Britain’s FTSE 100 slumped to a three-month low at the closes on Friday, weighed down by a sharp drop in homebuilder Vistry after a profit warning, and by China-exposed stocks reacting to disappointing stimulus updates from Shanghai.
The blue-chip FTSE 100 fell 0.8%, briefly declining by around 1% to its lowest point since August 8. This marks the index’s third consecutive weekly loss.
Vistry shares plunged nearly 16%, the largest decline among FTSE 100 constituents, after issuing its second profit warning in a month due to persistent cost pressures in its South Division.
This drop dragged the FTSE 350 housebuilder index to its lowest level in nearly a year, following recent concerns from peer Persimmon about rising costs for 2025 projects.
AJ Bell investment director Russ Mould commented:
“Vistry’s update highlights the resurgence of build cost inflation in the construction sector. Rebuilding market confidence will be challenging, especially as the industry’s underlying fundamentals appear increasingly unstable.”
Additionally, stocks with exposure to China’s market, including luxury brand Burberry and miners Antofagasta, Rio Tinto, and Glencore, also faced declines.
