Shares in Brexit sensitive housebuilders have jumped today as the market backs Theresa May's ability to survive an impending no confidence vote.
Persimmon, Taylor Wimpey, Berkeley Group and Barratt Development all saw shares increase by between 3.4 per cent to 5.5 per cent hours before Conservative MPs cast their votes on the Prime Minister’s leadership.
May needs 158 supporters to survive the challenge, with multiple reports emerging that more than that number of Tory MPs have publicly pledged their support for May’s leadership.
However, this does not necessarily mean she will secure victory as the vote is a secret ballot.
Berkeley shares jumped by 5.53 per cent to 3494p and shares in Barratt were up 4.23 per cent to 466.1p this afternoon.
Britain’s second largest housebuilder Persimmon saw a share rise of 3.73 per cent while Taylor Wimpey shares were up 3.42 per cent.
Last week Berkeley chief executive Rob Perrins said the short term outlook of the business is uncertain due to the ongoing Brexit process as the company announced boosted pre-tax profit guidance for the current financial year.
Hargreaves Lansdown equity analyst George Salmon said: “Sentiment will remain closely tied to the Brexit barometer”.
Conservative MPs will cast their votes between 6pm and 8pm this evening, with the results of the ballot expected by 9pm.