Persimmon shares plunge as sales stall

Shares in Persimmon plunged 3.6% on Wednesday as the UK’s second largest housebuilder reported sales had stalled in the three months to the end of September.

Persimmon’s shares fell to £27.67, sparking falls for other housebuilders, as investors took profits on a strong recovery in the sector that has seen shares in the sector double from Brexit lows.

Analysts criticised Persimmon’s trading update as being “light on detail”, with Robin Hardy at Shore Capital rating the shares a ‘sell’ and saying he saw nothing in the statement to change that.

Clyde Lewis, an analyst at Peel Hunt rates the shares a ‘hold’ and said he felt there was better value elsewhere in the sector.

Persimmon’s losses spread across the housebuilding sector with fellow FTSE 100 groups Barratt Development’s shares falling 2.4% to 635.5p, and Taylor Wimpey falling 1.6% to 197.6p.

FTSE 250 groups Bovis Homes also fell, down 1.3% to £11.80, while Redrow was down 0.6% to 643p.

Meanwhile the FTSE 100 nudged up 0.22% to 7,529.72 points, and the FTSE 250 edged down 0.03% point to 20,300.221 points.

On the currency markets, the pound fell 0.46% against the dollar to $1.31060 and was also down 0.5% against the euro at €1.13080.

Related Articles

Have your say

Sign in to make a comment on this story.

Sign In

Text size

Desktop Site | Mobile Site