London shares fall on homebuilder drag, Croda sell-off

June 9 (Reuters) – British stocks fell on Friday after chemicals firm Croda sent the sector to its worst day in more than three years, while housing-related shares continued their downward spiral as they rose. tensions in the sector.

The FTSE 100 (.FTSE) The benchmark index lost 0.5%, while the FTSE 250 (.FTMC) The mid-cap index fell 0.1%. Both indices registered weekly falls of 0.6% and 0.3% respectively.

The FTSE 100 fell for a third week in a row as jitters over longer-standing higher global interest rates dampened risk appetite following surprise hikes by two major central banks earlier this week .

the chemical sector (.FTNMX552010) lost 7.7%, dragged down by a 12.5% ​​drop in the Croda International component (CRDA.L) after specialty chemicals group earnings warning.

“When a company has a track record of delivering products, the market gives a premium rating,” said Russ Mold, chief investment officer at AJ Bell.

“Which means that when something goes wrong, the stock price reaction can be particularly negative.”

the real estate (.FTUB3510) and the housing construction sectors (.FTNMX402020) declined 0.4% and 1% respectively as UK mortgage rates rose again with economists warning that rising borrowing costs would put the housing market under new pressure.

Moody’s Credit Rating Agency saying House prices in Britain are likely to fall by 10% over the next two years and a more severe downturn in the housing market could trigger a prolonged recession.

A strengthened pound added to losses in the export-heavy FTSE 100.

Among the individual engines, Network International (RED.L) advanced 5.6% after Brookfield Asset Management (BAM.TO) said he had come to a agreement with the payment provider for a cash offer of 2.2 billion pounds ($2.76 billion).

Friend Holdings (AMGO.L) shot up 123.1% by giving shareholder Michael Fleming a agreement to look for financing options for the troubled company.

Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Edited by Rashmi Aich, Anil D’Silva, and Nick Zieminski

Our standards: The Thomson Reuters Trust Principles.