FTSE 250 movers: Kainos, housing stocks lead the decline

31st Oct 2024 14:58

(Sharecast News) - London's second-tier index was falling sharply on Thursday afternoon, with heavy falls from Kainos and the housing sector providing a big drag.

Kainos tumbled as the IT services company it said full-year revenues would be "moderately below" current market consensus. It said its Digital Services and Workday Services divisions continue to be affected by the macroeconomic environment and related delays in client decision-making.

Housebuilders were under the cosh as investors reacted to Wednesday's highly anticipated UK autumn budget, with Bellway and Crest Nicholson falling sharply, along with building suppliers Marshalls and Howden Joinery.

Despite expectations ahead of the event, the chancellor did not cancel a planned cut to stamp duty thresholds in March next year, and increased the amount that second-homeowners would have to pay. Meanwhile, the general increase in UK government borrowing indicated by the rest of the budget could mean interest rates stay higher for longer.

Russ Mould, investment director at AJ Bell, said higher rates "are not good for housebuilders and retailers hoping for reduced pressures on household finances, hence why those sectors were in the red today".

Spectris was weaker after saying it expects to deliver full-year adjusted operating profit of around £200m, which is below consensus expectations.

Online grocery retailer Ocado Group edged lower after appointing former Microsoft exec Adam Warby to replace chair Rick Haythornthwaite. Warby, who is currently the chair of Nasdaq-listed executive search and management consultancy Heidrick & Struggles International, will join the company on 1 December.

Luxury fashion brand Burberry gained after an upgrade to 'buy' at both HSBC and Bernstein, after the stock has nearly halved so far this year. HSBC gave the stock a 1,000p target price, while Bernstein predicted a 930p level, compared with Wednesday's closing price of 760.2p.

FTSE 250 - Risers

TBC Bank Group (TBCG) 2,740.00p 4.18%

Aston Martin Lagonda Global Holdings (AML) 115.20p 3.88%

W.A.G Payment Solutions (WPS) 80.00p 3.09%

Carnival (CCL) 1,570.50p 3.05%

Trainline (TRN) 384.80p 2.29%

Burberry Group (BRBY) 777.40p 2.26%

PPHE Hotel Group Ltd (PPH) 1,235.00p 2.07%

North Atlantic Smaller Companies Inv Trust (NAS) 3,790.00p 1.88%

Bank of Georgia Group (BGEO) 4,145.00p 1.47%

Investec (INVP) 596.50p 1.27%

FTSE 250 - Fallers

Kainos Group (KNOS) 743.00p -13.10%

Bellway (BWY) 2,812.00p -7.80%

Crest Nicholson Holdings (CRST) 168.40p -6.34%

SThree (STEM) 351.00p -6.15%

Workspace Group (WKP) 556.00p -6.08%

Howden Joinery Group (HWDN) 835.00p -6.02%

4Imprint Group (FOUR) 5,100.00p -5.56%

Shaftesbury Capital (SHC) 136.10p -5.49%

Marshalls (MSLH) 337.00p -5.47%

PZ Cussons (PZC) 81.50p -5.45%