Good news from the US meant housebuilders enjoyed a mini rally this week. US home sales rose for the first time in seven months in February – by 2.9% to just over 5 million. Although it was 24% down year on year, it prompted some to say the market had hit the bottom.
It was good news for Taylor Wimpey, whose share price was riding – relatively – high at 183.5p on Tuesday. Our imaginary £100 stake, bought on 29 February, was now worth £107 – up on the £88 of a couple of weeks ago.
Bovis fared equally well over the seven days and our ton was worth £102 by Tuesday. Redrow was also up amid speculation over investor Toscafund’s reasons for building up a stake of nearly 10% alongside its 4% share in Taylor Wimpey.
Could it eventually mount a bid? One City watcher thought so. He said: “These guys can see the inherent value in housebuilders and they like to get hands-on.”