London market in positive territory
Reassuring news on the UK property market from Taylor Wimpey gave a boost to housebuilder stocks today as the wider London market swept into positive territory.
FTSE 250-listed Taylor soared 8% after it revealed a 73% leap in orders and said it had spotted signs of recovery.
Insurers and travel firms dominated the top tier risers board as the FTSE 100 Index leapt 2%. The Footsie gained 84.7 points to 4365.6 by mid morning.
In an otherwise quiet day for corporate news, Taylor’s optimistic assertion that the UK property sector should avoid a severe downturn dominated the spotlight.
Its shares raced 2.75p ahead to 33.75p, while the entire sector received a lift.
Fellow FTSE 250 builder Barratt Developments rose 10.5p to 154p.
Meanwhile stocks connected with the property market were likewise benefiting - builders merchant Travis Perkins rose 35.5p to 510.5p and plumbing giant Wolseley gained 53p to 1076p.
In the top flight, cruise operator Carnival led the risers, up more than 6% after it posted a smaller-than-expected quarterly earnings fall yesterday and said it had seen firmer pricing on last minute bookings. Shares were up 103p at 1674p.
Tour operator Thomas Cook was also in the black with a rise of 3%, or 6.25p to 217.5p, following yesterday’s news that the administrator of its embattled majority shareholder Arcandor is unlikely to resort to a firesale of assets.
Also in the holiday sector Thomson and First Choice firm TUI Travel rose 10.25p to 236.25p.
Insurers were on the front foot as Prudential announced the transfer of its Taiwan business to the China Life Insurance company. Shares rose 4% – up 16.5p to 421.75p – as the firm said the deal would boost its capital strength by £800m (€944m).
Aviva rose 17p to 335.25p and Legal & General grew 2.2p to 62.4p.
British Sky Broadcasting was another riser, up 15.25p to 446.25p after an upgrade from UBS and amid question marks over the future of its sports broadcasting rival Setanta.
