Newspaper article The Evening Standard (London, England)

Cameron's Plan for First-Timers Gives Housebuilders a Fillip; MARKET ROUND-UP

Newspaper article The Evening Standard (London, England)

Cameron's Plan for First-Timers Gives Housebuilders a Fillip; MARKET ROUND-UP

Article excerpt

Byline: Toby Green

CAN the housebuilders push onto new heights? A storming run from the sector has left many fearing a peak has been reached. Yet today the groups were in demand amid claims that a scheme to get first-time buyers onto the housing ladder means there is further to go.

The NewBuy plan, unveiled yesterday by David Cameron, aims to help up to 100,000 people by providing government-backed mortgages.

Although Credit Suisse warned this target was "unrealistic", the broker's analysts claimed that actually "only a small fraction [needs to be] delivered to make a material impact".

As a result, they said they now expect a 4% growth in volumes this year, having previously expected no change. Analysts kept their "outperform" ratings on Persimmon (up 6p to 676.75p), Bellway (up 23p to 849.75p) and Taylor Wimpey (46p to 58p).

The latter received another boost from being chosen -- along with Barratt Developments, which rose 6.1p to 147.75p -- as Deutsche Bank's favourite stocks among the housebuilders. But not everyone is confident the run will continue. Last week, Halifax joined RBS in raising interest rates, prompting Collins Stewart's Alastair Stewart to warn that the rally could be about to turn south.

Overall, the FTSE 100 kept its recent climb going by rising for the fifth consecutive session by advancing 43.78 points to 5,935.53 ahead of tonight's statement from the latest meeting of the US Federal Reserve.

Many of the miners -- including Vedanta Resources, which jumped up 61p to 1,430p -- were mounting a recovery, although Antofagasta was left with the wooden spoon. The Chilean copper digger, which last week announced the surprise resignation of its boss Marcelo Awad, revealed it was cutting its total dividend in order to spend the money on "a new phase of growth", prompting it to fall 44p to 1226p.

On the FTSE 250, 3i continued to move higher after vague speculation was revived yesterday that it could be a target for either a management buyout attempt or an approach from one of its private equity rivals. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.