Today, the shares in Brexit sensitive housebuilders have risen as the market express its support for the ability of Theresa May, the Prime Miniters of the United Kingdom, to survive an impending no confidence vote.
Taylor Wimpey, Persimmon, Barratt Development, and Berkeley Group all saw their shares increase by between 3.4 percent to 5.5 percent. The rise came hours before Conservative MPs cast their votes on the leadership of the British Prime Minister.
May needed 158 supporters in order to survive the challenge. Multiple reports revealed that that more than that number of Tory MPs have already pledged their support for the leadership of Theresa May publicly.
However, this does not necessarily mean that she will be able to secure victory as the vote is a secret ballot.
The shares of Berkeley rose by 5.53 percent to 3494p and the shares in Barratt were up by 4.23 percent to 466.1p this afternoon.
Persimmon, the second largest housebuilder of Britain, saw its share rise by 3.73 percent while the shares of Taylor Wimpey were up by 3.42 percent.
Last week, Rob Perrins, the chief executive of Berkeley, said that the short term outlook of the business is stil not certain because of the ongoing process of Brexit. His comments come as the firm announced boosted pre-tax profit guidance for the current financial year.
George Salmon, an equity analyst at Hargreaves Lansdown, stated: “Sentiment will remain closely tied to the Brexit barometer.”
The conservative MPs are due cast their votes between 6pm and 8pm this evening, while the results of the ballot are expected by 9pm.