Market round-up: Housebuilders weigh down FTSE 100 as construction PMI slumps

The FTSE 100 dipped on Wednesday 2 March, after an initial rally with ITV among the companies weighing down the blue-chip sector, along with house-builders, after disappointing macro data.

The Markit PMI showed that construction growth hit its lowest point since April 2015, when the industry was uncertain ahead of the General Election in May. The purchasing managers' index scored 54.2 in February, down from 55.0 in January.

Housing stocks Persimmon, Berkeley, Barratt Developments and Taylor Wimpey were all down after the PMI numbers. The house builders have all seen a surge over the last few months, as house prices continue to increase across the UK.

"Recent sharp falls in business confidence, partly reflecting economic uncertainty brought about by the EU referendum, are subduing the recovery in construction activity," said Samuel Tombs, chief UK economist at Pantheon Macro.

"The PMI fell to its lowest level since June 2013, excluding the short-lived dip in the month before the general election, reflecting a further moderation of growth in both residential and commercial work."

ITV's share price fell more than 4% on Wednesday, despite a jump in sales. In the 12 months to 31 December, the FTSE 100 group said total external revenue grew 15% year-on-year to £2.97bn ($4.15bn, €3.81bn).

However, shareholders turned away from the media company's relatively weak performance in advertising. ITV's management also said it is increasingly looking for alternative revenues to be less dependent on advertising.

On the FTSE 250, Virgin Money was one of the biggest risers, after the company reported a solid set of results. In the 12 months to 31 December 2015, pre-tax profit rose to £160.3m from £104.8m a year earlier, while gross mortgage lending rose 29% year-on-year to £7.5bn.

FTSE 100 biggest risers

Anglo American +6.68%
Aberdeen Asset Management +5.87%
Standard Chartered +5.32%
BHP Billiton +5.13%
Glencore +3.75%

FTSE 100 biggest fallers

Intertek -4.63%
Berkeley -3.94%
ITV -3.49%
Persimmon -3.49%
BT -2.86%

FTSE 250 biggest risers

Vendata Resources +12.71%
Amec Foster Wheeler +9.81%
Aldermore +7.15%
Virgin Money +7.01%
Laird +6.38%

FTSE 250 biggest fallers

Entertainment One -13.82%
Poundland -6.23%
Dignity -6.21%
Centamin -5.23%
Bellway -4.62%