Business

London shares slip as house builders lose ground

Market trader (file picture) Image copyright Getty Images

(Close): Shares on the London stock exchange fell back slightly on Monday and the 100 share index closed down 30 points at 6,694 - a fall of just 0.45%.

The biggest riser was the giant mining group Anglo American, up 18p at 849p.

The biggest faller was the house builder Taylor Wimpey, whose shares fell 7p to 147p.

Shares in airline group IAG, which owns BA and Iberia, dropped despite Qatar Airways raising its stake in the company from just under 16% to 20%.

Shares in IAG were down 5p at 401p, a drop of just over 1% on the day.

Qatar Airways' move saw it take advantage of the recent fall in IAG's share price.

IAG's share price has dropped by a quarter since the UK's referendum vote to leave the EU.

The fall in the value of the pound has also made UK assets cheaper for buyers from abroad.

Qatar Airways chief executive Akbar al-Baker said: "The recent market valuation of one of the world's leading airline groups has provided what we believe is an attractive opportunity to increase our shareholding in IAG."

"We continue to be highly supportive of IAG's strategy and management team and we do not intend to increase our percentage shareholding further, unless there are material changes to the current situation."

Oil shares dropped with Shell down by 3% and BP down 2%. Among the banks, both Royal Bank of Scotland and Barclays shares fell back, closing 1.7% and 2% lower respectively.

On the foreign exchanges, the pound fell after a survey suggested that activity in the manufacturing sector contracted sharply last month.

Sterling was 0.2% lower against the dollar at $1.32 and fell 0.2% against the euro to €1.186.