FTSE 250 movers: Banks and housebuilders sinking on Brexit

The FTSE 250 was well below the waterline in afternoon trading on Monday, with the market largely ignoring attempts to reassure the market by Chancellor George Osborne after last week's UK vote to leave the European Union.

Miners were some of the biggest risers, with Centamin, Acacia Mining and Polymetal International all featuring at the top of the index.

It came after strategists at Goldman Sachs said Europe-based miners are in a position to do well in an environment of sinking bond yields, which are pushing investors towards equities with quality dividends.

Miners also have low exposure to Europe, Goldman said, with revenues frequently denominated in US dollars having a positive effect on financial performance in the wake of Brexit.

Sentiment around the mining industry was also perked up early in the session after BHP Billiton raised its exploration budget for the year - a sign the industry may be recovering.

“We are investing at a time when most in our sector continue to reduce discretionary spend,” said the company’s head of geoscience Laura Tyler.

The industry has struggled in recent months to find ways to continue hunting resources while simultaneously cutting costs.

On the downside were banks, with OneSavings Bank, Shawbrook Group and Virgin Money Holdings echoing the performance of their larger FTSE 100 cousins throughout the session.

The entire sector was under pressure over the question of ‘passporting’, or the rights of EU passport holders to remain in Britain after last week’s shock Brexit vote.

Around 11% of workers in the City of London hail from other EU states, with their future in the United Kingdom anything but certain despite efforts from politicians and London Mayor Sadiq Khan to reassure them.

The other side of the issue remained the ‘passporting’ of services, with banks and markets asking whether they will be able to provide services across European borders from the City of London in the case of Brexit.

Housebuilders were also heading south, with Bellway, Crest Nicholson and McCarthy & Stone all mustered among the bottom of the index, again echoing movements on the FTSE 100.

Top economists have warned that a recession is now on the cards for the UK, which could lead to unemployment, a drastic drop in consumer confidence, all leading to seriously reduced demand for housing.

Chancellor George Osborne also warned in May that Brexit could cause house prices fall between 10% and 18% - a damaging situation for housebuilders.

FTSE 250 - Risers

Acacia Mining (ACA) 437.80p 9.45%
Centamin (DI) (CEY) 130.60p 8.56%
Polymetal International (POLY) 966.00p 4.89%
JPMorgan Emerging Markets Inv Trust (JMG) 604.50p 1.94%
Genesis Emerging Markets Fund Ltd Ptg NPV (GSS) 516.00p 1.88%
Personal Assets Trust (PNL) 37,760.00p 1.23%
Templeton Emerging Markets Inv Trust (TEM) 478.60p 1.18%
John Laing Infrastructure Fund Ltd (JLIF) 125.50p 0.56%
International Public Partnerships Ltd. (INPP) 149.00p 0.27%
Indivior (INDV) 221.60p 0.09%

FTSE 250 - Fallers

OneSavings Bank (OSB) 193.30p -26.61%
Shawbrook Group (SHAW) 171.40p -26.44%
Virgin Money Holdings (UK) (VM.) 210.40p -23.57%
Marshalls (MSLH) 202.40p -20.06%
Bellway (BWY) 1,656.00p -19.81%
Crest Nicholson Holdings (CRST) 345.40p -19.67%
Balfour Beatty (BBY) 189.00p -18.78%
Morgan Advanced Materials (MGAM) 208.70p -17.74%
Redrow (RDW) 284.20p -17.62%
Aldermore Group (ALD) 115.20p -17.60%