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Shares in London were buoyant on Wednesday around midday, as housebuilder Persimmon’s disappointing annual profit result was offset by positive trading for mining stocks in the FTSE 100.
The FTSE 100 index was up 68.21 points, 0.9%, at 7,944.49. The FTSE 250 was up 74.48 points, 0.4%, at 19,977.76, and the AIM All-Share was up 1.02 points, 0.1%, at 860.39.
The Cboe UK 100 was up 0.8% at 794.87, the Cboe UK 250 up 0.5% at 17,526.36, and the Cboe Small Companies up 0.5% at 14,166.22.
The pound was quoted at $1.2042 at midday on Wednesday in London, down compared to $1.2118 at the equities close on Tuesday. The euro stood at $1.0660, up against $1.0613. Against the yen, the dollar was trading at JP¥135.54, down compared to JP¥136.11.
Stocks in London were boosted by some positive data on the factory sector in China.
Survey results showed that China’s factories returned to growth in February, amid the loosening of pandemic restrictions.
The Caixin manufacturing purchasing managers’ index rose to 51.6 points in February from 49.2 in January. Crossing over the 50-point no-change mark, it shows the sector is now in a state of modest growth. The latest reading on the strength of China’s factory sector was better than the market consensus forecast of 50.2, as cited by FXStreet.
On the back of this news, London’s mining stocks were on the rise. Notably, Rio Tinto was up 4.3%, Antofagasta up 4.0%, Anglo American up 3.9%, and Glencore up 3.0%.
On the other side of the FTSE 100 index, news of lower house prices drove down blue-chip housebuilders, with Barratt Developments shedding 2.9%, and Taylor Wimpey 3.0%.
In the UK, house prices fell 1.1% on an annual basis in February, according to Nationwide, with prices also seeing the sixth consecutive monthly fall.
The Nationwide house price index fell 1.1% on an annual basis in February, compared to the 1.1% rise seen in January.
On a monthly basis, prices fell 0.5% in February from January, slowing slightly from a 0.6% decline in January from December. It was the sixth consecutive monthly decline in UK house prices.
The average price of a house in UK was £257,406, down from £258,297 in January. House prices in February were 3.7% below their August peak.
‘Welcome to a new era of chaos for the housebuilders. Falling property prices and rising costs means profits are being squeezed and that will cause earnings in the sector to slump,’ said AJ Bell analyst Russ Mould.
‘It’s right to be cautious as the latest figures from Nationwide show house price growth has turned negative for the first time since June 2020. Higher mortgage costs, worries about job security, pressure on household finances from broader inflation and concerns about the economic outlook have created a cocktail of problems for people looking to move house and that‘