Berkeley shares jump by 8.5%

Shares in Berkeley Group jumped by 8.5% on Friday after the London-focused housebuilder reported solid half-year results and announced plans to allow share buy-backs.

The shares, which fell sharply from around £32 before the EU referendum, closed up at £27.60.

The results were in-line with expectations as Berkeley delivered a 33.9% increase in pre-tax profits but saw demand fall.

The shares were boosted by Berkeley’s proposal to change its shareholder returns programme to introduce share buy-backs as well as dividends.

“Despite its impressive capital return plan, Berkeley’s share price has languished in 2016 and consequently the shares are now yielding c8%,” said analysts at Peel Hunt.

“We continue to believe there is a lot of value in Berkeley at the current share price.”

Meanwhile, the FTSE 100 closed down 0.33%.

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