FTSE 100 movers: Budget takes wealth managers, house builders higher

The FTSE 100 was higher in afternoon trading on Wednesday, as investors digested the Chancellor's lunchtime Budget statement.

Household Goods & Home Construction

11,324.30

15:45 15/11/24

-0.77%

-87.44

Pharmaceuticals & Biotechnology

19,259.77

15:45 15/11/24

-2.70%

-535.19

Wealth manager St James's Place led the risers, after Chancellor of the Exchequer George Osborne set out measures in the Budget to boost home ownership and retirement savings among Britons. "From April 2017, anyone under the age of 40 will be able to open a lifetime ISA and save up to £4,000 each year. For every £4 you save, the government will give you £1," Osborne told the House of Commons during his statement

Housebuilders were also on the rise after the Chancellor announced plans to lower stamp duty, and revealed savings held in the new lifetime ISA could be used towards a deposit on a mortgage. Both Taylor Wimpey and Barratt Developments were among the top risers. Osborne also green-lighted the next stage of development towards London's Crossrail 2 project, which a report last week suggested could lead to 200,000 new homes in and around the capital.

Tour operator TUI was heading downwards, after Citigroup downgraded its stock to 'sell' from 'neutral'. The bank still expected solid second-quarter earnings from the group, but slashed its price target to 885p from 1,250p. “Although TUI guides to at least 10% per annum underlying EBITA growth we think that this likely falls to around 6% pa after allowing for FX and the likely disposal of the fast growing Hotelbeds business,” Citi said.

Shares in Shire were also pressured downwards, as investors who had recently shunned Valeant Pharmaceuticals began to turn away from other makers of high-priced specialty drugs. "You saw the specialty pharma sector got particularly badly hit with Valeant and Shire ADS are trading down as well. So I suspect some of it is the follow on from the weak U.S. performance in that sector," Jefferies analyst Peter Welford told Bloomberg.

FTSE 100 - Risers

St James's Place (STJ) 938.00p 4.22%
Taylor Wimpey (TW.) 187.60p 3.42%
Hikma Pharmaceuticals (HIK) 1,778.00p 3.31%
Barratt Developments (BDEV) 573.00p 3.24%
Glencore (GLEN) 145.20p 3.09%
Royal Dutch Shell 'B' (RDSB) 1,709.50p 2.95%
Royal Dutch Shell 'A' (RDSA) 1,704.00p 2.81%
BP (BP.) 351.35p 2.73%
Persimmon (PSN) 2,080.00p 2.67%
Ashtead Group (AHT) 837.00p 2.57%