The FTSE 100 came under a lot of pressure last month as fears of incoming energy inflation flooded the stock market. Yet despite its recent downward trajectory, the UK’s flagship index is actually up since the start of the year. And some of its constituents are already proving to be big winners even with all the external uncertainty.
Let’s have a look at the Footsie’s top risers and fallers over the first quarter of 2026.
Major ups and downs
So the five biggest risers over the first three months of the year have all made gains of 27% or more. And the list includes:
- Beazley (+55%).
- Schroders (+41%).
- Glencore (+39%).
- BP (+34%).
- BAE Systems (+27%).
But at the other end of the equation, there have been some painful losses for shareholders of the five worst performers…
- Barratt Redrow (LSE:BTRW) (-32%).
- easyJet (-29%).
- Berkeley Group Holdings (-27%).
- Entain (-25%).
- ICG (-24%).
…and to rub more salt into the wound, easyJet shares even lost their FTSE 100 status during the quarter, tumbling into the FTSE 250.
Yet as experienced investors know, some of the best buying opportunities can hide among some of the least popular stocks. With that in mind, let’s zoom in on the FTSE 100’s biggest faller: Barratt Redrow.
What’s going on with Barratt Redrow?
The British housebuilder is suffering from a convergence of simultaneous headwinds, both external and internal. On the macroeconomic front, the conflict in Iran risks a potential reversal of interest rate cuts by the Bank of England to tackle energy inflation. That means UK mortgage rates could soon start climbing again, strangling home buyer demand across the country.
This looming risk is something that all homebuilders are facing right now. But Barratt Redrow is arguably in a much more vulnerable position, given the firm’s also having to tackle an enormous £1bn fire safety remediation bill due to fire safety defects in buildings it’s previously constructed.
Recognising this, it isn’t so surprising to see the FTSE 100 stock take a chunky hit. But with the shares now trading at their lowest point since 2013, could investors have potentially overreacted?
Opportunity or trap?
Weak sentiment surrounding this business is understandable. But it’s worth highlighting that even the most cautious share price targets for this business are now higher than where the stock trades today. And despite its problems, the company does have some powerful tailwinds.
Beyond the well-documented undersupply of housing in the UK, the firm’s integration of its Redrow acquisition is currently running ahead of schedule, with £97m of the £100m in cost synergies already realised. Meanwhile, the balance sheet’s genuinely strong with a net cash position of £173.9m even after paying out dividends and buybacks.
Having said that, profit margins are a potential point of concern, with input costs rising even with Redrow synergies. And subsequently, management confirmed in its latest results that profitability is getting squeezed.
So what’s the verdict? There’s a compelling argument to buy Barratt Redrow shares as a long-term recovery play.
But in the near-term, the FTSE 100 stock remains shrouded in uncertainty. So for investors seeking shelter from current volatility, this business likely isn’t a good fit to consider.
Fortunately, there are plenty of other potential opportunities to explore.
