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Travis Perkins and housebuilders at risk of dropping out of FTSE 100
Building firms look set to be kicked out of the FTSE 100 after their share prices crashed in the wake of the Brexit vote, despite signs of their strong performance.
Housebuilder Berkeley Group and builders merchant Travis Perkins are among those that could fall out of the top flight index, in the first reshuffle since the June referendum, according to retail broker the Share Centre.
But relegation from the FTSE 100 does not necessarily present a long-term picture of the health of the building sector. Share Centre analyst Ian Forrest said: ‘We’re looking at the first ramifications of the first knee-jerk reaction to Brexit.’
Housebuilders’ shares have been among those to have taken a battering from Brexit, with Berkeley Group, Barratt Homes and Taylor Wimpey all below pre-referendum levels. Travis Perkins’s shares are also below pre-Brexit levels.
But the falls have not been reflected by a drop in business performance. Family-home builder Persimmon said the number of people visiting its sites and reserving a home has jumped by a fifth since the referendum.
Forrest added: ‘I think it is slightly peculiar given the actual companies have not reported any big changes in activity. It’s much more about sentiment.’
Companies listed on the market are reviewed four times a year and reshuffled among the indexes based on their market capitalisation, with the next changes to be announced on Wednesday.
Source : ThisIsMoney.co.uk
www.thisismoney.co.uk/money/markets/article-3762513/Building-firms-set-kicked-FTSE-100-share-prices-crashed-wake-Brexit-vote-despite-signs-strong-performance.html
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