The FTSE 250 index declined 1.76% to close at 22,425 on Friday, with construction products distributor Grafton Group (LSE: GFTU) among the notable fallers and asset manager Abrdn (LSE: ABDN) one of the standout risers after receiving a key broker upgrade.

Grafton reported a “resilient” start to 2026 with revenues up 3.2% year on year at £830.1 million across the first four months, but warned that rising cost pressures tied to the Iran conflict could weigh on market demand and construction volumes in the coming months.

Average daily like-for-like sales were broadly flat, with modest growth in Ireland and Northern Europe and stronger trading in Iberia offset by weaker activity in Great Britain, where wet weather, rising cost inflation, and softer consumer confidence all contributed to a more challenging environment.

The company said it is actively managing supply chain risks from Middle East instability, holding elevated stock levels for customers, but acknowledged that inflationary pressures from supplier price increases and higher fuel costs are beginning to pass through. Full-year adjusted operating profit is now guided at approximately £190 million to £200 million, roughly in line with both 2025 results and current consensus estimates. Recent acquisitions of Mercaluz in Spain and Cygnum in Ireland are seen as providing some offset to the GB softness.

Abrdn surged after Citi upgraded the stock from neutral to buy, arguing there remains significant upside for investors despite a roughly 10% share price gain over the prior month.

The bank estimated that Abrdn shares trade on approximately 12 times its 2027 earnings forecast, or 8.5 times excluding surplus capital and listed stakes, implying only 12.5 times for the Adviser and ii businesses. Citi suggested up to 20% upside to consensus estimates, pointing to re-rating potential in both the investments platform and the interactive investor retail brokerage as the most compelling levers.

Elsewhere on the FTSE 250, Lancashire Holdings rose 5.85% to lead the index gainers, while Hochschild Mining fell 9.65% to top the fallers list. Student accommodation provider Unite Group was softer after a cautious AGM trading statement. ITV declined almost 5% amid continued pressure on advertising market sentiment.