Persimmon +4.6%, Taylor Wimpey +3.4, Barratt Developments +3%, Bovis Homes Group +2.4%, Redrow +2%, Berkeley Group +1.9%
UK house builders bucked the trend this morning after a bullish note on the sector from Goldman Sachs helped lift UK house building stocks. The government backed “Help to Buy” scheme has been widely welcomed by the market. When the programme was announced back in March, the housing market needed serious help but a recent survey now suggests that British house prices were rising at their fastest pace in 11 years. However, many critics have been quick to hit back that the new scheme may fuel another housing bubble as the country’s economy picks up speed. Persimmon led the FTSE 100 risers whilst Taylor Wimpey has been named a “conviction buy” at Goldman Sachs.
William Hill, +1.6%
Shares in the UK’s largest listed online gambling operator by revenues and profits rose Wednesday after Morgan Stanley said the share price offers a “compelling entry point” who believes the stock will rise relative to the industry over the next 60 days. Morgan Stanley rate the stock as “overweight” with 475p price target.
The bakery food-on-the-go retailer reported a rise in sales in the 13 weeks to September 28th but said that with consumer disposable incomes still under pressure the company remains cautious. Total sales up 3.6% for the 13 weeks to Sept. 28, like-for-like sales down 0.5%. The pickup in demand comes after the summer weather cooled off, helping sales in the last three months.
Marston’s PLC, +3.1%
Brewer and pubs operator Marston’s PLC announced Wednesday that performance for the second half-year has been encouraging, with good weather over the summer, adding that it is proposing to accelerate the new-build program and targeting 25 to 30 openings over the next few years, with a visible pipeline of sites to 2017. Like-for-like sales were 2.2% ahead of last year including like-for-like food sales growth of 3.7% and wet like-for-like sales growth of 0.2%. Over the last 11 weeks like-for-like sales have grown by 2.6%. Operating margins are expected to be slightly ahead of last year.
Zytronic PLC, +11%
The maker of touch sensor products, now anticipates results for the full year to be ahead of market expectations after improved trading performance during the second half to September. Profit before taxation is now anticipated to be approximately £1.9m on revenues of £17.2m.
Vedanta Resources, -4.3%
Vedanta Resources PLC reported record oil and gas production of 213,299 barrels of oil equivalent per day in the second quarter, as well as increased production of refined zinc, lead and silver at its Zinc India unit. Following the production release, Vedanta led the FTSE 100 fallers after Morgan Stanley cut the stock to Underweight From Equalweight.
Brown (N) Group, -5.7%
The online, catalogue and stores retailer, Brown (N) Group reported a rise in half year profit and said it made a strong start to the second half with like-for-like sales in the five weeks to Oct. 5 up by 8%. With the 8pc jump in half year revenues to £409.6m, this will help them expand its presence on the high street. N+1 Singer reaffirmed its buy rating on the stock with a currency 540p price target signalling a potential upside of 4.75% from the current price.
Aquarius Platinum, -3%
Aquarius Platinum Ltd said Wednesday it has suspended blasting activities at Kroondal Platinum Mine’s Kwezi shaft after finding the body of a female employee underground at the mine. The suspension will help facilitate the South African Police Services’ forensic investigation, which has already begun.
Blur Group, -7.3%
Blur Group PLC, a company that runs an online services exchange, announced Wednesday that two directors of the business plan are to sell a total of 995,000 shares via an accelerated bookbuild through N+1 Singer.
Northcote Energy, -6.1%
The onshore US oil and gas exploration and production company, is pleased to announce that it has raised GBP1.75 million (BE) through a placing arranged by Shore Capital Stockbrokers Limited of 159,090,910 new ordinary shares with new and existing shareholders in the Company at a price of 1.1 pence per Placing Share.