Skip to main content
  • Register
  • Help
  • Contact us
  • Log out of your HL account

Sector movers: Builders and retailers rise on Brexit news

Thu 22 November 2018 14:46 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Housebuilders and retailers were among those sectors lifted by optimism on Brexit, but banks were not biting Theresa May's hook, and miners and utilities were firmly in the red.

News that Theresa May had agreed upon a draft text of future ties with the European Union post-Brexit gave a boost to the pound and several domestically focused sectors, including construction, transport and retail.

Despite the positive tones emanating from Westminster, market analyst Joshua Mahony at IG said, "there is reason to believe that this optimistic rhetoric is nothing more than unenforceable propaganda aimed at improving May's chance in Parliament".

While the European Commission's rejection of the Italian budget, with rumours of a potential compromise rejected, taking us closer to a breakdown in relations between the Italians and the EU.

"Ultimately it will come down to the Eurogroup to decide, yet should we see the EU levy a fine upon an already Eurosceptic coalition, it would almost certainly ramp up market fears once more," Mahony said, which could worry some bank investors.

RBS was in firmly in the green, LLoyds was flat, Barclays down slightly, but StanChart higher on reports of a potential share buyback.

Meanwhile the FTSE 350 Industrial Metals index was down almost 6% and FTSE 350 Mining down more than 2% amid what traders suggested was the general risk-off sentiment.

Utilities were led lower by Centrica as it warned that full year earnings would be hit by weaker energy production volumes and the loss of 372,000 home energy supply accounts in the third quarter, though it still expects to hit other full year targets for cash flow, debt and dividends.

The British Gas owner said results will be affected by outages in the recent quarter at its Spirit Energy exploration and production joint venture, and at its nuclear division.

Water company Severn Trent slipped despite reporting continued strong performance in its half-year results, with group turnover rising 3.6% or £30.5m to £881.5m in the six months ended 30 September.

Top performing sectors so far today

Automobiles & Parts 7,817.06 +2.49%

Industrial Transportation 2,457.78 +1.55%

Software & Computer Services 1,739.42 +1.37%

Technology Hardware & Equipment 951.20 +0.50%

General Retailers 2,156.15 +0.37%

Bottom performing sectors so far today

Industrial Metals & Mining 4,590.63 -5.86%

Forestry & Paper 19,419.18 -3.95%

Gas, Water & Multiutilities 4,866.71 -3.40%

Mobile Telecommunications 3,390.63 -3.40%

Tobacco 31,795.72 -2.58%

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.