(Sharecast News) - London's FTSE 100 was down 0.6% at 8,190.25 in afternoon trade on Friday.
Housebuilders were the standout gainers following Labour's landslide victory, as the party has plans to build 1.5 million new homes. Vistry, Persimmon, Taylor Wimpey, Barratt and Berkeley were all up.
RBC Capital Markets said in a research note that the Labour Party has "big plans" for the sector.
"If election pledges turn into policy, today is more than just a new day in housebuilding, it is the dawning of a new age," it said.
"In the next 100 days we are likely to see the reinstatement of housing targets, the refining of greenbelt and the reform of planning, and by the end of the year the newest version of Labour may have announced a new generation of new towns.
"Over the last few years housebuilders' potential has been hamstrung, but over the next few this potential is likely to be unleashed. If the new Government's walk matches its talk we expect the sector to re-rate, and in the very short term we suspect that the talk alone will be enough to lift share prices. In our view, whilst all housebuilders benefit from the anticipated changes the biggest winners will be Taylor Wimpey, Persimmon and Vistry."
Elsewhere, Lloyds gained after an upgrade to 'outperform' from 'neutral' at Exane BNP Paribas.
Other banks were under the cosh, however, with HSBC, Standard Charted and Barclays all down.
FTSE 100 - Risers
Vistry Group (VTY) 1,307.00p 3.81%
Barratt Developments (BDEV) 510.00p 3.66%
Persimmon (PSN) 1,481.50p 3.46%
Taylor Wimpey (TW.) 153.50p 3.16%
Fresnillo (FRES) 591.50p 2.60%
Berkeley Group Holdings (The) (BKG) 4,828.00p 2.20%
Lloyds Banking Group (LLOY) 58.50p 2.13%
Antofagasta (ANTO) 2,216.00p 2.07%
Spirax Group (SPX) 8,605.00p 2.02%
Burberry Group (BRBY) 896.00p 2.00%
FTSE 100 - Fallers
HSBC Holdings (HSBA) 676.10p -2.20%
Rio Tinto (RIO) 5,277.00p -1.53%
Standard Chartered (STAN) 729.20p -1.35%
Prudential (PRU) 711.80p -0.95%
Aviva (AV.) 477.00p -0.83%
InterContinental Hotels Group (IHG) 8,178.00p -0.82%
Barclays (BARC) 222.65p -0.76%
Shell (SHEL) 2,884.00p -0.55%
BP (BP.) 487.70p -0.53%
Compass Group (CPG) 2,154.00p -0.32%