FTSE 100 movers: Next update buoys retailers; Burberry hit by China fears
London’s FTSE 100 was up 0.2% at 6,744.06 in afternoon trade on Thursday afternoon, reversing earlier losses as retailers got a lift from Next’s latest update.
Next was the standout gainer after trimming its full-year profit guidance to £723m from £727m but posting a 1.5% jump in sales over the key Christmas period. The update provided a boost to the sector, with Primark owner AB Foods, B&Q owner Kingfisher and Marks & Spencer all trading higher.
Elsewhere, housebuilders were among the risers, with Taylor Wimpey, Barratt Developments and Persimmon all higher, even as the latest data revealed that activity in the UK construction sector eased to a three-month low in December.
The Markit/CIPS UK construction total activity index fell to 52.8 from 53.4 in November, remaining above the 50.0 level that separates contraction from expansion for the ninth consecutive month but a touch below expectations for a reading of 52.9.
Although strong demand among first-time buyers meant that housebuilding was the fastest growing category of construction output during 2018, UK construction firms signalled a slowdown in housing and commercial activity growth in December.
Luxury fashion brand Burberry was under the cosh amid worries about a slowdown in China, which is a big consumer of its products. The concerns came on the back of a shock warning from tech giant Apple late on Wednesday, which slashed its revenue guidance for the first quarter as it highlighted weaker sales in China.
FTSE 100 - Risers
Next (NXT) 4,428.00p 6.01%
Tesco (TSCO) 198.55p 3.65%
Associated British Foods (ABF) 2,120.00p 2.32%
Taylor Wimpey (TW.) 139.20p 1.72%
Morrison (Wm) Supermarkets (MRW) 215.35p 1.68%
Kingfisher (KGF) 212.70p 1.67%
Barratt Developments (BDEV) 469.58p 1.60%
Marks & Spencer Group (MKS) 251.90p 1.57%
Persimmon (PSN) 1,968.00p 1.42%
Centrica (CNA) 137.85p 1.36%
FTSE 100 - Fallers
Burberry Group (BRBY) 1,627.00p -5.71%
Evraz (EVR) 455.48p -4.95%
Hiscox Limited (DI) (HSX) 1,554.00p -3.60%
Intertek Group (ITRK) 4,674.00p -2.97%
Sage Group (SGE) 584.20p -2.54%
NMC Health (NMC) 2,638.00p -2.44%
Paddy Power Betfair (PPB) 6,425.00p -2.36%
Standard Chartered (STAN) 592.50p -2.29%
Scottish Mortgage Inv Trust (SMT) 449.25p -2.09%
Halma (HLMA) 1,326.00p -2.00%