Housebuilders will be centre stage in the coming week, as Persimmon, Vistry (formerly Bovis Homes), Taylor Wimpey and MJ Gleeson release trading updates.
Shares in all four have shaken off their autumnal lows and begun to make a bit of progress, possibly due to hopes of further interest rate cuts from the Bank of England.
Investors will be looking for signs of recovery and the impact of the Budget and the rate cuts on the housing market.
The construction sector has been in contraction for a year, according to the latest S&P Global UK construction purchasing managers’ index published on Wednesday.
However, figures release by HMRC revealed UK house sales were 8% higher in November than a year earlier, giving some hopes of an upturn.
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, noted that Persimmon’s homes are typically valued around 15% below the new-build national average, which “offers some resilience to ride current market challenges” and should provide some relief on building cost pressures.
He said the company’s November update showed second-half sales rates trending in the right direction, despite a softening market ahead of the UK budget.
“Between July and mid-November, both the order book and average selling prices were in growth territory, too.”
Recruiters will also be in the spotlight, with Hays, PageGroup and Robert Walters providing updates in what has been a tightening market for hiring.
Homeware retailer Dunelm will release a trading update. Analysts at AJ Bell said that from a strategic point of view, investors will look to the company for comment on its store roll-out programme, across different sizes and formats, notably in and around London.
The big set-piece event is the Scottish Budget which will be delivered by the Finance Secretary on Tuesday afternoon.
DIARY
Monday 12 January
- First-half results from Knights Group
Tuesday 13 January
- Trading updates from Hunting, Gym Group, Page Group, Persimmon, Whitbread
- Scottish Budget
- US consumer price inflation
Wednesday 14 January
- Trading statements from Hays, Vistry
Thursday 15 January
- Full-year results from Safestore
- Trading statements from Brooks Macdonald, Dunelm, Robert Walters, Taylor Wimpey, Trustpilot
- UK construction, manufacturing and industrial output
Friday 16 January
- Trading statement from MJ Gleeson
- GfK UK consumer confidence
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