The Yorkshire winners from Boris Johnson's election victory

Analysts said Boris Johnson's decisive win should boost Yorkshire firms
Analysts said Boris Johnson's decisive win should boost Yorkshire firms
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The Conservative Party's decisive win in the General Election should release pent up demand and provide a big boost to some of Yorkshire's biggest firms, analysts said on Friday.

They singled out housebuilders York-based Persimmon and Sheffield's MJ Gleeson as two of the biggest winners, saying that house prices and sales volumes should pick up now that political uncertainty is out of the way.

Analyst Charlie Campbell at Liberum said: "The surprisingly strong majority for the Conservatives should improve the prospects for housebuilders, building materials and UK equipment hire, as economic and political uncertainty unwinds.

"We expect housebuilders to continue re-rating as the market anticipates improving house prices and volumes."

He named Persimmon and MJ Gleeson as two of his "top picks".

Persimmon's shares jumped more than 10 per cent on the news and Gleeson's shares rose 5 per cent.

Other beneficiaries include building material suppliers such as Bradford-based double glazing supplier Safestyle and Elland-based paving stone specialist Marshalls.

Mr Campbell said: "Building materials should see better prospects if housing transactions improve as we expect.

"Improving business confidence, notwithstanding some continued uncertainty around full resolution of Brexit, should lead to better activity in the commercial sector. We also believe that demand will strengthen if election pledges around infrastructure are honoured."

He issued a "buy" recommendation on Safestyle and Sheffield-based insulation giant SIG.

Market experts also said the big Conservative majority should benefit UK food retailers such as Leeds-based Asda and Bradford-based Morrisons.

Morrisons' shares rose 2 per cent on the news.

Analyst Bruno Monteyne at Bernstein said the big Conservative majority should lead to the release of pent up consumer demand and confidence, leading to a big Christmas family shop.

"Consumer confidence rarely makes a big difference, but the protracted uncertainty around Brexit and the incessant media coverage was strong enough for consumers to reduce volumes in our view by 100 to 150 bps.

"This is just in time for the most important food retail trading event: Christmas where families traditionally trade up when they feel good. Surges in demand also lower food waste, further boosting margins. Christmas trading updates between 7 and 9 of January will be strong."

Edward Park, deputy chief investment officer at Brooks Macdonald, said: "Retailers and housebuilders... are seeing a surge in early trading as the outlook for both their revenues and costs improve.

"Housebuilders such as Persimmon and retailers such as Dixons Carphone rallied as much as 15 per cent in the opening minutes of London trading."

Emma Wall, head of investment analysis at Hargreaves Lansdown, said: “Banks, property and utilities are benefiting from the Boris bounce.

"As expected, it’s the domestically focused stocks that have done well this morning from the Boris bounce.

"UK banks Barclays, Lloyds and Royal Bank of Scotland have jumped – shrugging off that Moody’s downgrade of last week."