Building frenzy aids Footsie star Ashtead
building equipment rental firm Ashtead bolstered its position as the best-performing FTSE 100 stock this year after a construction boom in the uS.
it jumped 3.9pc, or 224p, to 6442p after it upgraded full-year guidance following a ‘record first half performance’ in the six months to the end of October.
Pre-tax profits swelled 38pc year-on-year to £673m while revenues jumped 18pc to £2.9bn. it also hiked its interim dividend by 28pc to 9p per share.
The figures were boosted by reconstruction in the uS following the 2021 hurricane season, which caused over £53bn worth of damage. its equipment has also been in demand in the uK, helping to build after Covid.
Ashtead wasn’t the only one raking in profit, with uS-focused plumbing and heating supplier Ferguson upgrading its full-year forecasts after sales jumped nearly 27pc to £5.1bn in the three months to October 31. Profits were up 64pc to £559m. Shares rose 5.9pc, or 685p, to a record 12,225p.
AJ bell investment director Russ Mould noted that Ferguson signed a £907bn uS infrastructure spending package for President Joe biden last month, which will be a ‘positive backdrop’ for Ashtead in its core uS market.
On this side of the Atlantic, builders boomed as uK house prices hit fresh highs in november. Taylor Wimpey gained 2.3pc, or 3.8p, to 167.8p while Persimmon ticked up 1.7pc, or 4.8p, to 2819p, Berkeley rose 2.2pc, or 98p, to 4635p and Barratt climbed 1.8pc, or 12.6p, to 732p.
Mid-cap builders were also on the rise, with Bellway adding 1.6pc, or 52p, to 3250p, Crest Nicholson gaining 2.1pc, or 7.2p, to 351.6p, Redrow moving up 1.5pc, or 10p, to 686.6p and Vistry jumping 2pc, or 22.5p, to 1156p.
The FTSE 100 rose 1.5pc, or 107.62 points, to 7339.9 while the FTSE 250 jumped 1.6pc, or 356.84 points, to 23.238.17. The blue-chip index managed to rebound to levels seen before the Omicroninspired sell-off amid suggestions that the Covid variant may only cause mild symptoms, reducing the risk of another lockdown.
better-than-expected economic data out of China boosted miners which export raw materials to the country. Anglo American was up 6.5pc, or 182.5p, at 2995p while Antofagasta jumped 4.3pc, or 59p, to 1418.5p and Rio Tinto rose 4.8pc, or 220.5p, to 4813p.
Meanwhile, pharma giant Astrazeneca fell 1.7pc, or 140p, to 8223p after Jefferies analysts downgraded the stock to ‘hold’ from ‘buy’ and predicted a decline in earnings growth after 2026. That overshadowed Astra’s deal with California firm ionis to develop a drug to treat a condition that causes fatal heart failure.
Barclays was also on the back foot, down 0.2pc, or 0.34p, to 186.72p after deutsche bank downgraded it to ‘hold’ from ‘buy’, while upgrading HSBC to ‘hold’ from ‘sell’ and Natwest to ‘buy’ from ‘hold’. The former rose 1.4pc, or 6.2p, to 443.5p while the latter was up 2.5pc, or 5.5p to 221.1p.
Paragon Banking Group, one of the uK’s largest mortgage and loan providers, rose 0.6pc, or 3p, to 542p after record profits. For the year to September 30, profit rose 81pc year-on-year to £213.7m amid a 29pc jump in mortgage lending to £1.6bn and a 23pc rise in commercial lending to £1bn.
Meanwhile, car dealership Inchcape tracked up 1.6pc, or 14p, to 868p after expanding into the Caribbean, by buying two firms, which are expected to add around £120m to its annual revenues.