London pre-open: Stocks to edge up as investors mull RICS survey

14th Mar 2024 07:32

(Sharecast News) - London stocks were set to edge up at the open on Thursday as investors mulled the latest data on the UK housing market.

The FTSE 100 was called to open around 10 points higher.

A survey out earlier showed the UK house market continued to stabilise in February despite prices remaining under pressure.

According to the latest UK Residential Market Survey from the Royal Institution of Chartered Surveyors, the net balance for house prices was -10 last month.

A net balance is the proportion of respondents reporting a rise in prices minus those reporting a fall.

However, that was the least negative since October 2022, and a notable improvement on last year's low of -67. Respondents were more optimistic looking forward as well, with a net balance of 36 expecting house prices to return to growth over the next year.

New buyer enquiries remained positive for the second month, unchanged at 6, while new instructions rose to 21, the strongest since October 2020.

Agreed sales, meanwhile, eased to -3 from 4 a month previously. However, RICS noted: "Although a little softer, both readings are indicative of a stronger trend in sales volumes than was evident through much of the past 12 months."

Sales activity was also expected to gain further momentum over the coming year, with a balance of 42.

Simon Rubinsohn, chief economist at RICS, said: "The February survey provides some grounds for encouragement around the sales market, with not just buyer interest staying positive but also the uplift in new instructions to agents.

"Whether the increase in stock coming back to the market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year, especially with new build likely to remain constrained."

The February survey was based on 273 responses from 520 branches.

In corporate news, online ticketing platform Trainline reported a strong jump in sales as fewer strikes in the UK and competition for passengers in Italy and Spain boosted revenues.

Total group sales for the year to February 29 rose 22% to £5.3bn, with international ticketing up 14% to £1bn and the UK surging 23% to £3.5bn.

"Our growth was fastest in Spanish domestic travel, which doubled year on year as we position ourselves as the aggregator of choice. Trainline's market share continues to rise on key routes like Madrid - Barcelona, which is now our third most popular route across all countries, including the UK," said chief executive Jody Ford.

Halma reported continued strong growth in its second half in a trading update, with its performance benefiting from portfolio diversity and operational agility.

The FTSE 100 firm left its guidance for adjusted profit unchanged and in line with analyst consensus.

It described strong constant currency revenue growth, particularly in the environmental and analysis sector driven by the photonics segment, alongside modest growth in the UK and improved performance in the Asia-Pacific region.

Biopharma giant AstraZeneca announced the acquisition of French biotech firm Amolyt Pharma for up to $1.05bn to beef up its late-stage rare disease pipeline.

Amolyt, which is a specialist in the treatment of rare endocrine disease, will be purchased for $800m upfront on completion of the deal, plus an additional contingent payment of $250m payable upon achievement of a specified regulatory milestone.