FTSE 100 movers: Housebuilders rally; Anglo hit by downgrade

(Sharecast News) - London's FTSE 100 was up 1.2% at 8,297.61 in afternoon trade on Wednesday. Housebuilders Persimmon, Taylor Wimpey and Barratt Redrow all shot higher as data showed that UK consumer price inflation unexpectedly fell in December, underpinning expectations of a rate cut in February.

Banks were also in the black, with Barclays, Lloyds and NatWest among the top performers.

Russ Mould, investment director at AJ Bell, said: "A surprise pullback in the rate of inflation has given joy to investors.

"It strengthens the argument for the Bank of England to continue cutting interest rates and that's fired up shares in housebuilders in the hope that mortgage rates will go down and more people will be able to afford to get onto the housing ladder. Banking shares jumped on the prospect of more demand in the mortgage market."

Diploma rallied as the distribution group hailed a "strong" first quarter, in line with expectations.

Severn Trent rose as JPMorgan Cazenove said it was its "top pick" in the sector, "given sector leading RCV growth and outperformance, underpinned by its best-in-class track record".

Anglo American was under the cosh as RBC Capital Markets downgraded the miner to 'underperform' from 'sector perform' as it took a look at European diversified miners.

The bank cut its price target on Anglo to 2,200p from 2,400p. It noted that Anglo was the standout outperformer in 2024, delivering on its restructuring plans, and said it retains a residual bid premium since BHP's takeover approach.

"However, we do not believe it is a bid target at the current share price (trading at 1% above BHP's final offer) and certainly not before it spins out Anglo Platinum (expected by mid-2025)," RBC said.

"Management face trickier restructuring steps from here in our view."

FTSE 100 - Risers

St James's Place (STJ) 880.00p 6.15% Barclays (BARC) 278.60p 5.61% Lloyds Banking Group (LLOY) 56.60p 5.56% Persimmon (PSN) 1,172.00p 5.21% Diploma (DPLM) 4,282.00p 4.90% Taylor Wimpey (TW.) 113.75p 4.26% Barratt Redrow (BTRW) 419.90p 4.25% NATWEST GROUP (NWG) 402.20p 4.22% Severn Trent (SVT) 2,436.00p 4.19% Land Securities Group (LAND) 554.50p 4.13%

FTSE 100 - Fallers

Imperial Brands (IMB) 2,554.00p -1.58% Rolls-Royce Holdings (RR.) 560.00p -1.13% Melrose Industries (MRO) 554.80p -0.89% Anglo American (AAL) 2,451.50p -0.83% British American Tobacco (BATS) 2,892.00p -0.82% Reckitt Benckiser Group (RKT) 4,830.00p -0.68% Rentokil Initial (RTO) 375.70p -0.48% InterContinental Hotels Group (IHG) 10,035.00p -0.35% Unilever (ULVR) 4,467.00p -0.29% AstraZeneca (AZN) 10,614.00p -0.15%