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FTSE buoyed by resilient Persimmon

Published 23/08/2016, 09:59
© Reuters. The London Stock Exchange is seen during the morning rush hour in the City of London
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By Alistair Smout

LONDON (Reuters) - Britain's leading share index rose on Tuesday, helped by a rise in housebuilders after strong results from Persimmon (L:PSN) suggested that the sector was coping with the uncertainty from Britain's vote to leave the European Union.

Persimmon rose 4.3 percent, the biggest riser on the blue-chip FTSE 100 (FTSE). It reported a jump in reservations by buyers of new homes over the past two months despite some surveys suggesting the so-called Brexit vote could cool the housing market.

The company does not build in central London, where some surveys have found that prices of premium properties are falling the fastest.

"Less London exposure than peers looks to be paying off while current trends and outlook appear in line with recent property data," said Mike van Dulken, head of research at Accendo Markets.

"Like the rest of the FTSE, the company acknowledges 'increased economic uncertainty' in light of the referendum, but investors appear more focused on increased customer interest in Persimmon properties".

Rival housebuilders Barratt Developments (L:BDEV), Berkeley and Taylor Wimpey (L:TW) also rose, gaining between 3.8 percent and 4.2 percent.

The FTSE 100 (FTSE) was up 0.7 percent at 6,875.52, set for its biggest daily gain since August 11. It drifted back last week after touching 14-month highs in mid-August.

The rise was broad-based, with only four stocks in negative territory.

Miners (FTNMX1770) were among the leading gainers, up 2.3 percent to recoup most of Monday's slide, helped by stabilising copper prices.

Among mid-caps, JRP (L:JRP) was up 14.9 percent and set for its best session in 1-1/2 years after the annuity provider provided an upbeat trading update.

The stock remains down more than 30 percent since the Brexit vote.

© Reuters. The London Stock Exchange is seen during the morning rush hour in the City of London

Casino operator Rank Group (L:RNK) rose 2.8 percent after it struck a bullish tone over Brexit repurcussions. Its update came days after it dropped a joint bid to buy bookmaker William Hill (L:WMH).

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