28th Sep 2026 12:09
(Alliance News) - Stock prices in London were higher at midday on Monday, as UK housebuilders surged on a new government support scheme for first-time buyers, outweighing a sell-off in miners as metal prices fell.
The FTSE 100 index was up 21.36 points, 0.2%, at 10,716.75. The FTSE 250 was up 163.48 points, 0.7%, at 24,424.62, and the AIM all-share was down 0.38 points, 0.1%, at 785.98.
The Cboe UK 100 was up 0.2% at 1,065.48, the Cboe UK 250 was up 1.1% at 21,262.76, and the Cboe small companies was up 1.6% at 19,074.47.
In European equities on Monday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was down 0.1%.
Brent oil was trading at USD108.64 a barrel at midday Monday, up from USD106.21 late Friday.
Oil prices rallied above USD108 a barrel as optimism faded that progress could be made in talks between the US and Iran.
The rise in energy prices came as UK diesel prices reached a record high, surpassing the previous peak set in the wake of Russia's invasion of Ukraine in 2022.
The average price of a litre of diesel stood at 199.18p on Monday, according to figures compiled by the RAC, up 56.8p from 142.38p at the start of the US-Iran war on February 28.
The previous record was 199.09p per litre, reached in June 2022.
Diesel prices have risen steadily in recent weeks amid disruption to global supplies from the Russia-Ukraine conflict and renewed hostilities in the Middle East.
Russian diesel exports have fallen sharply after Ukrainian attacks on a number of the country's oil refineries, increasing demand for fuel from other diesel-exporting countries and pushing up wholesale prices.
Meanwhile, the US-Iran war has continued to disrupt global trade in refined oil and other petroleum products, with Iran's effective blockade of the Strait of Hormuz limiting fuel supplies.
Unleaded petrol prices have also climbed, averaging 174.13p per litre, up 41.3p since the start of the US-Iran war.
RAC Head of Policy Simon Williams said: "The average price of a litre of diesel has now reached the highest level in UK history, in what will be a financial blow to households and businesses that use their vehicles regularly."
On the FTSE 100, Barratt Redrow surged 12% after the UK government unveiled "Your First Home", a new equity loan programme aimed at improving affordability for first-time buyers purchasing new-build properties in England.
Eligible buyers will be able to purchase a home with a deposit of as little as 2.5%, alongside a government-backed equity loan worth up to 20% of the purchase price, initially interest-free.
Broker Berenberg said the 20% state contribution and low deposit requirement were the "absolutely critical components" of the scheme and could make a "very significant" positive difference to mortgage affordability.
Further details, including costs and implementation timelines, are expected in the UK government budget on October 28.
The announcement also lifted companies exposed to the housebuilding supply chain.
Howden Joinery Group rose 5.9% on expectations that stronger construction volumes could feed through to demand for kitchens and other building products, while DIY retailer Kingfisher gained 3.7%.
At the bottom of the blue-chip index, miners fell amid a widespread pullback in global metal prices, accounting for the five worst FTSE 100 performers. Gold was down nearly 3% from Friday, while silver was almost 5% lower.
Fresnillo tumbled 6.4%, Endeavour Mining fell 4.9%, Antofagasta lost 2.8%, Anglo American declined 2.7% and Glencore was down 2.2%.
Gold was quoted at USD4,159.20 an ounce at midday Monday, sharply lower than USD4,282.86 on Friday.
On the FTSE 250, more housebuilders were among the strongest performers.
Persimmon jumped 15%, Taylor Wimpey gained 13%, Bellway rose 13% and Vistry Group climbed 10%.
Genuit Group surged 14%, with the ventilation systems provider benefiting from read-across from the housebuilding sector.
Among smaller caps, clay and concrete products manufacturer Ibstock jumped 21% on expectations that increased housebuilding activity could boost demand following the announcement of the government's home-buying support scheme.
Housebuilder MJ Gleeson rose 17%.
Tribal Group climbed 19% after accepting an improved takeover offer from Main Capital.
The pound was quoted at USD1.3259 at midday Monday, higher than USD1.3238 at the London equities close on Friday. Against the euro, sterling rose to EUR1.1652 from EUR1.1616 a day prior.
The euro stood at USD1.1374, lower than USD1.1396 late Friday. Against the yen, the dollar was quoted at JPY157.09, down from JPY157.36.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.4%, the S&P 500 down 0.5% and the Nasdaq Composite down 1.0%.
The yield on the US 10-year Treasury was quoted at 5.22%, widening from 5.21%. The yield on the US 30-year Treasury was quoted at 5.53%, widening from 5.52%.
By Eva Castanedo, Alliance News senior economics reporter
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