Sector movers: Construction stocks gain after Budget

20th Mar 2013 13:35

Stocks in the construction and materials sector were making decent gains on Wednesday in the aftermath of Chancellor George Osborne's Budget statement which included a number of measures to kick-start infrastructure and home-buying activity.Speaking to packed House of Commons, Osborne said that the government "can provide the economy with the infrastructure it needs". He said he would be using extra savings from government departments to boost infrastructure plans by £3.0bn a year from 2015-2016."That's £15bn of extra capital spending over the next decade. Because by investing in the economic arteries of this country, we will get growth flowing to every part of it," he said.As for home ownership, the Chancellor launched the 'Help to Buy' scheme, which includes a commitment of £3.5bn to share equity loans and a new mortgage guarantee. The Budget Book also includes plans to: build 15,000 of more affordable homes; increase fivefold the funds available for building for rent; extend the 'Right to Buy' scheme.The construction sector was in demand today on hopes that the new plans will boost the demand for building services.Heavyweight stock CRH, which provides building materials to the construction and infrastructure sectors, was among the highest risers, up 1.92% at 1,536p. Sector peers Balfour Beatty, Costain and Morgan Sindall were also making gains.Richard Sexton, Director of e.surv Chartered Surveyors, welcomed the pledge to build 15,000 more affordable homes, but said that it is "just a drop in the ocean"."A lack of affordable housing is a gaping wound in the economy. More homes need to be built - and the government needs to do much more to help. We need 270,000 new homes a year in England to meet demand, yet in 2012 there were just 105,090 housing starts. That's a critical shortfall."Top performing sectors so far todayConstruction & Materials 4,101.55 +1.49%Fixed Line Telecommunications 3,219.33 +1.33%Automobiles & Parts 6,446.05 +1.25%Chemicals 9,681.46 +0.93%Tobacco 38,969.81 +0.89%Bottom performing sectors so far todayIndustrial Metals & Mining 2,289.65 -1.91%Industrial Transportation 2,714.81 -1.42%Real Estate Investment & Services 2,116.17 -0.78%Mining 18,186.47 -0.51%Mobile Telecommunications 4,362.63 -0.51%BC