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FTSE advances as property sector gains lift sentiment
Housebuilders stormed ahead yesterday after Taylor Wimpey cheered the City with an upbeat assessment of the UK property market.
The FTSE 250-listed Wimpey led a revival in investor interest in the sector as its shares rocketed more than 9 per cent after it said it had seen signs of recovery and revealed a 73 per cent leap in orders.
Despite thin pickings in corporate news, the wider FTSE 100 Index was also buoyed on Friday as positive signs on the US economy helped to bring a volatile week to a close.
The Footsie closed ahead 65.07 points at 4345.93, a rise of 1.5 per cent.
But the index was still almost 100 points below last Friday's close following a slide at the start of the week which erased around six weeks of gains.
'Triple witching' index futures, index options and stock options expiries added some volatility in the morning session.
Gains in the UK mirrored world markets as Thursday's strong US jobs and industrial data continued to allay investors' concerns and contributed gains on Wall Street.
The Dow Jones Industrial Average was up 0.3 per cent in early trading, while the CAC in France and Germany's Dax were also in positive territory.
While a broker upgrade for cruise ship operator Carnival helped it to the top of the Footsie risers' board, it was Wimpey's optimism that the UK property sector should avoid a severe downturn that caught the eye of the market.
Its shares raced up 3p to 34p, while fellow FTSE 250 builder Barratt Developments rose 10p to 1531/2p. Redrow added 83/4p to 1911/2p, Bellway was 131/2p better at 623p and Persimmon gained 121/4p to 3641/2p.
Stocks connected with the property market were likewise benefiting – builders merchant Travis Perkins rose 22p to 497p and plumbing giant Wolseley gained 56p to 1079p.
In the top flight Carnival gained 6 per cent as Wachovia upgraded the firm after a smaller-than-expected quarterly earnings fall on Thursday.
Carnival, which has also seen firmer pricing on last minute bookings, saw shares rise 97p to 1668p.
Tour operator Thomas Cook was also in the black with a rise of 4 per cent, or 9p, to 2201/4p, following Thursday's news that the administrator of its embattled majority shareholder Arcandor is unlikely to resort to a firesale of assets.
Elsewhere in the sector Thomson and First Choice firm TUI Travel rose 61/2p to 2321/2p.
Meanwhile, insurers were on the front foot as Prudential announced the transfer of its Taiwan business to the China Life Insurance company.
Shares advanced by 4 per cent – or 173/4p to 423p – as the firm said that the deal would boost its capital strength by 800m.
Aviva rose 181/2p to 3363/4p and Legal & General grew 11/4p to 613/8p on the news.
Broadcaster BSkyB was another riser, up 123/4p to 4433/4p, after an upgrade from UBS and amid question marks over the future of its broadcasting rival Setanta.
There were few fallers in the top flight as the wider market advanced, although more defensive stocks lost ground. Telecoms giant Vodafone edged 17/8p lower to 120p.
The four biggest Footsie risers were Carnival, Aviva, ICAP up 24p to 4541/2p, and Lonmin ahead 66p to 1250p.
The biggest Footsie fallers were Smiths Group down 141/2p to 649p, Royal Bank of Scotland off 3/4p to 371/4p and Voda-fone.
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Saturday 11 February 2012
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