Market Commentary - Housing, Infrastructure, Construction and Services 19th June 2017
There is no substantive formal news on the day the negotiations to exit the EU begin. News expected this week includes interims from Wolseley tomorrow and finals from London housebuilder Berkeley Group on Wednesday. Friday saw some positive moves across all HICS stocks; among our 22 stocks only four declined, with the worst case, SIG, being 0.4% down.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 16th June 2017
There is no directly relevant news this morning. Here is a lot of comment in the press on the prospect of a rate rise and it’s not the role of this note to predict interest rates or the political and economic issues behind rate setting. What is 100% clear is that 3%+ inflation and base rates at 0.25% is not a sustainable norm in any economy.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 15th June 2017
Atkins has produced its final results this morning and abandoned the usual meeting in favour of a webcast. While the overall results are very positive the geographic split shows an exaggerated development of the trends seen for the last five years. Balfour Beatty has quietly risen in the last few days and we suspect will provide encouraging results at the interim stage.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 14th June 2017
Severfield, Norcros and Bellway attract attention this morning with releases to the market. The moves yesterday saw Capita storm ahead with a 15.2% increase to 634p as the trading update restored investor confidence and the previous valuation was too low by some distance if the business is stable.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 13th June 2017
Capita, Crest Nicholson and Ashtead all have news for us today. Mitie’s results meeting yesterday was over in an hour, much earlier than expected. The interesting elements from yesterday are the ideas about using technology and the admission that the Property Management operation is potentially up for sale.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 12th June 2017
Mitie’s numbers for 2016 were released this morning and as expected they make grim reading but no grimmer than expected. The election result was the main driving force in the sector and, as we know, will remain so. For the remainder of the year the issues are clear; it depends on what you think will happen with Brexit.
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