London midday: FTSE slides on China disappointment; Vistry tanks on profit warning
London stocks were still sharply lower by midday on Tuesday as investors were left disappointed by a lack of new stimulus measures from China, and with housebuilder Vistry in freefall after a profit warning.
The FTSE 100 was down 1.1% at 8,211.71.
Investors were unimpressed after China’s top economic planner, the National Development and Reform Commission, failed to announce any further stimulus measures at a press conference earlier on Tuesday.
Patrick Munnelly at Tickmill Group said the NDRC "expressed confidence in meeting its targets but offered no details that investors craved on China's aggressive stimulus measures".
Russ Mould, investment director at AJ Bell, said: "The devil is in the detail and we’re lacking precise information from officials on how Beijing expects the Chinese economy to regain previous strength beyond headline initiatives announced last month including a lower cost of borrowing on existing mortgages and banks having the capacity to lend more money.
"In particular, the market wants firm details on fiscal stimulus which hasn’t been forthcoming. It explains why some cracks were starting to appear in the China euphoria, with Hong Kong’s Hang Seng index slipping back 7% as investors trimmed positions in consumer-facing companies, real estate and financials.
"You can tell some scepticism is already creeping in, given how the mining sector was firmly in the red on Tuesday. Metal producers have been keeping their fingers crossed for stronger demand from China following a miserable time for industrial commodity prices of late.
"However, the negative share price performance of Antofagasta, Rio Tinto and Anglo American would imply that China’s latest economic stimulus measures might not live up to the initial hype. Or it might simply be canny investors locking in some of the recent gains on the stocks just in case we see a broader pullback."
Luxury fashion brand Burberry, which is heavily exposed to China, was also a big loser.
Vistry was the worst performer, however, down more than 20% as the housebuilder warned on profits after underestimating build costs on nine schemes in its Southern Division.
The company said it now expects FY24 adjusted pre-tax profit to be £80m lower, while profit for FY25 will take a hit of around £30m and £5m for FY26.
The revisions mean that adjusted pre-tax profit for FY24 is now expected to be around £350m, a hit of about 20%.
Senior also slid after the engineering solutions provider announced that the ongoing supply and logistical challenges hitting the wider aerospace sector will have an impact on full-year results.
The company, which makes high-tech components and systems for OEM manufacturers in the aerospace, defence, land vehicle, power and energy markets, now expects aerospace results in the second half to be lower than the first due to "temporary near-term customer related headwinds".
On the upside, Imperial Brands was the top gainer on the FTSE 100 as it beefed up its shareholder returns programme by £400m after confirming it finished the fiscal year with in-line results, with growth in both tobacco and next generation products.
Convenience food producer Greencore rallied after it lifted full-year profit guidance following a strong fourth-quarter performance.
Market Movers
FTSE 100 (UKX) 8,211.71 -1.11%
FTSE 250 (MCX) 20,670.12 -0.88%
techMARK (TASX) 4,775.24 -0.80%
FTSE 100 - Risers
Imperial Brands (IMB) 2,230.00p 3.82%
Ashtead Group (AHT) 5,722.00p 1.31%
Next (NXT) 9,920.00p 0.90%
Tesco (TSCO) 361.80p 0.56%
Reckitt Benckiser Group (RKT) 4,578.00p 0.55%
Marks & Spencer Group (MKS) 369.50p 0.46%
Diploma (DPLM) 4,262.00p 0.38%
Unite Group (UTG) 919.50p 0.33%
Auto Trader Group (AUTO) 855.00p 0.26%
Whitbread (WTB) 3,137.00p 0.26%
FTSE 100 - Fallers
Vistry Group (VTY) 970.50p -23.76%
Anglo American (AAL) 2,311.00p -5.48%
Prudential (PRU) 681.40p -5.28%
Antofagasta (ANTO) 1,886.50p -5.22%
Rio Tinto (RIO) 5,051.00p -4.70%
Glencore (GLEN) 420.60p -3.86%
HSBC Holdings (HSBA) 669.40p -3.71%
Fresnillo (FRES) 610.50p -2.24%
Hiscox Limited (DI) (HSX) 1,084.00p -2.17%
Melrose Industries (MRO) 437.90p -2.06%
FTSE 250 - Risers
PRS Reit (The) (PRSR) 100.20p 1.31%
Foresight Solar Fund Limited (FSFL) 93.60p 1.08%
Energean (ENOG) 910.50p 0.89%
The Global Smaller Companies Trust (GSCT) 166.60p 0.85%
CMC Markets (CMCX) 303.00p 0.83%
Tritax Eurobox (GBP) (EBOX) 68.90p 0.73%
Hammerson (HMSO) 308.20p 0.72%
GCP Infrastructure Investments Ltd (GCP) 78.00p 0.65%
Dunelm Group (DNLM) 1,175.00p 0.60%
SSP Group (SSPG) 159.00p 0.51%
FTSE 250 - Fallers
Senior (SNR) 129.40p -11.85%
Fidelity China Special Situations (FCSS) 222.50p -9.00%
W.A.G Payment Solutions (WPS) 78.00p -5.80%
Burberry Group (BRBY) 634.80p -5.76%
Crest Nicholson Holdings (CRST) 184.10p -4.86%
Ithaca Energy (ITH) 112.40p -3.77%
Renishaw (RSW) 3,565.00p -3.26%
Indivior (INDV) 759.50p -3.13%
Dr. Martens (DOCS) 55.20p -2.90%
Bodycote (BOY) 562.00p -2.77%