The FTSE 100 index closed on a positive note during a shortened trading session ahead of the Christmas holiday, marking a festive boost despite challenges in the housing sector.

FTSE 100 Posts Gains Despite Weaker Housing Sector

London’s primary stock market index rose by 34.27 points, or 0.42%, to close at 8,136.99. This uptick came despite significant losses among housebuilding stocks, which were dragged down by a profit warning from construction firm Vistry. Retail stocks provided a counterbalance, buoyed by optimism around a potential rebound in consumer confidence for 2024, even though recent pre-Christmas sales figures underperformed expectations.

Hargreaves Lansdown’s senior equity analyst Matt Britzman noted: “The FTSE 100 delivered positive Christmas Eve trading, despite a week clouded by lacklustre economic data.” He added that GDP figures for the third quarter showed no growth, casting a shadow over the broader economic outlook.

Mixed Performance in European Markets

Across Europe, trading results were mixed. Germany’s DAX index fell by 0.18%, while France’s CAC 40 gained 0.25%. On the currency front, the British pound showed slight recovery after hitting a seven-month low earlier this week, trading up 0.12% against the US dollar at 1.255 and rising 0.24% against the euro to 1.207.

Housebuilder Stocks Struggle

Vistry Group, a leading Kent-based housebuilder, was among the biggest decliners after issuing its third profit warning in recent months. The company attributed the reduction in its pre-tax profit forecast to delays in home completions and sales deals, cutting its estimate by £50 million to £250 million for the year. Shares of Vistry plunged 16.3% to 547.5p.

Winners and Losers in the FTSE 100

While housebuilder stocks struggled, other sectors saw notable gains. Maritime analytics firm Windward experienced a 42.5% surge in its share price to 208p following a £216 million acquisition announcement by US-based investment fund Octopus UK Bidco. Meanwhile, Safestore gained 0.5% to 655.5p after unveiling a joint venture with Nuveen Real Estate to acquire Italian competitor Easybox for €175 million (£145 million).

Top performers in the FTSE 100 included:

Airtel Africa: Up 4.2p to 112.85p

Pershing Square: Up 84p to 3,852p

Anglo American: Up 48.5p to 2,378.5p

Vodafone: Up 1.28p to 67.75p

Melrose Industries: Up 9.2p to 549.1p

However, the biggest decliners were:

Persimmon: Down 29p to 1,186.5p

Entain: Down 8.6p to 684.2p

Endeavour Mining: Down 9p to 1,435p

Ashtead: Down 30p to 4,947.5p

Barratt Redrow: Down 2.4p to 432.25p

Oil Prices Rise Amid Positive Economic Data

Oil markets also showed signs of optimism as positive US economic data boosted demand expectations. Brent crude prices increased by 0.66%, closing at $72.8 (£58) per barrel.

Conclusion

Despite weaker housebuilder stocks, the FTSE 100 index managed to end higher in the last trading session before Christmas, driven by gains in other sectors and optimism for the year ahead. With regulatory developments and acquisition deals boosting specific stocks, the index’s performance hints at a resilient market amid broader economic challenges.

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