Sector movers: Real estate, construction stocks gain on positive outlook

10th Apr 2014 13:50

Real estate, construction and materials stocks were performing well on Thursday amid signs of continued robust growth in the UK housing market.House sales across Britain climbed to a six-year high in the first quarter of 2014, with growth spreading "right across the country", according to the Royal Institution of Chartered Surveyors (RICS).The data was based on the average number of houses sold per chartered surveyor, which rose to 22.7 homes, a level not seen since February 2008. RICS also said that the average price of a home will rise by 6% per annum for the next five years, meaning that houses will be 35% more expensive than they are now by 2020.The Council of Mortgage Lenders (CML), meanwhile, revealed today that mortgage lending volumes continue to surge in February compared with the previous year.48,400 loans were given in February, down slightly month-on-month due to the "predicted seasonal dip around this time of year", the CML said. However, when compared with February 2013, loans were up 33%.Lending to first-time buyers actually bucked the seasonal trend, rising 2.3% on the month to 22,000, representing 41% growth on last year.The combined value of all loans given during February totalled £7.8bn, up 47% on the previous year.Building products peers CRH and Marshalls were rising strongly in London on Thursday, along with construction groups Morgan Sindall and Galliford Try.Norcros was also a high riser in the construction sector today after saying that its annual results would be in line with expectations. The home consumer products group said underlying profit before tax would be 26% higher at approximately £14.7m on revenue that it set to rise 9% to £229m.Real estate companies Workspace Group, Land Securities and Derwent London were also making gains.Top performing sectors so far todayReal Estate Investment Trusts 2,725.11 +1.10%Construction & Materials 4,826.27 +1.08%Banks 4,516.99 +1.07%General Industrials 4,224.33 +0.99%Tobacco 38,432.33 +0.98%Bottom performing sectors so far todayIndustrial Transportation 3,052.73 -1.24%Mobile Telecommunications 4,918.21 -0.71%Electricity 9,633.64 -0.57%Mining 16,998.43 -0.42%Technology Hardware & Equipment 1,226.35 -0.35%BC