Sector movers: Housebuilders drop after construction PMI disappoints

4th Apr 2013 13:54

Housebuilding stocks were under pressure on Thursday a day after construction data from the UK came in below the mark.The CIPS/Markit construction purchasing managers' index (PMI), which measures overall output in the sector, rose to 47.2 in March, bouncing off a 40-month low of 46.8 the month before, but below the consensus estimate for a greater rise to 48.0. This was the fifth straight month below the 50 no-change point and much weaker than the series average of 54.The report said that civil engineering was by far the worst performing area of construction activity in March with the pace of contraction being the fastest since October 2009.Taylor Wimpey, Barratt Developments, Redrow and Persimmon were the worst performing stocks in the sector on Thursday, all registering falls of at least 3.0%. Meanwhile, Bellway and Bovis Homes were registering more moderate declines but were still in the red.Traders were shrugging off some positive comments from Credit Suisse made earlier in the day after the Swiss broker upgraded its 2014 earnings forecasts across the UK housebuilding sector by an average 15% on the back of the recently launched 'Help-to-Buy' scheme by the government.The broker said that the scheme will inevitably lead to house price inflation and will be "extremely attractive" for all the key parties - homebuyers, housebuilders and mortgage providers.Top performing sectors so far todayOil Equipment, Services & Distribution 24,776.27 +1.06%Mining 17,391.27 +0.72%Bottom performing sectors so far todayHousehold Goods & Home Construction 10,062.88 -2.45%Forestry & Paper 9,263.37 -2.33%Technology Hardware & Equipment 1,080.35 -2.24%Electronic & Electrical Equipment 4,127.98 -1.75%Aerospace and Defence 4,697.14 -1.70%BC