FTSE 100 takes a breather from nine-month high; Vistry shimmers

Reuters

Published Mar 14, 2024 08:27

Updated Mar 14, 2024 17:30

By Pranav Kashyap, Sruthi Shankar and Johann M Cherian

(Reuters) -Britain's FTSE 100 closed lower on Thursday, pulling back from the previous day's nine-month peak, though housing-related stocks outperformed the broader market, led by Vistry shares that hit a more than two-year high.

The globally focused FTSE 100 ended down 0.4%, a day after data showing the local economy bounced to growth in early 2024 sent the index to its highest since late May.

Further denting risk appetite was a hotter-than-expected February U.S. producer prices print, which fed uncertainty around the timing for interest rate cuts in the developed world.

UK equities have lagged peers so far this year as worries of stagnating economic growth and little exposure to technology-related stocks have resulted in investors looking elsewhere for better returns.

On the day, the more domestically oriented FTSE 250 slipped 0.4%, led by a 16% tumble in OSB Group after the bank said its 2024 profit margins would be broadly flat year-on-year due to rising funding costs and a subdued mortgage market.

In a bright spot, Vistry advanced 8.2% after the housebuilder said it would build more homes this year, encouraged by resilient demand after its 2023 profit beat market expectations.

"Vistry's strategy shift will likely help it weather the challenges of 2024 better than many of its peers," said Aarin Chiekrie, equity analyst at Hargreaves Lansdown (LON:HRGV).

"Demand for more profitable private housing should pick up again once mortgage affordability pressures ease."

The broader household goods and home construction sector also got a 1.4% lift after a survey showed Britain's housing market picked up.

Among others, Trainline Plc (LON:TRNT) jumped 13% after the rail ticketing company raised its adjusted EBITDA forecast for the full year.