Wed 11 Jun 2008
Housebuilders shares continue to plunge
There is more bad news for the housebuilding sector this morning, as the mass sell-off of shares of some of the country’s largest housebuilders continues, sparked by the news yesterday that the UK house market is facing its worst slump in 30 years.Shares across the housing sector yesterday suffered their biggest fall in a single day since the start of the downturn, losing a tenth of their overall value. Housebuilders have now lost over 75% of their market capitalisation since May.
Worst affected is Barratt, down 12.50p this morning, at a record low of 70p having dropped from a peak of 1075p this year. Shares in the company plummeted following reports that Barratt is close to breaching its banking covenants.
Persimmon, which is set to lose its place on the FTSE 100, also fell to a new low of 354.74 this morning, down 32.75p, while its rival Redrow fell 18p to 147.50p.
Other companies coming under fresh selling pressure include Berkeley, down 54.5p at 675p, Bovis 19.25p at 325.25p and Taylor Wimpey 10.25p at 54.75p.
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