The fall-out from Wednesday’s Budget will clearly be a big topic on Thursday but also in focus will be a trading statement from yet another house builder - Barratt (LON:BDEV).
We’ve already had Bovis Homes (LON:BVS) this week, which reported a record level of home deals in the first half but said its debt had risen as it invested in more land.
Some of the analyst comment may add in any changes from the Budget, which will affect the industry.
The company said legal completions in the six months to June 30 rose to 1,525 from 1,487 in the same period a year ago, while the average sales price on completions increased by 6% to £222,000 against £210,000 last time.
Deutsche Bank, the heavyweight broker rates Barratt a ‘buy’ and said it expects little to surprise from Barratt’s pre close statement.
"... assuming the group leaves the release of FY 16 guidance until its prelims in September, the focus of the preclose may remain solely on the current operating environment," it said.
Analyst Glynis Johnson reckons there is upside to the share price, however, as the group increasingly demonstrates that ROCE can reach comfortably ahead of 25%, and as confidence grows in the upside to dividend as the group moves towards a more replacement level of land buying..
The broker has a target of 661p on the shares, which is a fair distance from where they are now - at 597p.
Significant announcements expected:
Finals: Mirada (LON:MIRA), NCC Group (LON:NCC), Supergroup (LON:SGP)
Trading statement: Associated British Foods (LON:ABF), Barratt Developments (LON:BDEV), Dunelm Group (LON:DNLM), Grafton Group (LON:GFTU), Hays (LON:HAS)
The following stocks are trading ex-dividend on Thursday: TalkTalk, Next, Vedanta Resources
Economic: Asia – Chinese consumer prices, Chinese producer prices. UK – BOE asset purchase target, BOE interest rate decision. US – Initial jobless claims