MARKET REPORT: Homebuilders surge as prices rise

Housebuilders were on a roll in what analysts described as a “big week” for the industry given the general election.

Galliford Try gained 2.1 per cent, or 5p, to 244p, Crest Nicholson added 2 per cent, or 4.8p, ​​to 245p, Persimmon rose 1.5 per cent, or 20p, to 1,372p, Barratt Developments rose 1.2 per cent, or 5.6p, to 477.8p and Taylor Wimpey rose 1.2 per cent, or 1.65p, to 143.8p.

The rally came after Nationwide revealed that house prices rose 0.2 percent in June despite high mortgage rates denting demand among prospective buyers.

The industry is also in the spotlight ahead of Thursday’s election, when Labour plans to build 1.5 million new homes over the next term (or 300,000 a year) if it wins power.

While this is seen as ambitious, plans to restructure the planning system and build more affordable housing could benefit the sector.

The Bank of England is also expected to cut interest rates once the election is over.

Danni Hewson, head of financial research at AJ Bell, said: ‘It could be a big week for housebuilders.

‘For developers and their shareholders, it could be the wake-up call that gets Britain building, although there will no doubt be many uncomfortable discussions about exactly where development would be best for the country.’

However, it was not just the elections that made headlines here, as the negotiating rooms were gripped by the rise of Marine Le Pen in France.

The FTSE 100 index rose 0.03 percent, or 2.64 points, to 8,166.76 and the FTSE 250 fell 0.32 percent, or 63.95 points, to 20,222.08.

It was a steady if unspectacular start to the second half of the year, building on gains of 5.2 per cent in the combined FTSE 350 in the first half of 2024.

A major Britvic investor has called on Carlsberg to sweeten its takeover offer for soft drinks maker Robinsons.

Aviva told the Mail on Sunday that a merger would be beneficial but the offer price was too low.

Britvic has already rejected two offers from Carlsberg worth £12 and £12.50 per share.

The second highest bid valued the FTSE 250 group at £3.1bn.

Kunal Kothari, UK equity fund manager at Aviva, said Carlsberg has “room to be more generous” with another offer.

City analysts believe an offer of £13.50 a share may be enough to secure a deal.

Britvic shares rose 1.5 percent in early trading but ended the day down 0.5 percent, or 6 pence, at 1,175 pence.

One-off target Anglo American, the mining giant, fell 2.8 percent, or 69.5 pence, to 2,432.5 pence after suspending production at its Australian metallurgical coal mine following an underground fire over the weekend.

Shares in computer maker Raspberry Pi fell 1.4 percent, or 5.5 pence, to 395 pence after news that JP Morgan fund managers are shorting its shares.

The short position has raised eyebrows in the City given the strong performance of Raspberry Pi since its initial public offering (IPO) last month.

The shares opened at 280 pence but rose to as much as 500 pence in the following days.