London midday: Stocks turn lower as PageGroup, Crest Nicholson disappoint

(Sharecast News) - London stocks had fallen into the red by midday following disappointing updates from PageGroup and Crest Nicholson, with trade expected to be quieter than usual as US markets will be closed for Martin Luther King day. The FTSE 100 was down 0.3% at 7,599.59.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The focus is being trained on tense geopolitics, economic malaise and the impact of artificial intelligence on nations around the globe as leaders gather at the World Economic Forum in Davos.

"Amid the uncertain economic outlook, the FTSE 100 is set to struggle for a sense of direction. It managed to gain small ground in early trade, before losing ground, with energy giants helped by the recent uplift in oil prices. Activity is expected to be lighter, given that exchanges in the US are largely closed for Martin Luther King Day.

"Despite some more optimistic outlooks from small business leaders in the UK, there are fresh signs that employers are becoming more reluctant to hire staff. Data from Hargreaves Lansdown's Savings and Resilience Barometer shows that income inequality is continuing to grow as cost-of-living pressures swirl with poorer households continuing to see finances sideswiped."

Investors were mulling the latest data from Rightmove, which showed that average UK house prices rose 1.3% last month - the largest jump in three years amid signs the market was starting to ease.

The rise for homes put on the market between December and January was also more than double the average increase for this time of year, Rightmove added.

"For now the data at the start of 2024 points to building momentum, and reasons for growing market optimism," said Tim Bannister, director of property science at Rightmove.

The number of agreed sales was 20% higher in the first week of January compared to the same period last year, with buyer demand up 5%. The number of homes coming to the market rose by 15%.

"More new sellers are now entering the market, and with more confident pricing. While the increased level of buyer activity that we're also seeing may justify some of this increased pricing confidence from sellers, it's important that sellers who are keen to find a buyer don't get carried away with New Year enthusiasm when setting their price expectations," Bannister said.

"Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers' spending power."

In equity markets, Ocado slid ahead of a trading statement on Tuesday, while luxury fashion brand Burberry was hit by a downgrade to 'neutral' from 'buy' at Goldman Sachs, which slashed its price target to 1,663p from 2,345p.

Banks were also under the cosh, with HSBC and Lloyds among the worst performers on the FTSE 100.

Recruitment specialist PageGroup lost ground after it said 2023 full-year operating profit was set to be slightly below previous guidance as fourth-quarter profits fell amid a global hiring slowdown.

Housebuilder Crest Nicholson fell as it delivered a profit warning as a result of higher-than-expected costs and announced an additional one-off charge from a legal claim. The group said that adjusted pre-tax profit for 2023 is now expected to be £41m, lower than the £45-50m range given in November.

On the upside, Bakkavor jumped as it has announced a board change after hedge fund Baupost sold its stake in the food manufacturing group to private equity firm LongRange Capital.

Market Movers

FTSE 100 (UKX) 7,599.59 -0.33% FTSE 250 (MCX) 19,152.16 -0.24% techMARK (TASX) 4,287.87 -0.21%

FTSE 100 - Risers

Flutter Entertainment (CDI) (FLTR) 13,025.00p 1.84% Rightmove (RMV) 571.40p 1.49% Admiral Group (ADM) 2,618.00p 1.39% Aviva (AV.) 433.80p 1.36% Centrica (CNA) 151.85p 1.23% International Consolidated Airlines Group SA (CDI) (IAG) 145.90p 1.07% Tesco (TSCO) 300.00p 1.04% Pearson (PSON) 981.40p 0.88% Associated British Foods (ABF) 2,283.00p 0.79% Compass Group (CPG) 2,195.00p 0.78%

FTSE 100 - Fallers

Ocado Group (OCDO) 620.80p -4.81% Burberry Group (BRBY) 1,228.00p -4.47% HSBC Holdings (HSBA) 595.30p -2.43% Lloyds Banking Group (LLOY) 44.10p -1.95% Fresnillo (FRES) 523.60p -1.84% St James's Place (STJ) 626.80p -1.66% Experian (EXPN) 3,118.00p -1.52% Prudential (PRU) 811.60p -1.41% B&M European Value Retail S.A. (DI) (BME) 560.80p -1.13% Sage Group (SGE) 1,160.00p -1.11%

FTSE 250 - Risers

Tyman (TYMN) 319.50p 4.07% Bakkavor Group (BAKK) 88.00p 3.53% Wood Group (John) (WG.) 161.60p 3.00% Schroder Oriental Income Fund Ltd. (SOI) 246.00p 1.86% Scottish American Inv Company (SAIN) 522.00p 1.75% Drax Group (DRX) 529.60p 1.49% Future (FUTR) 790.00p 1.35% Lancashire Holdings Limited (LRE) 604.50p 1.34% Darktrace (DARK) 356.50p 1.16% Premier Foods (PFD) 137.60p 1.03%

FTSE 250 - Fallers

Diversified Energy Company (DEC) 1,018.50p -7.83% Crest Nicholson Holdings (CRST) 206.40p -4.71% Pets at Home Group (PETS) 296.60p -3.64% Aston Martin Lagonda Global Holdings (AML) 198.60p -2.36% Pennon Group (PNN) 727.00p -2.35% Pagegroup (PAGE) 446.40p -2.19% Ashmore Group (ASHM) 219.20p -2.06% Close Brothers Group (CBG) 645.00p -2.05% Edinburgh Worldwide Inv Trust (EWI) 147.20p -1.87% Sirius Real Estate Ltd. (SRE) 88.20p -1.84%