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Foxtons shoots higher on debut as FTSE stalls
by Chris Marshall on Sep 20, 2013 at 09:56
Shares in Foxtons, the estate agent capitalising on London’s relentless property boom, gained some 20% on its first morning of trading as a public company.
The strong debut from the estate agency known for its ruthless approach to shifting homes came amid a lax show from broader stock markets.
The FTSE 100 was flat at 6,621 after having enjoyed yesterday’s global market rally that was triggered by the US Federal Reserve’s decision not to begin trimming back its monthly emergency bond purchases.
European shares, which had also shared in the rally yesterday, were similarly stagnant. Investors are preparing for the German elections this weekend, where chancellor Angela Merkel’s Christian Democrat-led group is still favourite to win, according to polls.
Among London shares, Foxtons – whose staff stalk London streets in distinctive Minis (see picture) – rose as high as 280p, up from the offer price of 230p that had valued the firm at £649 million on admission to the stock market this morning. The 230p price was reportedly at the top of the initial range set by the company.
The launch comes amid a growing debate about whether government schemes are fuelling a renewed bubble in the British housing market. Demand for London property has underpinned the housing market revival.
Tate & Lyle downgraded; miners slide
Among London blue chips, Tate & Lyle (TATE.L) was the biggest faller, down 3.3% to 758p after Credit Suisse cut the food ingredients company to a ‘neutral’ rating.
Currency winners and losers
In currency markets the pound was trading up 0.16% to $1.6054 after official data showed public sector net borrowing was £13.2 billion in August, £1.3 billion lower than in August 2012.
'There looks to be a very real and growing possibility that the Chancellor will significantly undershoot his 2013/14 fiscal targets,' commented Howard Archer, an economist at IHS Global Insight.
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