Wolseley's up, but TP is down.

Brokers plumb for merchants over builders

Published:  04 November, 2010

LONDON: Wolseley shares were in demand yesterday on suggestions that house repair and improvement will be better business than house building.

"We expect to see an increasing trend of 'improving not moving' in both the residential and non-residential sectors", said a Credit Suisse broker

Wolseley shares hit their highest since early 2009, up 21p to 1751p. Credit Suisse advised investors to put their money into builders' merchants rather than house builders. The broker expects house building to suffer "a vacuum of positive catalysts in the coming months - from consumer confidence to bank lending".

The broker said: "We expect to see an increasing trend of 'improving not moving' in both the residential and non-residential sectors, ie where a homeowner or business is unwilling to make the large capital commitment to acquire a larger property in an uncertain economic environment, but instead chooses to renovate existing premises."

But Travis Perkins failed to follow Wolseley's positive lead and was down 10p to 833p fuelling speculation that the company's proposed takeover of plumbing and heating supplier BSS Group, 21/2p weaker at 444p, may have hit a snag.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

At Arco, we are an industry specific recruitment consultancy, providing sales and managerial staff Nationwide to Merchants, Distributors and Manufacturers of Building Materials within the Construction Sales Sector. Priding ourselves on our unparalleled customer service and hard work, we offer a fresh, innovative and personal approach to recruitment specifically designed to meet our clients’ needs and candidates’ skills.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.