London midday: Stocks fall further but housebuilders gain on Persimmon results
By Michele Maatouk
Date: Tuesday 11 Mar 2025
(Sharecast News) - London stocks had fallen a little further by midday on Tuesday as worries about a US recession continued to dent sentiment, and as data showed that UK retail sales growth slowest last month.
The FTSE 100 was down 0.3 at 8,576.49.
Russ Mould, investment director at AJ Bell, said: "Investors took a moment to catch their breath after dramatic declines on global markets yesterday.
"Wall Street suffered a big hit as investors panicked that Donald Trump's policies could lead the US into a recession. Asian and European markets were already jittery ahead of Wall Street opening yesterday, so their relative calm on Tuesday bodes well for US markets to follow suit later today. Indeed, futures prices imply small gains for the S&P and Nasdaq once Wall Street reopens for trading.
"This calm is positive for investors as long as it isn't the calm before the almighty storm. It won't take much to put investors' nerves on edge again, particularly as Trump remains unpredictable.
"Ongoing uncertainty around tariffs and the potential impact on economies could cause companies to delay investment decisions and consumers to be more cautious on spending. Investors will cast a keen eye on corporate outlook statements over the coming weeks and months and study every economic data point to see if Trump's decisions are spoiling the party."
On home shores, figures released earlier by the British Retail Consortium and KPMG showed that retail sales growth slowed again in February as poor fashion sales weighed down non-food spend.
The monthly BRC-KPMG Retail Sales Monitor report showed that UK retail sales rose at a year-on-year rate of 1.1% last month, compared with a 2.6% gain in January and the 3.2% growth registered in December.
However, while this was below the three-month average growth rate of 2.4%, this was still above the 12-month average of 0.8%.
Food sales were 2.3% higher than last February, though non-food sales were flat year-on-year.
"While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics. Jewellery, watches and fragrance sold well thanks to Valentine's Day, reversing declines seen last year, and furniture also returned to growth," said Helen Dickinson, chief executive of the BRC.
"Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kickstarts spending on Spring and Summer wardrobes."
Looking ahead, Dickinson said retailers will have "little choice" but to raise prices or cut investment ahead of the £7bn in new costs, with higher wage bills, National Insurance contributions and a new packaging levy set to kick in.
"It is time for government to course correct to ensure investment and growth are not undermined," she said.
In equity markets, airlines were in the red, with BA and Iberia owner IAG and easyJet both lower after a profit warning from Delta Airlines.
Spirax Group lost ground even as it said it managed to grow organic revenues across the board in 2024 despite industrial production growth being weaker than expected in the second half.
Infrastructure services firm Kier Group slumped even as it posted a rise in first-half profit and revenue and lifted its dividend as it hailed a record order book.
Domino's Pizza fell despite delivering a 3.8% rise in full-year underlying core earnings as customers tucked into special offers in store and online.
On the upside, housebuilder Persimmon gained as it reported a 10% jump in full-year underlying pre-tax profit to £395.1m, comfortably ahead of consensus expectations of £384m, and lifted its annual house building target.
Barratt Redrow, Taylor Wimpey, Berkeley, Vistry and Bellway also racked up strong gains.
Elsewhere, Rotork also rose on the back of results.
LSE Group advanced after Oddo BHF upgraded the shares to 'outperform' from 'neutral'.
Market Movers
FTSE 100 (UKX) 8,576.49 -0.28%
FTSE 250 (MCX) 19,926.36 0.26%
techMARK (TASX) 4,769.49 -0.04%
FTSE 100 - Risers
Melrose Industries (MRO) 504.80p 3.02%
Antofagasta (ANTO) 1,809.00p 2.29%
Persimmon (PSN) 1,197.00p 2.26%
Barratt Redrow (BTRW) 435.40p 2.01%
SEGRO (SGRO) 706.00p 1.93%
Sainsbury (J) (SBRY) 264.20p 1.77%
BAE Systems (BA.) 1,595.50p 1.69%
Mondi (MNDI) 1,273.50p 1.60%
Severn Trent (SVT) 2,500.00p 1.58%
Taylor Wimpey (TW.) 114.10p 1.42%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 295.50p -4.83%
Spirax Group (SPX) 6,720.00p -4.34%
InterContinental Hotels Group (IHG) 8,786.00p -3.45%
Intertek Group (ITRK) 5,030.00p -2.71%
Diploma (DPLM) 4,094.00p -2.10%
St James's Place (STJ) 989.50p -2.03%
The Sage Group (SGE) 1,196.50p -1.89%
Games Workshop Group (GAW) 14,120.00p -1.81%
Smurfit Westrock (DI) (SWR) 3,373.00p -1.78%
Standard Chartered (STAN) 1,150.50p -1.71%
FTSE 250 - Risers
Target Healthcare Reit Ltd (THRL) 91.90p 5.88%
Rotork (ROR) 330.80p 5.82%
Vistry Group (VTY) 625.50p 3.56%
Bellway (BWY) 2,296.00p 3.42%
IP Group (IPO) 40.05p 3.09%
Aston Martin Lagonda Global Holdings (AML) 83.95p 2.88%
Harworth Group (HWG) 165.00p 2.80%
Man Group (EMG) 212.80p 2.70%
Harbour Energy (HBR) 193.90p 2.48%
Raspberry PI Holdings (RPI) 590.25p 2.47%
FTSE 250 - Fallers
Kier Group (KIE) 123.00p -12.14%
Domino's Pizza Group (DOM) 280.20p -4.37%
TBC Bank Group (TBCG) 4,165.00p -2.46%
Carnival (CCL) 1,346.50p -2.43%
Dr. Martens (DOCS) 55.55p -1.77%
Watches of Switzerland Group (WOSG) 452.40p -1.69%
Ocado Group (OCDO) 244.30p -1.69%
Spectris (SXS) 2,474.00p -1.59%
Ferrexpo (FXPO) 68.80p -1.57%
Petershill Partners (PHLL) 239.00p -1.44%
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