Broker comment weighed on specialty chemicals company Elementis PLC (LON:ELM) in mid-afternoon trading, with its shares falling nearly 4% to 268.5p after Berenberg cut its rating to ‘hold’ from ‘buy.’
The German bank said the downgrade was largely on a valuation basis following an appreciation in Elementis' share price, but also noted the strong US dollar is putting pressure on the company's key chromium market.
Housebuilder Bovis Homes Group PLC (LON:BVS) was also under pressure, down 2.7% to 798.5p after Deutsche Bank downgraded its recommendation to ‘hold’ from ‘buy’ to reflect "continued operational stutters" for the group.
The downgrade flew in the face of an otherwise update note on the UK housebuilders from Deutsche, which said it sees “appealing value” in the sector.
Other housebuilders took heart from that, as well as from an upbeat UK construction sector survey, with Barratt Developments PLC (LON:BDEV) up 3% at 479.6p, Taylor Wimpey PLC (LON:TW.) ahead 2.4% at 159.3p, and Persimmon PLC (LON:PSN) – which issues a trading update tomorrow – adding 3% at 1,816p, the top FTSE 100 riser.
Clothing retailer Next Plc (LON:NXT) was the worst blue chip performer, dropping 12% to 4,202p - the shares lowest level for more than three and a half years - after it downgraded its full-year profit guidance and warned of another challenging year ahead as sales over the key Christmas period fell 0.4% on last year.
The gloomy outlook also weighed on other blue chip retailers, with Marks & Spencer Group PLC (LON:MKS) shedding 4% at 329.7p and Primark-owner Associated British Foods PLC (LON:ABF) dropping 3.3% to 2,608p, while mid-cap department stores operator Debenhams PLC (LON:DEB) lost nearly 6% at 51.8p.
But amidst the gloom on the high street, discount retailer B&M European Value Retail PLC (LON:BME) experienced a much better Christmas, with its UK like-for-like revenue rising 7.2%, having been flat the year before.
B&M was the biggest FTSE 250 gainer, up 7.5% at 297.8p.
Production lift ...
Trinidad-focused energy explorer Range Resources Ltd (LON:RRL, ASX:RRS) was a strong performer late morning, jumping almost 20% higher to 0.43p after boasting of a leap in oil production.
Range told investors in an operational update that it exited 2016 with a production rate of 800 barrels of oil per day, which marks a 40% increase from the end of the prior year.
The company also revealed that its most recent well, GY 681, located on the Beach Marcelle field, was successfully drilled ahead of schedule after it encountered the main target and was cut off at 4,395 feet.
Elsewhere with commodity stocks, junior miner SolGold plc (LON:SOLG) gained nearly 8% at 26p after it said it has found copper-rich bornite mineralisation at Hole 19 at the Cascabel copper-gold porphyry project in Ecuador.
SolGold said the bornite - a copper rich sulphide mineral containing 63% copper, prized in commercial copper concentrates - has been mapped at the surface and in Hole 19.
The firm said preparations for further drill rigs to test the zone south east of the Alpala deposit at the project continue apace, as do its plans to list on the Toronto Stock Exchange and on London's Main Market.
10.05am ... Noteworthy gainer ....
Banknote authentication technology firm Spectra Systems Corporation (LON:SPSY) was the top market gainer early this morning, leaping 25% higher to 32p after it issued a bullish trading update.
The AIM-listed, US-based firm said it expects its profits for the year ended 31 December 2016 to “significantly exceed market expectations”. The group also expects its revenues to be ahead of forecasts.
Also among the top gainers, technology and life science investment firm FastForward Innovations Ltd (LON:FFWD) added 13% to 12.75p after revealing that its investee company, Vested Finance Inc has received a recommended takeover offer.
Vested Finance, an US education technology company trading under the brand Schoold, in which FastForward holds a 12% interest, has said it is in talks with an unnamed "strategic acquirer”.
FastForward also said that another of its investee companies, Leap Gaming is seeking a listing of its shares on a North American stock exchange.
In addition, the investment group said, Leap Gaming has confirmed that it has received an approach from an existing partner regarding a possible cornerstone investment in the business.
The AIM-listed firm said it has an approximate 41.15% in Leap Gaming, making it the largest shareholder of the US company.
Gas firm deflates ...
But among the fallers, gas storage company InfraStrata PLC (LON:INFA) was the biggest market casualty, dropping almost 18% to 0.58p after it warned its status as a going concern is at risk if further finance is not secured.
InfraStrata said it is in an "advanced stages of negotiation" over potential short-term debt funding, which would be sufficient to meet its minimum level of corporate costs to the end of 2017.
However, the company said to enable work on its front-end engineering design for the proposed Islandmagee gas storage in County Antrim, in Northern Ireland, it will need additional funding.