London midday: Stocks shrug off weak data as FTSE closes in on new record

10th Apr 2015 11:44

Weaker-than-expected UK data wasn't enough to stop shares from advancing on Friday, as decent gains in the housebuilding sector pushed the FTSE 100 back towards its record high.The Footsie was up 0.36% at 7,040.54 by midday.The index's previous closing high of 7,037.67 was set on 23 March, while the intraday record of 7,065.08 was reached the following day.British industrial production grew by just 0.1% in February after a 0.3% decline in January, which economists said indicated that UK economic growth slowed in the first quarter. The consensus forecast was for growth of 0.3%.Meanwhile, UK construction output fell 0.9% in February after a 2.5% drop in January, as uncertainty surrounding the general election weighed on sentiment. Analysts had called for a 2% increase."The overall negative trend of this data led to fears of a weakened UK GDP for the first quarter of 2015, some indication of which should be provided this afternoon when the NIESR GDP estimate is released," said Spreadex analyst Connor Campbell.Overnight, data showed that the annual rate of Chinese inflation remained steady at 1.4% in March, surprising analysts who expected a slowdown to 1.3%.Shire jumps, housebuilders rise after upgradeUK pharma group Shire topped the FTSE 100 on Friday morning after the US drug regulator said it will fast-track the company's application for its 'Lifitegrast' dry-eye disease treatment.Housebuilders were among the best performers as Jefferies upgraded ratings for stocks across the sector, including Barratt Developments, Taylor Wimpey, Persimmon, Bellway, Crest Nicholson and Redrow. Jefferies said it has turned more positive on the sector after recent data "point[ed] to a stronger pre-election housing market than we had anticipated".In contrast, mining stocks were trading with losses, such as Anglo American, Rio Tinto and Glencore. Rio Tinto was in focus on reports that its Canadian iron ore division will cut 150 jobs, while Glencore said it would be closing its Singapore coal sales desk as it consolidates its Australian business.UK wine merchant Majestic Wine fell as investors reacted to the announcement that it will buy Naked Wines, a customer funded international online wine business for up to £70m in a reverse takeover. As part of the deal, Naked's founder and chief executive Rowan Gormley will become boss of the enlarged group.Recruiter Hays underwhelmed despite saying it now expects to deliver strong operating profit growth for the full year after a decent third quarter. Annual growth in net fees, however, eased to 5% from 6% in the first half.Shares in Reckitt Benckiser rose after receiving a boost by analysts at UBS who upgraded their rating on the stock to 'buy' from 'hold'. The bank said Reckitt is "one of the two core holdings in the European household and personal care space."Market MoverstechMARK 3,256.42 +0.67%FTSE 100 7,040.54 +0.36%FTSE 250 17,803.42 +0.50%FTSE 100 - RisersShire Plc (SHP) 5,715.00p +5.44%Aberdeen Asset Management (ADN) 503.50p +3.81%ITV (ITV) 270.00p +3.33%Barratt Developments (BDEV) 556.00p +2.77%Taylor Wimpey (TW.) 165.10p +2.42%3i Group (III) 506.00p +1.85%Aggreko (AGK) 1,569.00p +1.69%Rolls-Royce Holdings (RR.) 964.00p +1.47%Direct Line Insurance Group (DLG) 329.50p +1.42%Randgold Resources Ltd. (RRS) 4,808.00p +1.31%FTSE 100 - FallersRio Tinto (RIO) 2,820.00p -1.14%Associated British Foods (ABF) 2,985.00p -0.96%Anglo American (AAL) 1,014.50p -0.93%Ashtead Group (AHT) 1,051.00p -0.76%Hikma Pharmaceuticals (HIK) 2,212.00p -0.72%Lloyds Banking Group (LLOY) 79.21p -0.59%Glencore (GLEN) 287.20p -0.57%Imperial Tobacco Group (IMT) 3,180.00p -0.53%Antofagasta (ANTO) 735.50p -0.41%SSE (SSE) 1,554.00p -0.38%FTSE 250 - RisersCountrywide (CWD) 553.00p +6.24%Ocado Group (OCDO) 376.80p +4.35%Evraz (EVR) 208.30p +4.15%Soco International (SIA) 179.40p +3.70%Indivior (INDV) 207.50p +3.49%Rotork (ROR) 2,660.00p +3.10%Bovis Homes Group (BVS) 1,013.00p +2.95%Ted Baker (TED) 2,786.00p +2.80%Bellway (BWY) 2,067.00p +2.58%Renishaw (RSW) 2,536.00p +2.46%FTSE 250 - FallersVedanta Resources (VED) 519.50p -3.62%Poundland Group (PLND) 333.70p -3.16%Nostrum Oil & Gas (NOG) 602.50p -2.43%Imagination Technologies Group (IMG) 197.10p -1.94%esure Group (ESUR) 215.50p -1.60%Millennium & Copthorne Hotels (MLC) 581.50p -1.52%Just Retirement Group (JRG) 173.30p -1.48%Rathbone Brothers (RAT) 2,164.00p -1.41%Daejan Holdings (DJAN) 5,865.00p -1.35%Regus (RGU) 235.20p -1.34%