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Share Price: 470.75
Bid: 470.70
Ask: 470.80
Change: 0.25 (0.05%)
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Open: 468.40
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UPDATE 1-Housebuilders, miners & oil stocks weigh on FTSE 100

Tue, 12th Jun 2018 17:33

* FTSE 100 down 0.4 pct

* Centrica leads index after Jefferies upgrade

* Crest Nicholson falls 5 pct after margin hit

* Housebuilders decline

* Domino's tumbles after CFO departure(Updates prices, adds details, quotes)

By Helen Reid

LONDON, June 12 (Reuters) - Losses in miners and oil majorssent Britain's top share index into the red on Tuesday, whilehousebuilding stocks tumbled after weak results from CrestNicholson piled extra pressure on a sector already hit by a runof poor economic data.

A summit between U.S. President Donald Trump and NorthKorea's Kim Jong Un had limited impact on UK and European stockmarkets. The FTSE 100 fell 0.4 percent, while the STOXX600 edged down 0.1 percent.

With a crucial vote on Brexit getting underway in theBritish parliament, a volatile sterling currency helped reinback the FTSE's gains.

Miners Anglo American and Antofagasta wereamong the top fallers, down 3.2 and 2.3 percent as a strongdollar weighed on copper prices.

Oil majors Royal Dutch Shell and BP fell 1.4percent, tracking a decline in Europe's oil & gas indexas crude prices flagged, and traders said investors werepocketing profits after a strong run in the sector.

While commodities weighed on the FTSE 100, the biggest moveswere in the mid- and small-cap markets.

Crest Nicholson shares tumbled 4.2 percent, leadingthe housebuilding sector down. The southern England-focussedhousebuilder said its margins had been hit by higher costs andflat house prices, and was moving out of central London.

"Markets were unimpressed with lack of a clear cost controlstrategy and with UK housing sector on the downturn it is notclear if the outlook for the housebuilder will improvesubstantially," said Artjom Hatsaturjants, analyst at AccendoMarkets.

Housebuilders fell for a second day, extending their fall onCrest's pessimistic tone. Data on Monday showing a fall in UKfactory output and widening goods trade deficit had dented theshares.

Barratt Development, Berkeley, Persimmonand Taylor Wimpey all fell 2.1 to 3.1 percent,bottom of the FTSE 100, while mid-caps Bellway andRedrow fell 3.6 and 4.2 percent.

Domino's Pizza Group was another top faller, down5.8 percent after the company's chief financial officer departedsuddenly, with immediate effect.

Ocado, which had made gains on Monday after brokerupgrades, fell back 3.3 percent after French supermarket chainCarrefour upped the ante in the retail sector bysigning an online shopping partnership with Google.

Also in disruptive retail, online fashion brand Boohoofell percent despite reporting strong results withrevenue growing 53 percent in the three months to May 31.

The stock tumbled 5 percent at the open but ended the daydown just 1 percent.

"Investors may be disappointed by the lower than expectedgrowth at the boohoo brand," said Jefferies analysts. Liberumdowngraded the stock, and one trader also said expectations werevery high for Boohoo and some profit-taking was likely.

Shares in small-cap Acacia Mining fell 3.8 percentafter the gold miner reported a fatal accident at its North Maramine in Tanzania.

Utility Centrica gained 3.7 percent after Jefferies upgradedit to a "buy".

Meanwhile a downgrade from Numis drove vehicle retailerMotorpoint to the bottom of the small-cap index.

(Reporting by Helen ReidEditing by Gareth Jones)

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