Housebuilders drive FTSE 100 Index higher

(MENAFN- ProactiveInvestors - UK) Housebuilders drove the FTSE 100 Index higher on Thursday as house prices surprised on the upside last month.

The Footsie rose 103.34 points to 6566.93 after the Halifax said prices rose 1.3% in June following a 0.6% increase in May and a 0.8% dip in April.

But the Halifax cautioned that the data was collected before the UK''s EU referendum on June 23.

It also pointed to evidence of an underlying slowdown in price growth, with the year-on-year figure moderating to 8.4% in the three months to June.

Howard Archer at IHS Global Insight said: ''Despite the Halifax reporting a significant rise in house prices in June itself, we believe the housing market''s prospects have deteriorated markedly following the ''Brexit'' vote.''

Housebuilders shrugged off the rising toll of City institutions halting redemptions from their property funds in the wake of the referendum, which has now hit seven.

Persimmon PLC (LON:PSN) was the industry''s top riser with a gain of 6.75% to 1376p, followed by increases for Taylor Wimpey PLC (LON:TW.), Land Securities PLC (LON:LAND) and Barratt Developments PLC (LON:BDEV).

Traders also took a breather from fretting about the implications of the referendum more generally, with smaller company indices all making progress.

The FTSE 250 Index, hit hard in the last few days due to its preponderance of UK-focused companies, rose 265 points to 15935.

The FTSE AIM 100 increased 11.75 points to 3320.58 and the FTSE AIM All-Share lifted 1.9 to 698.9.

Shares in Stratmin Global Resources PLC (LON:STGR) advanced 25% to 1.875p as it agreed to sell 93.75% of the issued shares of Graphmada Mauritius to Bass Metals Limited for up to A$15.25mln.

Capital Drilling Limited (LON:CAPD) ticked up 16.2% to 39.5p on news that trading continued to show positive signs of improvement in the first half.

But Portmeirion Group PLC (LON:PMP) fell more than a fifth to 872.5p as the tableware maker forecast pre-tax profits materially below the record 8.6mln in 2015, due to falling demand in Asia.

Keras Resources PLC (LON:KRS) dimmed 10.6% to 1.05p after the Australian gold miner outlined a series of hurdles it would face in starting mining at its Prince of Wales underground pit.

Back in the top flight, the top winner was Associated British Foodsplc (LON:ABF) up 7.7% to 2,749p. The group said it was sticking to its plans to expand the Primark clothing chain across Europe and the US, and was optimistic about its continued growth despite ''Brexit'' uncertainty.

The biggest loser was Randgold Resources PLC (LON:RRS), down 2.47% to 9475p, as more upbeat market sentiment slowed the flight to gold as a safe haven.

London''s shares are set to start on the front foot, after a solid showing by US markets last night.

Spread betting quotes indicate the FTSE 100 will open at around 6,533, after closing at 6,464 on Wednesday.

In the US, the S & P 500 advanced 11 points, or 0.5%, to 2,100, after the release of the minutes from the meeting of the Federal Reserve''s policy makers, which showed that the Federal Open Market Committee remains committed to keeping its options open.

Towards the close of trading in Asian markets, the Nikkei 250 was off 83 points at 15,296 in Tokyo while in Hong Kong the Hang Seng was up 158 points, or 0.8%, at 20,653.

On the economic front today, UK industrial production figures are due out while the Halifax House Price Index might feature prominently in news reporting today.

The European Central Bank will release the minutes from its most recent meeting of its policy makers.

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.