FILE PHOTO: The London Stock Exchange offices in the City of London, Britain

Banks, Miners Pull Down FTSE 100; Entain Top Gainer

The owner of Ladbrokes and Coral brands climbed 2.2% after it reported an 11% rise in first-half net gaming revenue and said it was doubling investment in its game development studios.

The FTSE 100 dropped 1.1%, dragged down by a 1.9% fall in big banks as they tracked weaker bond yields. Precious metal miners and homebuilders fell 1.7% and 1.5%, respectively.

“Miners and banks are the principal sectors weighing on the index, suggesting that investors have started to worry again about the strength of the economic recovery,” said Russ Mould, investment director at AJ Bell.

“If the economic outlook is not as strong, then investors start to go off banks for fear that it will be harder for them to push up earnings.”

Homebuilder Persimmon Plc slipped 2.2% even after it reported higher half-year revenue and said it expected housing demand to remain robust.

Meanwhile, an industry survey showed fewer homes were put up for sale last month and buyer demand grew less fast ahead of the end of a tax break on property purchases.

The FTSE 100 has risen 9.3% so far this year, primarily led by gains in banks, materials and energy stocks. However, it has largely underperformed its developed market peers over risks arising from a rise in local coronavirus infections.

The domestically focussed mid-cap index was down 0.7%.

Among stocks, Deliveroo surged 4.6% after it said orders jumped 88% during the June quarter, although the food delivery firm tempered its outlook for annual profit margins.

Discount retailer B&M fell 2.8% after it reported a drop in underlying sales in its latest quarter, reflecting a very tough comparison with the same period last year when shoppers stocked up for the first COVID-19 lockdown.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Shashank Nayar in Bengaluru; Editing by Subhranshu Sahu)