MARKET REPORT

CRACKS appeared across the housbuilding sector yesterday after Redrow chairman Steve Morgan sold down his stake.

Morgan’s vehicle, Bridgemere Securities, and his charitable trust sold a combined 7 per cent stake, leaving them with just under 33 per cent. Redrow shares fell 52½p to 580p, Persimmon dropped 52p to 2503p, while

Barratt Developments and Taylor Wimpey weakened 10p to 596p and 2¾p to 193p.

Motoring organisation the AA accelerated 5½p to 168½p after confirming it had held preliminary talks over combining its insurance business with insurer Hastings, up 3p to 311¾p. Equipment rental company

Ashtead Group gained 75p to 1759p as it increased first-quarter pre-tax profit by 21 per cent to £238.5million and said it expects demand from the post-hurricane season clean-up in America.

Investors lost their appetite for restaurant group Tasty, down 5p to 37p, after half-year profit fell to £210,000 from £1.61millison last time and as it flagged “challenging conditions” from a slowdown in consumer spending.