FTSE 100 movers: Diageo tumbles; defensives rise as risk appetite wanes

(Sharecast News) - Diageo was the standout mover of the day on the FTSE 100, dropping over 14% after giving a disappointing update on its first-half performance; meanwhile, a decline in risk appetite hit mining stocks and lifted shares of defensive names in utilities and phamaceuticals. Smirnoff, Guinness and Bailey's owner Diageo was trading at its lowest levels in over two years after saying it expects to see a slowdown in growth in the first half due to a weaker performance in Latin America and the Caribbean. That follows an update in September that said it expected first-half organic net sales growth to pick up from the second half of last year.

Latin America and the Caribbean, one of its five key regions which accounts for 11% of group net sales values, is now expected to see an organic net sales decline of more than 20% in the second half compared with last year.

Commenting on the trading update, Victoria Scholar, head of investment at Interactive Investors said: "The consumer slowdown is prompting customers to switch to cheaper substitute drinks instead, weighing on Diageo's branded sales.

"Trading down among consumers is a key risk to Diageo's strategy which has been to focus on quality over quantity. The economic downturn is likely to mean fewer consumers are willing or able to pay more for expensive high margin premium spirits."

Heavy falls in the price of gold, silver, copper and platinum were weighing on share prices in the mining sector, with Fresnillo, Anglo American and Antofagasta among the worst performers of the day.

Housebuilder stocks were providing a further drag in London after FTSE 250-listed Redrow warned that profits would be at the lower end of expectations due to weaker market conditions. FTSE 100 peers Berkeley, Barratt Developments and Taylor Wimpey were all firmly lower.

The wider market sell-off was helping stocks in defensive sector, such as British Gas owner Centrica, defence stock BAE Systems and pharma peers Hikma and Dechra.

Meanwhile, oil giants Shell and BP were also among the few risers as crude prices rebounded after recent heavy falls. Brent was up 1.3% at $81.07 on the day after hitting a four-month low the previous session.

FTSE 100 - Risers

BAE Systems (BA.) 1,108.00p 1.65% Shell (SHEL) 2,636.50p 0.82% BP (BP.) 479.05p 0.78% Marks & Spencer Group (MKS) 245.00p 0.37% Centrica (CNA) 152.00p 0.36% 3i Group (III) 2,028.00p 0.30% Relx plc (REL) 2,963.00p 0.24% Hikma Pharmaceuticals (HIK) 1,758.50p 0.06% Dechra Pharmaceuticals (DPH) 3,782.00p 0.05% London Stock Exchange Group (LSEG) 8,540.00p 0.05%

FTSE 100 - Fallers

Diageo (DGE) 2,776.00p -14.45% Ocado Group (OCDO) 498.30p -8.57% Fresnillo (FRES) 520.40p -4.23% Anglo American (AAL) 2,000.50p -3.64% Barratt Developments (BDEV) 440.90p -3.61% Burberry Group (BRBY) 1,667.00p -3.05% Antofagasta (ANTO) 1,284.50p -3.02% WPP (WPP) 706.40p -2.78% Spirax-Sarco Engineering (SPX) 8,530.00p -2.63% Croda International (CRDA) 4,459.00p -2.51%