FTSE 100 movers: Banks, defence firms rally; housebuilders fall

(Sharecast News) - London's FTSE 100 was up 0.3% at 10,472.70 in afternoon trade on Monday. NatWest was the top riser on the index, having slumped on Friday despite reporting a better-than-expected increase in full-year profits and lifting performance targets. Banks in general were firmer, with Barclays and Lloyds also up.

Defence firms Melrose, Babcock and BAE Systems all gained following a report that Downing Street is considering making a significant increase in defence spending. According to the BBC, the government is mulling over the idea of meeting an existing spending target earlier than planned at a potential cost of billions of pounds.

On the downside, housebuilders Barratt Redrow and Berkeley Group were under the cosh after the latest data from Rightmove. It showed that house price growth stalled in February after the strongest increase in over a decade the previous month, though the outlook for demand still remains bright as affordability continues to improve.

The average price of a newly listed home for sale was £368,019 in February, down £12 over the month (-0.0%) following a 2.8% surge in January.

The previous month's jump was the largest-ever increase for a January and the strongest monthly rise since June 2015, as confidence rebounded after taking a hit due to the Autumn Budget.

However, high choice of homes for sale and steadying buyer activity have kept a lid on prices this month.

Barratt was also knocked lower by a downgrade to 'add' from 'buy' at Peel Hunt.



FTSE 100 - Risers

Melrose Industries (MRO) 673.60p 4.92% NATWEST GROUP (NWG) 606.00p 4.45% Metlen Energy & Metals (MTLN) 36.60p 3.83% BAE Systems (BA.) 2,027.00p 3.00% Babcock International Group (BAB) 1,335.00p 2.77% Barclays (BARC) 464.80p 2.38% easyJet (EZJ) 491.10p 2.04% Land Securities Group (LAND) 656.00p 1.86% Prudential (PRU) 1,087.50p 1.73% 3i Group (III) 3,495.00p 1.72%

FTSE 100 - Fallers

Mondi (MNDI) 923.20p -3.29% Barratt Redrow (BTRW) 377.30p -2.98% Smurfit Westrock (DI) (SWR) 3,641.00p -2.96% Glencore (GLEN) 484.10p -2.10% Rio Tinto (RIO) 7,040.00p -2.05% SSE (SSE) 2,593.00p -1.82% Berkeley Group Holdings (The) (BKG) 4,354.00p -1.80% Imperial Brands (IMB) 3,229.00p -1.79% Fresnillo (FRES) 3,796.00p -1.61% Croda International (CRDA) 3,009.00p -1.54%