FTSE 100 movers: Housebuilders rally after CPI data; Antofagasta falls

(Sharecast News) - London's FTSE 100 was up 2.1% at 7,610.03 in afternoon trade on Wednesday. Housebuilders were on the rise after the release of softer-than-expected UK consumer price inflation data. Persimmon, Taylor Wimpey and Barratt Developments all rose.

Figures released earlier by the Office for National Statistics showed that consumer price inflation fell to 7.9% in the year to June from 8.7% in May. This was the lowest reading since March 2022 and below analysts' expectations of 8.2%.

Meanwhile core inflation - which excludes energy, food, alcohol and tobacco - fell to 6.9% from 7.1%, versus expectations for it to remain unchanged.

Danni Hewson, head of financial analysis at AJ Bell, said: "Housebuilders had been heavily sold off due to fears a sharp rise in interest rates would destabilise the housing market. While that's certainly in motion, with plenty of people struggling with higher mortgage rates and a slowdown in property transactions, the valuations of housebuilders were effectively pricing in a deep rut.

"Today's inflation news has spurred investors with an appetite for risk to go fishing for bargains in the space in the hope that property market won't experience a severe collapse."

Chilean copper miner Antofagasta fell as it cut its full-year copper production forecast.

FTSE 100 - Risers

Persimmon (PSN) 1,196.00p 9.52% Land Securities Group (LAND) 667.20p 8.59% SEGRO (SGRO) 798.20p 7.40% Hargreaves Lansdown (HL.) 900.20p 7.14% Taylor Wimpey (TW.) 116.10p 6.61% Barratt Developments (BDEV) 452.20p 6.58% Berkeley Group Holdings (The) (BKG) 4,302.00p 5.21% Unite Group (UTG) 962.50p 4.96% Legal & General Group (LGEN) 237.60p 4.85% Admiral Group (ADM) 2,179.00p 4.71%

FTSE 100 - Fallers

Antofagasta (ANTO) 1,475.00p -2.12% Weir Group (WEIR) 1,803.00p -0.96% WPP (WPP) 866.00p -0.89% Anglo American (AAL) 2,296.00p -0.65% Ocado Group (OCDO) 688.00p -0.52% Prudential (PRU) 1,070.00p -0.47% Rio Tinto (RIO) 5,087.00p -0.45% Centrica (CNA) 123.25p -0.08% Associated British Foods (ABF) 2,103.00p 0.00% Glencore (GLEN) 454.00p 0.00%