Barratt slide drags Footsie into the red

Market report Perry Gourley

The FTSE 100 was dragged into the red, weighed down by stocks including Barratt Developments following a tepid outlook by the UK housebuilder.

London’s blue chip index closed lower by 0.25 per cent, or 18.79 points, at 7,354.13, with Barratt emerging as its worst performer after falling 4.5 per cent, or 28.5p, to end the day at 595.5p.

While the UK’S biggest housebuilder booked a 12.1 per cent increase in full-year pre-tax profit, it was not enough to charm investors.

David Madden, a market analyst at CMC Markets UK, said: “Barrett Developments posted a strong set of figures today but it wasn’t enough to satisfy traders as the forecast was only lukewarm.

“The homebuilder expects ‘modest’ growth next year because higher stamp duty and slightly lower demand in the London market prompted the company to issue a cautious outlook.”

Berkeley Group also fell 95p to 3,657p after renewing its warning over the impact of Brexit uncertainty on London’s property market. The housebuilder was also dealt a blow after 16 per cent of investors voted against pay plans for top bosses amid backlash over a £92 million windfall for six executives.

Sports Direct rose 5.4p to 389.6p as investors digest news from the company’s annual general meeting. Independent shareholders backed chairman Keith Hellawell to stay in post despite mounting criticism. The former West Yorkshire Police chief constable and government drugs tsar saw 53.24 per cent of shareholders vote in favour of his reappointment while a significant tranche – 46.8 per cent – opposed. The oil services firm has been awarded a contract worth more than $700 million by Sakhalin Energy Investment for a new facility. The drugs firm was the worst performer in the FTSE 250 as it reported a widening pretax loss for the first half of 2017, due to merger costs.