Sector movers: Resource stocks head higher as housebuilders tumble

Resource stocks headed higher on Friday, while housebuilders took a hit ending the week in negative territory.

The FTSE 100 closed 0.86% or 50.70 points lower at 5848.06, while the FTSE 250 ended down 0.53% or 84.45 points lower at 16,002.28 on mixed US data.

US employers added 151,000 jobs, compared with consensus expectations for a 190,000 gain and a downwardly-revised 262,000 the previous month, according to the Labor Department’s non-farm payrolls data.

The unemployment rate fell to 4.9% from 5% in December, nearing an eight-year low. Economists had expected the rate to remain unchanged at 5%. Average hourly earnings rose 2.5% year-on-year in January, beating forecasts for a 2.2% increase.

Meanwhile, the US trade deficit expanded in December to a seasonally adjusted $43.36bn from the previous month’s $42.23bn as exports fell 0.3% and imports increased 0.3%. Analysts had expected a deficit of $43.20bn.

Elsewhere, German factory orders fell 0.7% in December compared to a month earlier, which was a steeper decline than the 0.5% expected by economists. At 1743 GMT, the Brent front-month oil futures contract was down 0.23% or eight cents to $34.38 per barrel, while WTI was down 0.88% or 28 cents to $31.44 per barrel.

Headline base metal futures were largely in negative territory on the London Metal Exchange at 1635 GMT. Three-month futures contracts of copper (down 1.4%), nickel (down 2.9%), lead (down 2.3%) and zinc (down 2.4%) headed lower.

Precious metals saw the safe haven influenced uptick of the week fizzle out. On the COMEX, the front-month gold futures contract was down 0.03% or 30 cents to $1,157.30 an ounce, while spot gold was broadly flat at $1,157.33 an ounce. COMEX silver fell 0.57% or eight cents to $14.77 an ounce, while spot platinum fell 0.54% or $4.95 to $903.75 an ounce.

Nonetheless, resource stocks rallied. Anglo American (10.68%) and Antofagasta (3.72%) led the FTSE 100 gainers, while Evraz (up 6.02%) and Vedanta Resources (up 5.67%) were the FTSE 250 resource sector stocks to register the higher gains.

Among the aforementioned companies, Anglo American rallied for a second day after Blackrock increased its stake in the miner.

However, housebuilders tumbled lower with Berkeley Group (down 4.99%) and Persimmon (down 3.63%). Retailing company Kingfisher and fashion label Burberry rose as news came that January sales lured bargain hunters back to the High Street in January, according to figures released by accountancy and business advisory firm BDO.

Finally, Just Eat advanced as it ordered four online takeaway food businesses in Spain, Italy, Brazil and Mexico for a total of €125m (£94.7m). Ocado was up after a relatively positive note from Exane BNP Paribas. The investment bank retained its rating at ‘neutral’ but cut its target price to 275p.