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London open: FTSE gains but Vistry tanks as it warns on profits again
London stocks gained in early trade on Tuesday after a positive session on Wall Street, but Vistry tumbled as the housebuilder issued its third profit warning of the year.
At 0830 GMT, the FTSE 100 was up 0.4% at 8,132.98 in what was set to be a quiet half day of trade before the Christmas break.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “The FTSE 100 delivered a positive start to Christmas Eve trading, despite a week clouded by lacklustre economic data. Monday’s session saw the index close slightly lower after opening in the red, as final GDP figures revealed the UK economy stalled in the third quarter with no growth from the prior period and just a 0.9% annual rise.
“Adding to the wintry chill, second-quarter growth was revised down from 0.5% to 0.4%, stoking concerns about the UK’s slowing momentum heading into the new year.”
In equity markets, there was no Christmas cheer for Vistry shareholders as the housebuilder slashed profit guidance yet again, citing delays to expected year-end transactions and completions.
The company now expects adjusted pre-tax profit for the year to 31 December to be around £250m, down from previous guidance of £300m.
Vistry said a number of agreements with partners had taken longer to conclude and forecast these to be finished in fiscal 2025. It also pulled a number of proposed deals where the commercial terms on offer “were not sufficiently attractive”.
Britzman said: “This marks the group’s third profit downgrade of the year, a troubling trend driven by a string of poor management decisions and forecasting missteps that have left investors feeling far from jolly.
“Even a late cash influx in December couldn’t light up the season, with net debt now expected to close the year at around £200m – a far cry from the neutral footing investors had hoped for.
“As the year ends on a sour note, Vistry faces a long winter of rebuilding trust, leaving investors with little choice but to mull over their options.”
Persimmon, Taylor Wimpey and Barratt were the worst performers on the FTSE 100.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Banco Santander S.a. | +2.42% | +8.50 | 359.50 |
| 2 |  |
Carnival Plc | +1.77% | +32.50 | 1,871.00 |
| 3 |  |
South32 Limited | +1.56% | +2.60 | 169.80 |
| 4 |  |
Pershing Square Holdings Ltd | +1.49% | +56.00 | 3,826.00 |
| 5 |  |
Vodafone Group Plc | +1.23% | +0.82 | 67.30 |
| 6 |  |
Intermediate Capital Group Plc | +1.17% | +24.00 | 2,074.00 |
| 7 |  |
Smith (ds) Plc | +1.02% | +5.50 | 543.50 |
| 8 |  |
Standard Chartered Plc | +1.00% | +9.80 | 990.60 |
| 9 |  |
Marks And Spencer Group Plc | +0.95% | +3.60 | 382.30 |
| 10 |  |
Wise Plc | +0.86% | +9.00 | 1,054.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bp 8%pf | -2.89% | -4.00 | 134.50 |
| 2 |  |
Bp 9% 2nd Prf | -2.59% | -4.00 | 150.50 |
| 3 |  |
Bt Group Plc | -1.14% | -1.65 | 143.15 |
| 4 |  |
Barratt Redrow Plc | -0.90% | -3.90 | 430.70 |
| 5 |  |
Ashtead Group Plc | -0.66% | -33.00 | 4,945.00 |
| 6 |  |
Beazley Plc | -0.37% | -3.00 | 815.50 |
| 7 |  |
Experian Plc | -0.32% | -11.00 | 3,454.00 |
| 8 |  |
Scottish Mortgage Investment Trust Plc | -0.32% | -3.00 | 944.00 |
| 9 |  |
Flutter Entertainment Plc | -0.29% | -60.00 | 20,850.00 |
| 10 |  |
Aib Group Plc | -0.23% | -1.00 | 435.50 |
US close: Stocks push higher despite mixed economic data
US stocks finished Monday’s session higher despite a batch of mixed economic data, with the Dow rising for the third straight day as indices continue their attempted recovery from last week’s sell-off.
With little to no corporate news moving blue chip stocks during the session, the focus was on economic data, which showed declines in both durable-goods orders and consumer confidence and an increase in new home sales.
Nevertheless, Wall Street trading was expected to be somewhat muted this week, with the NYSE shutting up shop early on Tuesday for the festive break and not opening again until Thursday.
The Dow gained 0.2% to 42,096.65, inching higher for the third consecutive session following a 10-day losing streak which saw the index drop 6% of its value.
The S&P 500 and Nasdaq both rose for the second straight day, gaining 0.8% and 1.0% respectively.
Economic data in focus
Economic data was mixed on Monday, starting with US durable-goods orders which fell for the third time in four months. Orders were down 1.1% in November, after a 0.8% gain in October, worse than the 0.4% decline expected by the market.
Elsewhere, consumer sentiment in the US unexpectedly declined in December, pulling back after strong gains over the previous two months as concerns about the future outlook returned. The Conference Board’s closely followed consumer confidence index fell to 104.7 this month from 112.8 in November, surprising analysts who had forecast a small improvement to 112.9.
Meanwhile, new home sales rose by 5.9% to 664,000 in November, slightly ahead of the 650,000 consensus estimate, but only partially rebounding after the revised 14.8% slump registered the month before.
In other news, the Chicago Federal Reserve’s national activity index increased to -0.13 in November, up from a downwardly revised -0.50 reading in October.
M&A news moves Xerox, Nordstrom, Despegar.com
Xerox Holdings said on Monday that it has agreed to buy printer maker Lexmark International in a deal $1.5bn deal, causing the former to surge nearly 13%. Xeros said the deal will strengthen its core print portfolio and build a broader global print and managed print services “business better suited to meet the evolving needs of clients in the hybrid workplace”.
Department-store chain Nordstrom announced a deal to sell the company back to its founding family and Mexican peer El Puerto de Liverpool, valuing the company at $6.25bn. Under the terms of the deal, shareholders will receive $24.25 a share in cash, a 42% premium to the closing price on 18 March – the day before M&A speculation began – though this was slightly below Friday’s closing price.
Latin America-focused travel agent Despegar jumped 34% after Prosus said it would buy the Argentina-based company for $1.7bn.
Tuesday newspaper round-up: Prepayment meters, Morrisons, BMW
Millions of vulnerable UK households on prepayment meters could see their energy bills consume almost a third of their incomes this winter. As temperatures drop across the country, the Resolution Foundation said a combination of higher gas and electricity prices and the typical seasonal increase in energy usage over the colder months would hit poorer families most. – Guardian
Morrisons shoppers have been left unsure whether their Christmas orders will arrive on time after the supermarket chain was hit by IT problems, prompting the retailer to offer discounts. The supermarket chain is giving loyalty card holders 10% off an entire shop on Monday and on Christmas Eve after a glitch hit the promotional scheme, and it discounted prices on some items for all shoppers. – Guardian
BMW has admitted to selling more than 100 high-end cars to Russians despite international sanctions. The German carmaker confirmed a report by Business Insider that revealed premium cars had been sold to Russian buyers, despite an embargo on car exports to the country introduced after the Kremlin launched its full-scale invasion of Ukraine. – Telegraph
The drug technology company BenevolentAI is looking at relisting from 2026 — and would consider floating in London. BenevolentAI announced plans this month to delist from Euronext Amsterdam alongside further job losses and cost-cutting after its founder, Ken Mulvany, regained control of the board following an activist campaign. – The Times
