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Britain’s FTSE buoyed by resilient Persimmon

Britain’s FTSE buoyed by resilient PersimmonBritain’s FTSE buoyed by resilient Persimmon

(ADVISORY- Follow European and UK stock markets in real time on
the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

* FTSE 100 up 0.7 percent

* Bullish Persimmon update boosts housebuilders

* Miners rebound from Monday’s drop

* JRP surges after results

By Alistair Smout

LONDON, Aug 23 Britain’s leading share index
rose on Tuesday, helped by a rise in housebuilders after strong
results from Persimmon suggested that the sector was
coping with the uncertainty from Britain’s vote to leave the
European Union.

Persimmon rose 4.3 percent, the biggest riser on the
blue-chip FTSE 100. It reported a jump in reservations
by buyers of new homes over the past two months despite some
surveys suggesting the so-called Brexit vote could cool the
housing market.

The company does not build in central London, where some
surveys have found that prices of premium properties are falling
the fastest.

“Less London exposure than peers looks to be paying off
while current trends and outlook appear in line with recent
property data,” said Mike van Dulken, head of research at
Accendo Markets.

“Like the rest of the FTSE, the company acknowledges ‘increased economic uncertainty’ in light of the referendum, but
investors appear more focused on increased customer interest in
Persimmon properties”.

Rival housebuilders Barratt Developments, Berkeley and Taylor Wimpey also rose, gaining between 3.8
percent and 4.2 percent.

The FTSE 100 was up 0.7 percent at 6,875.52, set for
its biggest daily gain since August 11. It drifted back last
week after touching 14-month highs in mid-August.

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The rise was broad-based, with only four stocks in negative
territory.

Miners were among the leading gainers, up 2.3
percent to recoup most of Monday’s slide, helped by stabilising
copper prices.

Among mid-caps, JRP was up 14.9 percent and set for
its best session in 1-1/2 years after the annuity provider
provided an upbeat trading update.

The stock remains down more than 30 percent since the Brexit
vote.

Casino operator Rank Group rose 2.8 percent after it
struck a bullish tone over Brexit repurcussions. Its update came
days after it dropped a joint bid to buy bookmaker William Hill
. (Editing by David Goodman)

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