and the load factor – which gauges how full the planes were – nudged up to 94.9% from 94.4%.

On a rolling 12-month basis, traffic was up 6.8% to 72.79m, while the load factor ticked up to 91.8% from 91.4%.

British Airways and Iberia parent International Consolidated Airlines Group was also flying higher a day after reporting a jump in August traffic but a slip in the load factor.

The airline said on Monday that group traffic as measured in revenue passenger kilometres rose 7.9% in August from the same month last year to 24.48m passengers. Year-to-date, traffic was up 18.9% to 67.89m.

Risers

Berkeley Group Holdings (The) (BKG) 2,779.00p 3.31%
International Consolidated Airlines Group SA (CDI) (IAG) 400.60p 2.12%
easyJet (EZJ) 1,154.00p 2.03%
Mondi (MNDI) 1,588.00p 1.86%
Anglo American (AAL) 827.00p 1.60%
Persimmon (PSN) 1,863.00p 1.36%
Fresnillo (FRES) 1,693.00p 1.20%
Barratt Developments (BDEV) 504.00p 1.12%
Glencore (GLEN) 183.25p 1.08%
Mediclinic International (MDC) 1,040.00p 1.07%

Fallers

Standard Chartered (STAN) 646.70p -1.79%
Carnival (CCL) 3,447.00p -1.57%
BP (BP.) 428.70p -1.40%
Provident Financial (PFG) 2,988.00p -1.32%
Royal Dutch Shell 'B' (RDSB) 1,947.50p -1.27%
Standard Life (SL.) 364.00p -1.09%
Royal Dutch Shell 'A' (RDSA) 1,871.00p -1.03%
Compass Group (CPG) 1,460.00p -0.95%
Unilever (ULVR) 3,618.00p -0.86%
3i Group (III) 635.00p -0.86%