FTSE 100 steady as bank rally offsets homebuilders

[MongiIG]

FTSE 100 steady as bank rally offsets homebuilders

Stock MarketsJan 10, 2022 

 

 

 

© Reuters. FILE PHOTO: A red London bus passes the Stock Exchange in London, Britain, February 9, 2011. REUTERS/Luke MacGregor

(Reuters) - UK's blue-chip index held steady in early deals on Monday as banking shares extended a rally on expectations of interest rate hikes, while homebuilders were hit by $5.4 billion in costs to remove cladding from buildings.

The FTSE 100 was flat by 0813 GMT following weekly gains spurred by a rotation into sectors such as banks, oil & gas and mining as investors priced in interest rate hikes by major central banks.

Shares of Berkeley Group, Barratt Developments (LON:BDEV), Persimmon (LON:PSN) and Taylor Wimpey (LON:TW) were down between 2.0% and 2.5% after Britain ordered housebuilders to pay around $5.4 billion to help remove dangerous cladding from buildings following a deadly 2017 London fire.

Citi also downgraded Persimmon to "neutral" from "buy".

The domestically focused FTSE mid-cap index was also flat, following weekly losses as a surge in COVID-19 cases due to the Omicron variant hit sentiment.

 

Plus500 (LON:PLUSP) rose 2.5% after the online trading platform said it expects annual results to exceed market expectations, even as it reported slower fourth-quarter growth.

Spire Healthcare gained 1% after England's health service said it had struck a deal with private health firms to provide crucial treatments should Omicron overwhelm the National Health Service.