London open: Stocks edge up as investors mull Rightmove data

18th Nov 2024 08:11

(Sharecast News) - London stocks edged up in early trade on Monday as investors mulled the latest house price research from Rightmove and looked ahead to earnings from US tech giant Nvidia this week.

At 0900 GMT, the FTSE 100 was up 0.2% at 8,079.56.

Richard Hunter, head of markets at Interactive Investor, said markets in the UK "made a positive if slightly unconvincing start in early trade" given the global backdrop.

He noted: "The FTSE 100 is now up by 4.5% so far this year and the FTSE 250 4.2%, with gains from earlier in the year having been eclipsed by the rush for growth stocks in other jurisdictions, most notably with investors looking to ride the coattails of the technology surge in the US and more latterly chasing the Trump trade.

"The UK's reputation as a more stable, and even defensive investment destination tends to weigh against prospects in this kind of environment, despite the increasingly accepted acknowledgement that valuations are historically cheap against most other developed markets."

Looking ahead to the rest of the week, attention will turn to Nvidia's third-quarter results on Wednesday.

On home shores, data released earlier by Rightmove showed that house prices eased in November as uncertainty around the Budget weighed on demand.

According to the latest house price index, average new selling asking prices fell by 1.4% month-on-month in November, to £366,592. That was steeper that the 0.8% drop usually seen at this time year of year.

Year-on-year, prices rose 1.2%.

However, Rightmove said that despite the government's Budget at the end of October having a "dampening" effect, overall market activity was stronger than last year.

The number of agreed sales was up 26%, while the number of new sellers coming to market was 6% higher.

There were also early signs of a further uptick in demand following the Bank of England's decision to trim interest rates at the start of November, the second reduction so far this year.

Tim Bannister, Rightmove's director of property science, said: "There's been a lot of news to digest for homeowners over the last few weeks, and it appears that the market may still be chewing it over.

"We had been seeing a drop-off in buyer demand, both in the lead up to the Budget and in its immediate aftermath, as it was confirmed that there will be an increase to stamp duty charges.

"However, a second Bank Rate cut and a boost of optimism regarding 2025 appear to have reversed this trend at least temporarily."

Rightmove currently expects new seller asking prices to rise by 4% in 2025, its highest prediction since 2021, as lower mortgage rates help release pent-up housing demand.

Bannister added: "The big picture of market activity remains positive when compared to the quieter market at this time last year. This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improved affordability for more of the mass market."

In equity markets, aerospace company Melrose shot to the top of the FTSE 100 as it held full-year guidance after a rise in revenues driven by aftermarket demand in its engines division, particularly in defence.

Revenue rose 7% in the four months to October 31, with aftermarket up 32% year on year although original equipment volume growth remained constrained by industry-wide supply chain issues, Melrose said in a trading statement.

The company still expects adjusted operating profit £550m - £570m, adding that it was on track to hit a £700m profit target in 2025.

Heavily-weighted miners were among the top performers, with Rio Tinto, Glencore and Anglo all up.

Safety equipment maker Halma ticked higher as it announced the acquisition of Lamidey Noury Medical, a Paris-based manufacturer of medical technology devices, for €50m.

Elementis rallied as it announced that chief executive officer Paul Waterman would step down after nine years in the role, with a transition planned no later than its annual general meeting in April.

Market Movers

FTSE 100 (UKX) 8,079.56 0.20%

FTSE 250 (MCX) 20,522.12 0.22%

techMARK (TASX) 4,606.07 0.26%

FTSE 100 - Risers

Melrose Industries (MRO) 530.80p 8.44%

Intermediate Capital Group (ICG) 2,026.00p 1.40%

Standard Chartered (STAN) 956.60p 1.40%

GSK (GSK) 1,317.00p 1.23%

Anglo American (AAL) 2,308.00p 1.21%

Vodafone Group (VOD) 70.32p 1.12%

Rio Tinto (RIO) 4,857.50p 1.10%

Smith (DS) (SMDS) 570.00p 1.06%

United Utilities Group (UU.) 1,096.50p 1.06%

Entain (ENT) 748.60p 1.05%

FTSE 100 - Fallers

B&M European Value Retail S.A. (DI) (BME) 367.60p -2.85%

Land Securities Group (LAND) 596.00p -1.49%

Vistry Group (VTY) 690.50p -1.22%

AstraZeneca (AZN) 9,878.00p -1.00%

British Land Company (BLND) 376.40p -1.00%

Convatec Group (CTEC) 246.40p -0.96%

Taylor Wimpey (TW.) 130.35p -0.95%

London Stock Exchange Group (LSEG) 10,570.00p -0.66%

Coca-Cola HBC AG (CDI) (CCH) 2,736.00p -0.65%

Rentokil Initial (RTO) 398.20p -0.65%

FTSE 250 - Risers

Wood Group (John) (WG.) 53.20p 6.40%

Burberry Group (BRBY) 934.80p 3.16%

Hochschild Mining (HOC) 216.00p 3.10%

Centamin (DI) (CEY) 144.90p 2.99%

Elementis (ELM) 138.60p 2.67%

TP Icap Group (TCAP) 263.00p 2.33%

Discoverie Group (DSCV) 675.00p 2.27%

Man Group (EMG) 210.20p 1.74%

Lancashire Holdings Limited (LRE) 615.00p 1.65%

QinetiQ Group (QQ.) 430.40p 1.61%

FTSE 250 - Fallers

Patria Private Equity Trust (PPET) 528.00p -2.76%

PureTech Health (PRTC) 167.20p -2.56%

Foresight Environmental Infrastructure Limited (FGEN) 76.30p -2.30%

BlackRock World Mining Trust (BRWM) 500.00p -1.77%

Syncona Limited NPV (SYNC) 105.00p -1.69%

Harworth Group (HWG) 165.00p -1.20%

Workspace Group (WKP) 540.00p -1.10%

Rathbones Group (RAT) 1,680.00p -1.06%

Bankers Inv Trust (BNKR) 114.20p -1.04%

Caledonia Investments (CLDN) 3,380.00p -1.02%wood grou