FTSE 100 at the close: Glencore, Anglo American, Barratt Developments

By Michael Morton
13th July 2023

Related topics: Anglo American [LON:AAL], Barratt Developments [LON:BDEV], Glencore [LON:GLEN], Tickmill

By Patrick Munnelly, Market Strategist, Tickmill

The FTSE 100 recorded a second day of gains on Thursday. By the close; the blue chip index was up 0.3%, driven by the positive performance of energy and mining stocks.

FTSE 100 biggest movers

The increase in commodity prices contributed to the upward movement, with Glencore LON:GLEN leading the way by printing 2.5% in the green. Anglo American LON:AAL also continued its positive run, rising 1.7% during the day. In addition to the strong stock market performance, Sterling strengthened after official data revealed that Britain’s economy contracted by a smaller-than-expected margin in May. This data suggests that the country may be able to avoid a recession in the near term.

On the negative side of the ledger shares of Barratt Developments LON:BDEV, the largest homebuilder in the UK, experienced a 1.6% decline to 399.1 pence in morning trade. The company issued a warning stating that it would construct significantly fewer homes in the current fiscal year due to a weak market affected by rising mortgage rates and persistent inflation, which have deterred potential buyers. Barratt Developments expects to build between 13,250 and 14,250 units in the year ending June 30, 2024, compared to 17,206 homes constructed in the previous year. This reduction in expected output reflects the challenging conditions in the housing market. Furthermore, the company reported a decline in the rate of weekly bookings per Barratt site for the fiscal year 2023, which stood at 0.55, representing a 32.1% year-on-year decrease.

Barratt’s announcement had a ripple effect on its FTSE-100 peers, with Taylor Wimpey LON:TW. and Persimmon LON:PSN experiencing declines of 0.3% and 0.14% respectively. Despite the recent drop, Barratt Developments had seen a 5.3% increase year-to-date as of the previous close. These developments underscore the impact of the weak market conditions on Barratt Developments and the broader homebuilding sector in the UK. Market participants closely monitor the performance of companies in the housing market as it can reflect the overall health of the economy and consumer sentiment.