Investors optimistic on housebuilders after EU withdrawal vote
FTSE 350 housebuilders were up 2% in the first hour of trading this morning, outperforming the wider market in the wake of parliament’s overwhelming rejection of the EU withdrawal agreement last night.
Every housebuilder in the FTSE 100 and FTSE 250 recorded a rise in value, with Bovis Homes leading the pack with a 4.7% rise by 9:30am. By contrast, the FTSE 100 was down 0.7% and the FTSE 250 was up 0.1%.
The performance comes the morning after MPs rejected the government’s Brexit deal by a majority of 230.
FTSE 350 housebuilders were up 2% in the first hour of trading this morning, outperforming the wider market in the wake of parliament’s overwhelming rejection of the EU withdrawal agreement last night.
Every housebuilder in the FTSE 100 and FTSE 250 recorded a rise in value, with Bovis Homes leading the pack with a 4.7% rise by 9:30am. By contrast, the FTSE 100 was down 0.7% and the FTSE 250 was up 0.1%.
The performance comes the morning after MPs rejected the government’s Brexit deal by a majority of 230.
It marks a stark reversal from November when the draft withdrawal agreement, and the ensuing chaos that saw resignations within parliament, sent housebuilder shares tumbling.
Housebuilders are particularly vulnerable to anything that might shake the domestic market, and Bovis Homes, which has seven regional businesses, was hardest hit at the time, falling 8.3% by midday on 15 November.
Strong opposition to the deal worried investors who were concerned it would increase the likelihood of a no-deal Brexit, affecting the economy and people’s ability – or willingness – to buy new homes.
Last night’s defeat opens up a number of alternative options, although there is little clarity on which of those options parliament is likely to support.
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