FTSE 250 movers: Homebuilders find cautious bid, rally in Aston Martin stalls
Diploma topped gains on Thursday, as markets cheered the specialised technical products and services supplier's foray across the Pond to scoop-up Virginia Sealing Products for £56.0m.
Homebuilders were close behind, with a pop higher for shares of Barrett Developments on the back of analysts upgrades drawing attention to the sector.
In a further boost for housebuilders, the Royal Institute of Chartered Surveyors's house price balance for June jumped from -9.0% for May to -1.0% in June (consensus: -12.0%), returning to its best level since October 2018 and, according to economists, pointing to a year-on-year rate of house price growth of about 2.0%.
At least two well-known analysts in the City cautioned that investors should mind the risks from a no-deal Brexit for housebuilders - should it materialise.
Nevertheless, Samuel Tombs at Pantheon Macroeconomics for one was "cautiously optimistic" that house prices might be turning the corner and not only due to the dearth of supply.
"That said, the resilience of mortgage lending and consumers’ confidence in the outlook for their personal finances in Q1 suggests they will remain relatively relaxed," he told clients.
"Moreover, any dampening impact from Brexit uncertainty on house purchase demand likely will be offset by the stimulus provided by lower mortgage rates. Banks’ wholesale funding costs have fallen sharply over the last two months."
Aston Martin Lagonda was at the bottom of the pile, with traders not displaying much conviction regarding the possibility of an imminent end to the trade stand-off between Washington and Beijing one way or another.
Also dampening sentiment towards carmakers, Germany’s transatlantic coordinator warned that Europe should prepare for US tariffs over aircraft subsidies, the Nordstream 2 gas pipeline and European car imports over the next few months.
FTSE 250 - Risers
Diploma (DPLM) 1,461.00p 8.05%
Syncona Limited NPV (SYNC) 230.00p 5.99%
Wood Group (John) (WG.) 514.20p 5.17%
Sirius Minerals (SXX) 15.89p 4.27%
NewRiver REIT (NRR) 170.40p 3.02%
TI Fluid Systems (TIFS) 195.20p 2.63%
Cobham (COB) 115.65p 2.62%
Meggitt (MGGT) 541.80p 2.57%
Sports Direct International (SPD) 257.20p 2.55%
Stagecoach Group (SGC) 132.40p 2.48%
FTSE 250 - Fallers
Aston Martin Lagonda Global Holdings (AML) 928.80p -3.99%
Intu Properties (INTU) 75.38p -3.36%
Domino's Pizza Group (DOM) 261.50p -3.26%
IP Group (IPO) 72.70p -3.08%
Kainos Group (KNOS) 616.00p -2.84%
Greggs (GRG) 2,350.00p -2.24%
Safestore Holdings (SAFE) 631.50p -2.09%
Contour Global (GLO) 174.00p -2.03%
Energean Oil & Gas (ENOG) 982.00p -2.00%
Aggreko (AGK) 789.20p -1.79%