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Shares in British housebuilders rose on fresh hopes that the housing market is red hot again.
Figures of Right move (up 1.9 per cent, or 10p, to 542p) show that the Bank of England’s recent interest rate cut, its first in four years, has sparked a surge in demand among potential buyers.
According to the property website, estate agents have reported a 19% increase in enquiries about homes for sale this month compared to the same period last year. And interest from potential buyers in July was 11% higher than the previous year.
The industry is recovering from what happened 12 months ago, when higher interest rates and rising inflation flattened demand.
Rightmove also reported a 5 per cent rise in the number of new sellers coming to the market as confidence to move increases.
Building wars: Shares in Britain’s housebuilders rose on fresh hopes the housing market is red hot again
Tim Bannister, director of Rightmove, said: “The first base rate since 2020 has provided a welcome late summer boost in buyer activity.”
The latest figures boosted builders, with Bell path rose 2.5 percent, or 74 pence, to 3,100 pence, Khaki adding 1.6 per cent, or 26p, to 1,681py Taylor Wimpey up 1.4 percent, or 2.3 pence, to 163.85 pence.
Anthony Codling, an analyst at investment bank RBC, said it looked as though “while Labour is trying to move Britain forward, the Bank of England’s actions will move Britain forward.”
The FTSE 100 rose 0.6 per cent, or 45.53 points, to 8,356.94 and the FTSE 250 added 0.5 per cent, or 108.56 points, to 21,157.47. Investors are shunning riskier assets weeks after the global market collapsed.
Action Observation – Intercede
Intercede shares rose after partnering with Microsoft.
The cybersecurity software group will work with the US tech giant to help organisations create and register passcodes (which are more secure than passwords) for users of mobile phones and other devices.
Passcodes offer an alternative way to log in using a fingerprint, facial scan, or screen lock PIN.
Intercede shares rose 10.1 percent, or 17.5 pence, to 191 pence.
The price of bitcoin has plunged 12% in the past month. The world’s largest cryptocurrency is valued at more than £45,000, but is still a long way from reaching some analysts’ predictions of £116,000 by the end of this year.
Gold prices fell after hitting a record high last week.
The precious metal rose above 1,930 pounds an ounce for the first time on Friday, as demand rose following renewed hopes that the United States will cut interest rates next month. But it fell 0.6 percent yesterday to around 1,927 pounds an ounce.
Mining stocks rose on the back of rising metal prices. Glencore gained 2.8 percent, or 11.35 pence, to 415.2 pence, Anglo-American It added 2.3 percent, or 49.5 pence, to 2,235 pence and Rio Tinto rose 1.7 percent, or 82.5 pence, to 4,824.5 pence. Fever tree ignored concerns about his prospects.
Deutsche Bank Research warned that the tonic maker’s shares will struggle in the near term due to a slowdown in the global spirits market. The stock rose 2 percent, or 17.5 pence, to 912.5 pence.
Mobicoowner of National Express, is preparing to publish its half-year results tomorrow.
The company expects to report higher passenger numbers and more than £1.57bn of revenue it made in the first six months of 2023. Shares, which have fallen by a third this year, gained 1.2 per cent, or 0.7p, to 58p.
Recruiter Hayes On Thursday, the company will also release its financial results in a 12-month update. Last month, Hays warned that its full-year profit would be at the lower end of market forecasts, around 105 million pounds. Shares rose 0.8 percent, or 0.75 pence, to 95 pence.
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