FTSE 100 at the close: Persimmon, Antofagasta, Land Securities

By Michael Morton
19th July 2023

Related topics: Antofagasta [LON:ANTO], Persimmon [LON:PSN], Land Securities [LON:LAND], Tickmill

By Patrick Munnelly, Market Strategist, Tickmill

The FTSE 100 index was up 1.8% at the close as UK housebuilders and property firms experienced significant gains following news that inflation has slowed sharply in the country. The UK housebuilders’ index surged by 6.4%, on track for its best day since November 2008. The housing index rose sharply for the second consecutive day. The FTSE Real Estate index, which includes commercial property firms and real estate investment trusts (REITs), also jumped by 5.3%, heading for its best day since February 2.

British inflation in June fell more than expected, reaching its slowest pace in over a year at 7.9%. This easing of inflationary pressures relieved some of the pressure on the Bank of England to continue raising interest rates sharply. As expectations grew that UK rates might peak sooner than initially feared, the housing index gained about 4% on Tuesday.

FTSE 100 biggest movers

FTSE 100 homebuilder Persimmon LON:PSN was on of the top percentage gainers in the index, rising by 8.3% at the close. Barratt LON:BDEV and Taylor Wimpey LON:TW. saw gains of 7% and 6.8%, respectively. All 28 constituents currently trading on the Real Estate index saw gains. Among commercial property firms, Segro LON:SGRO and Land Securities LON:LAND were among the top percentage gainers on the FTSE 100, rising by approximately 7% and 7.65%, respectively.

On the negative side of a mainly positive ledger sits shares of Chilean miner Antofagasta LON:ANTO, declining by as much as 1.3% by the session close. The company revised its full-year copper production forecast, lowering it to a range of 640,000-670,000 metric tons from the previous estimate of 670,000-710,000 metric tons. This adjustment was due to persistent water shortages caused by drought conditions in Chile. Antofagasta reported a 10% increase in copper production to 295,500 metric tons for the first half of the year. The company, however, maintained its capital expenditure outlook for the fiscal year at $1.9 billion. Analysts at Citi noted that the reduced copper production forecast for full-year 2023 could weigh on consensus estimates. Year-to-date, Antofagasta’s stock has declined by 2.5%.