FTSE 100 movers: Barratt hit by downgrade; Unilever rallies
By Michele Maatouk
Date: Monday 24 Jan 2022
(Sharecast News) - London's FTSE 100 was down 2.3% at 7,323.40 in afternoon trade on Monday.
Barratt Developments was weaker after a downgrade to 'hold' from 'buy' at Jefferies, which was assessing the impact of cladding issues.
"For those housebuilders who provisioned under the previous scope - i.e. buildings above 18 metres - and/or where they are the 'responsible person', it sees risk of further one-off charges and cash outs for cladding remediation, as well as negative PR.
"At this stage we believe even the housebuilders themselves do not know the full extent of the cost (M&A through the period, lack of access, uncertain 'solutions', labour constraints, clawback from freeholders) but with approximately 55% of the high rise buildings requiring remediation in London, we believe it is fair to assume the exposure to those with a long history of build in the Capital could be more substantial."
Fellow housebuilder Persimmon was also in the red even as Jefferies said it remained a top pick in the sector.
Miner Glencore was weaker after a downgrade to 'neutral' at Bank of America Merrill Lynch.
Unilever was the top riser on the index following reports that Nelson Peltz's activist hedge fund Trian has built a stake in the consumer goods maker.
Vodafone was up following reports it has explored a potential acquisition of rival Three UK and been in talks about a potential merger of its Italian business with Iliad.
FTSE 100 - Risers
Unilever (ULVR) 3,906.00p 6.29%
Vodafone Group (VOD) 124.66p 6.06%
British American Tobacco (BATS) 3,231.50p 2.98%
Imperial Brands (IMB) 1,765.00p 1.96%
Sainsbury (J) (SBRY) 285.80p 0.74%
Avast (AVST) 604.80p 0.47%
Reckitt Benckiser Group (RKT) 6,466.00p 0.34%
Tesco (TSCO) 289.40p 0.23%
Meggitt (MGGT) 734.00p 0.14%
United Utilities Group (UU.) 1,066.50p 0.05%
FTSE 100 - Fallers
Scottish Mortgage Inv Trust (SMT) 1,016.50p -8.38%
Pearson (PSON) 609.80p -7.47%
Barratt Developments (BDEV) 624.80p -7.35%
Polymetal International (POLY) 1,132.00p -7.25%
Evraz (EVR) 503.80p -6.81%
Antofagasta (ANTO) 1,356.50p -6.45%
Entain (ENT) 1,531.00p -6.36%
Persimmon (PSN) 2,394.00p -6.08%
International Consolidated Airlines Group SA (CDI) (IAG) 148.60p -5.83%
Glencore (GLEN) 386.65p -5.71%
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