A leading brickmaker today said demand had slowed amid the impact of economic and political uncertainty.
Ibstock’s construction industry warning came as the British Retail Consortium said pre-Budget fears were a factor in September’s weaker footfall.
Meanwhile, recruitment firm Hays told investors it expects conditions to remain tough over the rest of its financial year.
FTSE 100 Live Friday
- Ibstock demand weakens
- Hays outlook uncertain
- Retail footfall slips
Market update: FTSE 100 fades on defence weakness, Ibstock down 6%
10:24 , Graeme EvansProfit-taking in the gold and defence sectors and a retreat for £200 billion-valued AstraZeneca today meant the FTSE 100 index ended a record week lower.
London’s top flight reversed 12.86 points to 9496.54, having peaked at an intraday high of 9565.49 on Wednesday.
Gold’s return below $4000 an ounce ensured that top-performing blue chips Endeavour Mining and Fresnillo fell 3% - off 118p to 3060p and 78p to 2316p.
Defence-focused stocks traded lower on the back of developments in the Middle East, with Babcock International off 3% or 32p to 1222p and BAE Systems down 42p at 1973p. Rolls-Royce dipped 22p to 1133p.
The strong recent run for AstraZeneca, which has taken its market valuation to £200 billion, also paused with a decline of 50p to 12,890p.
On the risers board, Diageo lifted 29p to 1820.5p and Unilever added 58p to stand at 4479p. The best performing stock was the accounting software business Sage, which advanced 3% or 29p to 1141p.
In the FTSE 250 index, Hays shares rallied 5% or 2.85p to 60.5p after the recruitment firm reported an 8% first quarter drop in net fees but said that activity was back at pre-summer levels .
it is braced for conditions to remain challenging across the financial year to June.
Panmure Liberum made no change to its forecasts or 55p price target, believing that it is still too early to call an inflection point.
The shares were 53p in September, having fallen to a three-decade low on the back of a protracted three-year downturn in trading conditions.
Ibstock shares slumped 6% or 8.6p to 125.2p after the brickmaker blamed the near-term economic and political backdrop for weaker than expected demand.
Second half earnings are likely to be similar to the first half., meaning a full-year result of about £70 million. This compares with the previkous City consensus for a figure similar to last year’s £79 million.
Ibstock said customers became more cautious as the third quarter progressed, with these conditions now assumed to continue through the remainder of the year.
City bank UBS, which has a price target of 210p, said recent investments meant the company was well placed for when markets recover.
Princes IPO gets go ahead
09:19 , Graeme EvansTinned tuna and Napolina firm Princes Group has confirmed it aims to list on the London market later this month.
The almost 150-year-old firm, which is owned by Italian food business Newlat, said it is set to make its stock market debut by the end of October.
The group – which has headquarters in Liverpool’s landmark Liver Building – also owns Crisp N Dry and licenses brands such as Branston.
The listing move, which is reportedly expected to value the business at about £1.5 billion, will provide firepower to fund further acquisitions.
Gold miners fall in weaker FTSE 100, Hays shares rise
08:30 , Graeme EvansDeclines of about 1% for heavyweights BP and AstraZeneca have left the FTSE 100 index lower for a second successive session, down 13.57 points to 9495.83.
Endeavour Mining dropped 4% or 122p to 3056p and Fresnillo weakened 76p to 2318p after the price of gold fell back below the $4000 threshold.
Accounting software group Sage led the FTSE 100 with a rise of 2% or 21p to 1133p.
In the FTSE 250, Hays rose 3% or 1.5p to 59.2p and brickmaker Ibstock fell 8% or 10.6p to 123.2p following their trading updates.
Hays net fees fall 8%, braced for another tough year
07:50 , Graeme EvansRecruitment firm Hays today said net fees fell 8% in the quarter to 30 September, including a 9% decline in its UK and Ireland division.
Given ongoing macroeconomic uncertainty, it is braced for near term market conditions to remain challenging over the remainder of the financial year to June.
It said temporary and contracting net fees decreased by 5% with activity levels and volumes rebuilding through the quarter in line with normal seasonal trends. Permanent net fees declined 13%.
Chief executive Dirk Hahn said: "Despite ongoing macroeconomic uncertainty and challenging Permanent conditions, we experienced a normal recovery in post-summer activity levels and trading was stable on a seasonally adjusted basis through the quarter.”
Ibstock reports weaker demand amid near-term uncertainty
07:31 , Graeme EvansBuilding products firm Ibstock today cut guidance after reporting weaker than expected demand due to heightened economic and political uncertainty.
The third quarter trends in the core markets of its clay and concrete businesses mean second half earnings are likely to be similar to the first half.
Ibstock said customers became more cautious as the quarter progressed, with these conditions now assumed to continue through the remainder of the year.
Chief executive Joe Hudson said: “With clear, long term structural imperatives for residential construction growth, it is disappointing that additional near term headwinds are impacting momentum in our markets in the latter part of the year.”
Budget caution hits retail footfall - BRC
07:11 , Graeme EvansRetail footfall declined by 1.8% in September compared with a year ago, the British Retail Consortium (BRC) said today.
This was more than the 0.4% decline registered in August amid the consumer confidence impact of a potential tax-rising Budget.
Tube strikes in London, heavy rainfall in the first half of September and Storm Amy towards the end of the month exacerbated the decline, the BRC added.
FTSE 100 seen lower, Hang Seng index falls 1.6%
07:03 , Graeme EvansAsia markets are sharply lower, with the Nikkei 225 down 1% and the Hang Seng index down by about 1.6%.
The selling follows a weak handover from Wall Street, where the Dow Jones Industrial Average lost 0.5% and the S&P 500 eased 0.3%.
The FTSE 100 index is seen falling by 0.2%, adding to yesterday’s decline of 0.4% or 39.47 points to 9509.40 amid a poor session for HSBC and Lloyds.
The price of gold is at $3972 an ounce and Brent Crude at $65.02 a barrel.
