FTSE 250 movers: Challenger banks drop; gold stocks rally
London’s FTSE 250 index was down 7% to 16,124.88 in afternoon trade, underperforming the top-flight index after the UK voted to leave the European Union.
It was unsurprising that the mid-cap index was faring even worse than the 100 as mid-caps are significantly more domestic than large caps and tend to underperform when sterling weakens.
Challenger banks Virgin Money and Aldermore were the worst performers.
Meanwhile, housebuilders were also under the cosh. Despite the sector’s weak performance, analysts at Whitman Howard said they were not altering their forecasts on UK housebuilders on the back of the Leave vote.
“We believe that government support and their own financial/land resources will ensure a continuation of growth in value,” they said.
Whitman Howard noted housebuilders’ shares were falling on concerns over house prices, volumes and costs, but said it does not share these concerns and highlighted the unprecedented financial strength of the sector.
“Without reducing land investment, we estimate that the housebuilders will double net cash balances over the next two years.”
Sophos Group was also on the front foot as Numis sounded an upbeat note on the company ahead of its Capital Markets Day, pointing to the firm's strong products, a substantial market opportunity and the attractive cash flow yield on offer to back up its arguments.
Against that backdrop, it believed the IT security specialist's upcoming CMD on 29 June was a potential positive catalyst on the horizon.
Risers
Acacia Mining (ACA) 413.00p 20.76%
Centamin (DI) (CEY) 120.10p 10.28%
Polymetal International (POLY) 934.00p 7.29%
JPMorgan American Inv Trust (JAM) 303.00p 3.45%
NMC Health (NMC) 1,249.00p 3.05%
Fidelity China Special Situations (FCSS) 140.90p 2.40%
JPMorgan Emerging Markets Inv Trust (JMG) 595.00p 1.28%
Cairn Energy (CNE) 197.30p 1.18%
Templeton Emerging Markets Inv Trust (TEM) 476.00p 1.15%
Sophos Group (SOPH) 181.00p 1.06%
Fallers
Virgin Money Holdings (UK) (VM.) 260.90p -28.79%
Aldermore Group (ALD) 147.80p -28.15%
Crest Nicholson Holdings (CRST) 432.10p -26.14%
Derwent London (DLN) 2,599.00p -24.23%
Bovis Homes Group (BVS) 776.00p -24.22%
Bellway (BWY) 2,100.00p -23.19%
Marshalls (MSLH) 251.90p -22.28%
Great Portland Estates (GPOR) 599.50p -22.19%
Ibstock (IBST) 154.40p -22.02%
Galliford Try (GFRD) 1,037.00p -21.50%