The FTSE 100 closed the day at yet another all-time high on Thursday, as shares in some of the UK’s biggest housebuilders surged following comments from the Prime Minister.
London’s blue-chip index gained 20 points to finish the day at 8,565, or a 0.2% rise.
Housebuilding giants Persimmon, Taylor Wimpey and Barratt Redrow saw shares rise faster than most on the stock exchange, after Sir Keir Starmer said he would end a “challenge culture” on infrastructure projects.
Sir Keir said opponents of major infrastructure projects will have fewer chances to “frustrate growth” through repeated legal challenges.
Danni Hewson, an analyst at the investing firm AJ Bell, said the sector “has arguably been oversold since Labour’s election victory considering the huge focus the Government has placed on housebuilding”.
He added: “Moves by the PM today to make it easier for huge infrastructure projects to go ahead by limiting the number of legal challenges – taking on the ‘Nimbys’ who Keir Starmer said stood in the way of growth – have been seen as a clear indication that the Government is serious about building back Britain.”
Elsewhere, Shell and BP shares took a knock after Donald Trump said he would ask some of the world’s largest oil producers to lower prices.
In Europe, France’s Cac 40 closed 0.7% higher, and in Frankfurt the Dax was up 0.7%.
On Wall Street, the S&P 500 was up 0.1% and Dow Jones had risen 0.6% shortly after UK markets had closed.
The pound was up 0.3% against the US dollar at 1.235 on Thursday.
Sterling was up about 0.2% against the euro at 1.185.
In company news, Primark’s owner AB Foods told investors it was cutting its sales forecasts for the fashion retailer after seeing sales decline in the UK and Ireland in recent weeks.
The company said it was now targeting “low single-digit” sales growth for 2025, having previously forecast “mid single-digit growth”.
Consumer sentiment remained “cautious” which had dampened demand from some shoppers, the group said. Shares in AB Foods closed 3% lower.
THG saw its share price drop on Thursday after the Myprotein and Cult Beauty owner saw sales dragged down by continued weakness in its nutrition business over the latest quarter.
But the online retail firm saw a stronger performance for its skin, cosmetics and fragrance categories – and said it was a “standout year” for the beauty business. Shares in the company closed 7% lower.
In oil markets, the price of Brent crude oil fell by 0.5%, to about 76 US dollars per barrel.
The biggest risers on the FTSE 100 were Persimmon, up 47.5p to 1258.5p, Taylor Wimpey, up 3.65p to 118.6p, Natwest Group, up 11.9p to 429.6p, Intermediate Capital, up 58p to 2316p, and Barratt Redrow, up 10.9p to 441.8p.
The biggest fallers on the FTSE 100 were Entain, down 30.2p to 676.6p, AB Foods, down 57.5p to 1879.5p, Marks & Spencer, down 6.5p to 332.8p, Smith & Nephew, down 18.5p to 1009p, and Sainsbury’s, down 4.2p to 253.2p.
