FTSE 100 movers: Housebuilders on the rise while BP slumps

Oil giant Royal Dutch Shell’s shares rose after its third quarter results improved from the second and beat forecasts. Earnings, excluding exceptional items, increased 18% to $2.8bn compared to the same quarter last year, above the forecast consensus of $1.7bn. The oil giant however remains uncertain about the oil price outlook.

Housebuilders Barratt Developments, Taylor Wimpey and Persimmon were boosted by a report that China’s second-biggest property developer is in talks to buy privately-owned UK housebuilder Cala in a deal that could be worth as much as £700m. According to Sky News, Evergrande has been in talks with Cala’s shareholders for several months. It was understood the two parties were still some away from a formal deal, but a source told Sky there were “serious and credible”. The move by Evergrande comes ahead of a government push to deliver one million new homes by 2020.

Mining company Antofagasta gained on the prospect of higher metal demand from the manufacturing industry’s biggest consumer of commodities China, according to analyst from CMC markets Jasper Lawler. The China Caixin manufacturing PMI rose more than expected to 51.2 in October from 50.1 in September.

Meanwhile, rival oil giant BP’s shares fell after its underlying third-quarter profits halved compared to last year. Although down 49% on last year due to lower oil prices, currency effects and one-off events hitting production levels, underlying replacement cost profits of $933m in the three months to the end of September were well ahead of the consensus forecast of $720m.

Morrison (Wm) Supermarkets’ shares fell after Jefferies downgraded the company to a 'hold' rating after the stock outperformed the FTSE 100 by more than 40% in the year to date.

Shares in biopharmaceutical company Shire fell after its third-quarter results and earnings were just shy of forecasts, while the drug developer did not raise guidance as some had hoped, due to higher than expected costs from June's acquisition of Baxalta.

Standard Chartered's shares slumped after the bank announced underlying profits before tax of $458m, although substantial restructuring charges reduced this to $153m at the reported level. “Standard Chartered is certainly in a healthier position than it was a year ago, but it’s also smaller, and is delivering pretty close to zero growth. Not what investors expect when investing in emerging markets,” said equity analyst at Hargreaves Lansdown Nicholas Hyett.

Intu Properties edged lower after the shopping centre group warned that the demise of BHS would hurt its short-term rental income, according to retailing analyst and consultant Nick Bubb.

Risers

Polymetal International (POLY) 939.50p 5.44%
Fresnillo (FRES) 1,716.00p 4.63%
Royal Dutch Shell 'B' (RDSB) 2,213.00p 4.63%
Royal Dutch Shell 'A' (RDSA) 2,128.00p 4.39%
Antofagasta (ANTO) 560.00p 3.13%
Barratt Developments (BDEV) 467.90p 3.13%
Dixons Carphone (DC.) 324.40p 3.08%
Taylor Wimpey (TW.) 145.90p 2.96%
Persimmon (PSN) 1,737.00p 2.54%
Travis Perkins (TPK) 1,365.00p 2.40%

Fallers

Standard Chartered (STAN) 676.80p -4.93%
BP (BP.) 467.90p -3.27%
Intertek Group (ITRK) 3,359.00p -1.73%
United Utilities Group (UU.) 926.00p -1.49%
Intu Properties (INTU) 271.40p -1.49%
Smith & Nephew (SN.) 1,166.00p -1.44%
Morrison (Wm) Supermarkets (MRW) 223.30p -1.41%
Ashtead Group (AHT) 1,260.00p -1.41%
Severn Trent (SVT) 2,297.00p -1.33%
Shire Plc (SHP) 4,591.50p -1.26%