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FTSE 250 movers: Brexit knocks down housebuilders as precious metals shine

By Duncan Ferris

Date: Thursday 15 Nov 2018

FTSE 250 movers: Brexit knocks down housebuilders as precious metals shine

(Sharecast News) - London's FTSE 250 was down 1.67% at 18,594.41 in afternoon trade on Thursday, as housebuilders fell amid Brexit chaos in Theresa May's cabinet.
UK-focused stocks such as housebuilders and property firms dominated the top fallers, with Countryside Properties, Bovis Homes, Redrow, Bellway, Kier and Crest Nicholson all dropping.

Housebuilders were also being weighed down by an update from Bovis, which warned that uncertainty about Brexit had put off discretionary homebuyers.

George Salmon, equity analyst at Hargreaves Lansdown, said: "Brexit is proving to be a fly in the ointment. The housing market is already slowing, and the worry is it grinds to a halt in the event of a disorderly Brexit - which would clearly be bad news for the builders. A weak secondary market means around 15% of Bovis' transactions now rely on part-exchange, hardly reassuring. Overall, the sector looks something of a binary bet at the moment."

Elsewhere, Capita tumbled a day after it emerged that the outsourcer had failed to deliver thousands of cervical cancer screening letters to patients as part of a contract with NHS England.

Cineworld dropped after it reported that an 11.6% increase in sales after three quarters of the year keeps things on track to meet expectations, though Numis analysts noted that this "remains relatively conservative given it would imply mid-single digit decline in revenues for the rest of the year".

At the other end of the scales, asset manager Intermediate Capital Group surged on Thursday as it posted a 17% rise in first-half assets under management to €33.6bn, with fundraising reaching a new high of €6.1bn.

Shore Capital analyst Gary Greenwood said ICG has been operating in almost perfect market conditions, reflecting strong demand for alternative high yield assets in a low interest rate environment.

Communications technology provider Spirent Communications was on the rise after reporting that its performance delivery was "on plan", with further good momentum enjoyed in the third quarter.

Precious metals miners Centamin and Hochschild Mining shone as gold prices jumped alongside the sterling slump that followed the resignation of two cabinet ministers and rumours of a Conservative Party vote of no confidence in Theresa May.

Meanwhile, Cairn Energy jumped after announcing an oil discovery on the 9/14a-17B well and associated side-track on the Agar-Plantain Prospect in the UK North Sea on Thursday, as well as a farm-out agreement for a 40% non-operated interest of the Chimera prospect in the UK North Sea.

Emerging market funds also performed well, with Fidelity China Special Situations and trusts at JPMorgan, Templeton and Genesis all making strong gains as China-US trade relations were viewed with fresh optimism and fallout from Theresa May's proposed Brexit deal weakened UK stocks.

Market Movers
FTSE 250 (MCX) 18,594.41 -1.67%

FTSE 250 - Risers

Intermediate Capital Group (ICP) 971.50p 5.14%
Spirent Communications (SPT) 120.60p 4.69%
Centamin (DI) (CEY) 97.50p 4.35%
Cairn Energy (CNE) 193.70p 3.47%
Fidelity China Special Situations (FCSS) 200.10p 3.04%
Hochschild Mining (HOC) 155.00p 2.96%
JPMorgan Emerging Markets Inv Trust (JMG) 811.00p 2.79%
Spectris (SXS) 2,140.00p 2.44%
Templeton Emerging Markets Inv Trust (TEM) 682.00p 2.40%
Genesis Emerging Markets Fund Ltd Ptg NPV (GSS) 641.55p 2.16%

FTSE 250 - Fallers

Countryside Properties (CSP) 277.40p -10.92%
Capita (CPI) 112.05p -10.89%
Bovis Homes Group (BVS) 938.80p -9.77%
Redrow (RDW) 512.50p -9.05%
Cineworld Group (CINE) 273.40p -7.88%
Contour Global (GLO) 157.50p -7.57%
Drax Group (DRX) 383.00p -7.17%
Bellway (BWY) 2,840.00p -7.01%
Kier Group (KIE) 817.00p -6.63%
Crest Nicholson Holdings (CRST) 333.60p -6.45%


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