British banking and insurance stocks rally
British housebuilders were on the front foot today after building society Nationwide said the rate at which house prices were falling had eased “significantly”.
While the Nationwide said a market recovery remained some way off, shares across the building sector took comfort from the monthly update.
The mood was brighter across the London market, with a rally by beleaguered banking and insurance stocks helping the FTSE 100 Index up by 81 points to 4233.7 at mid-morning.
Sentiment was boosted by a strong session in the United States, where the Dow Jones Industrial Average finished almost 3% higher ahead of the Thanksgiving holiday.
Prudential and Aviva rose 8% – 24.25p to 320.25p and 29p to 385.5p respectively - while Lloyds TSB added 10.6p to 170.6p and merger partner HBOS lifted 6p to 96.5p. Royal Bank of Scotland was 2.5p higher at 55.5p.
HSBC proved the exception after shares dropped 9p to 695p.
Aside from the recovery by financial stocks, traders were looking closely at the retail sector following the collapse of Woolworths and MFI and after trading updates from B&Q owner Kingfisher and Currys chain DSG International.
Kingfisher was the biggest faller, off 6% or 7.1p at 112.4p, after it reported a 9% drop in like-for-like sales for its B&Q business in the UK.
Half-year losses of £30m (€35.88m) and a gloomy trading update put further pressure on DSG, which saw its shares tumble another 0.75p to 13.25p. Rival Kesa Electricals, which owns the Comet chain, improved 4p to 75.75p.
Building supplies firm Wolseley topped the FTSE risers board with a gain of 11% or 30.75p to 300p, while in the housebuilding sector Taylor Wimpey jumped 1.87p to 7.65p, a rise of 33%. Barratt Developments followed suit with an improvement of 5.75p to 50.75p.
