The British housebuilder held a rally on Wednesday morning, but was unable to cause a rebound of the FTSE 100 due to the weakness of previous sessions.
Barratt Developments has risen by more than 5% in interim trade following the release of a positive trading update highlighting strong forward sales. The FTSE 100 fell 0.3% to 7,108.
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“Housebuilders have enjoyed boosting from the latest updates from Barratt Development, putting their inventory on top of the FTSE 100 Risers, lifting Perimmon, Taylor Wimpey and Berkeley Group in the process.”
Taylor Wimpy, Persinmon and the Berkeley Group rose 2.5% to 4% as investors jumped on the coattails of Barratt’s update.
“Previous sales were excellent at Baratt and the company remains bright. There was tension in the home construction sector and it was tense that it would be negatively affected by ongoing inflation in raw material prices and, more recently, rising energy prices.” Mold said.
The market remains tense
Russ Mold, investment director at AJ Bell, said:
“The biggest waterfall of the FTSE 100 in index point terms was a mixture of defensive and cyclical stocks, so investors clearly didn’t fall on one side of the fence. Medicines, consumer goods, mines Workers were one of the stocks in the negative territory.
Iron ore has dropped by about 10% over two days, and miners are some of the worst performers of the day. Rio Tinto and BHP Group were big FTSE 100 resistance at 2.6% and 1.9% in early trade on Wednesday.
The FTSE 100 was negative for two consecutive days. This means that the FTSE 100 is formed as one low highest at 7185, 7160, and now at 7148, indicating the technical weakness of the index.
