Persimmon shares pop on improved sales
Persimmon’s shares have soared after it saw improved sales since the start of October. IGTV financial analyst @AngelineOng takes a look at why they are rallying despite uncertain market conditions in 2024.
(Video Transcript)
Persimmon's shares jump 3.8%
Persimmon's shares are rising on news of improving sales since the start of October. Let's get you across the numbers and the headlines. New home completions fell by 37%. However, it is on track to deliver around 9,500 new homes in 2023.
And perhaps this is what investors are pouncing on because it contrasts with Barratt Developments and Vistry. Now, both these house builders, just showing you their share price here, have flagged that things are continually hard for the sector.
Vistry, as you can see there, if I widen that out, has come down quite a bit given the expectations of a challenging UK property market. Same story as well for Barratt, which have given our clients a lot of volatility. It has to be said so far this year, but it's still a way off from its highs seen back in around 2021, as you can see there, 596.
Builder faces headwinds
Persimmon shares - let's have a look at that, because Persimmon's comments contrast so much from its peers - are actually on the day, on the session right this minute, up 3.8%.
Headwinds remain, though. Mortgage rates remain high. And the Bank of England (BoE) has made no sounds yet about taking them down from 15-year highs. Persimmon also admitting, too, that market conditions are highly uncertain for 2024 as mortgage and high living costs put buyers off.
But where is the salad dressing? Well, if you're looking in the short term, for now, investors are focusing on the positives, which is that Persimmon is not sounding as downbeat as its peers.
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