Bellway PLC's (LSE:BWY) trading update brought an air of positivity to the housebuilding sector, piquing buying interest.
On the FTSE 100, Persimmon PLC (LSE:PSN) and Taylor Wimpey PLC (LSE:TW.) posted gains of 2%, while Barratt Redrow PLC (LSE:BTRW) was up 1.6%.
Dropping down to the 250, Bellway led the way, rising 3.2%, with Vistry Group PLC (LSE:VTY) not too far behind.
Earlier, Bellway’s CEO Jason Honeyman described the company’s performance as ‘solid’ in the face of ‘industry headwinds’, including changes to stamp duty.
Revenue rose 17% to £2.7 billion in the year to July 31 as the builder completed 8,749 homes.
Providing analysis, Peel Hunt said the trading statement was notable for its lack of surprises.
“The group reiterated its intention to improve capital efficiency and asset turn, with more detail to come at the finals in October,” the broker said.
“In essence, the group aims to improve operating cash flow conversion over the medium term, and to optimise the balance between investment in growth and return to shareholders via both buybacks and dividends.”