UK construction stocks rise on confidence of strong housing market

UK markets were mixed this morning as UK construction stocks rose after Persimmon, the homebuilder, said it expected the housing market to remain sound.

The FTSE 100 was marginally down 0.5 points to 5471.4 after rising at the open. The Techmark rose by 2.20 points to 1541.03.

Among the gainers, Persimmon rose 12.5p to 396.5 after announcing a first-half profit growth of 39%. CRC Group gained 10p to 170p as it announced better-than-expected earnings per share for the first half of the financial year. Lynx Group advanced 2p to 88.5p after the software provider announced it had won a £3m contract with Bristol & West.

CMG lost 11.5p to 230.25 after JPMorgan reduced its price target and earnings forecast for the company. Terrence Chapman slumped 14.5p to 35p after the provider of information technology services to banks announced that full-year profits to August will fall.

US stocks fell yesterday on news of a decline in the sale of previously owned homes for the month of July, underlining concerns that consumer spending is not picking up.

The Dow Jones Industrial Average closed 41 points lower at 10,382. The Nasdaq was down 4 points to 1,912.

Japanese stocks fell as the Nikkei 225 dropped to a 17-year low for the sixth time this month. The Nikkei 225 shed 85.61 points to 11,189.40 led by weak results of semiconductor companies after Advantest announced sales might have halved in June.

Hong Kong's Hang Seng rose 35.4 to 11,270.12 paced by China Unicom, after the mobile company cut call rates in order to compete with its rival, China Mobile.

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