Taylor Wimpey Deferral; UK Home Price Forecast

123jump.com Staff
24 Dec, 2008
New York City

The British pound fell against the euro and the dollar after private survey indicated home prices in 2009 may drop as much as 15%. AstraZeneca declined after the U.S. requested more information on its depression treatment drug. Taylor Wimpey received a relief from certain debt covenants.

[R]1:00PM New York, 6:00PM London – Ahead of holiday season in weak trading stock indexes edged lower. UK home prices are expected to fall as much as 15% in 2009. The pound edged lower against the euro and dollar.[/R]

London stock indices dropped fractionally led by a weakness in commodity stocks and in oil prices. A private report indicated that residential home prices may drop between 10% and 15% in 2009.

In London trading FTSE 100 index fell 0.9% or 39.39 to 4,216.59.

Of the FTSE 100 index stocks, 32 rose, 67 declined, and 3 were unchanged. Liberty International led gainers in the index shares with a rise of 5.4%.

The pound edged lower against the dollar to $1.475 and against the euro to 95 pence from 94.6 pence. The weak housing report affected trading in pound.

Weak Home Prices in 2009

Royal Institution of Chartered Surveyors reported that residential prices are forecasted to fall a further 10% to 15% in 2009 based on mortgage approval indices compiled by HBOS and the Nationwide Building Society. The survey also noted that the housing market may be at the bottom.

RICS expects a fall of between 25% and 30% from the peak prices.

Gainers & Losers

Liberty International led advancers in the FTSE 100 index shares with a rise of 5.4% followed by increases in Man Group of 4.9%, in Schroders Plc of 4.8%, in Hammerson of 4%, and HBOS of 4%.

BT Group led decliners in the FTSE 100 index shares with a fall of 5.9% followed by losses in Rexam Plc of 5%, in Smith & Nephew of 4.3%, and Legal & General Group of 3.9%.

Commodity stocks also dropped after oil prices fell below $37 per barrel on speculation that the U.S. increased its supplies for the third straight week. Kazakhmys lost 2.5% and Royal Dutch Shell plummeted 2.5%.

Europe Markets Review

In London FTSE 100 Index closed lower 39.39 or 0.93% to 4,216.59, in Paris CAC 40 Index decreased 12.20 or 0.39% to close at 3,116.21. Markets of DAX and SMI were closed today.