London pre-open: Stocks seen flat; Halifax data in focus
By Michele Maatouk
Date: Thursday 07 Mar 2024
(Sharecast News) - London stocks were set for a steady open on Thursday following gains in the previous session, as investors mulled the latest house price data from Halifax.
Figures released earlier by Halifax showed that house prices rose for the fifth month in a row in February.
Prices were up 0.4% on the month following a 1.2% jump in January. On the year, house prices rose 1.7% in February, easing from a 2.3% gain a month earlier.
The average cost of a home now stands at £291,699, versus £290,608 in January.
Kim Kinnaird, director of Halifax Mortgages, said the figures continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals.
"In fact, the average price tag of a home is now only around £1,800 off the peak seen in June 2022,"" she said. "While it is encouraging that we've seen growth in recent months, what happens next remains uncertain.
"Although lower mortgage rates, alongside expectations of Bank of England interest rate cuts this year, should help buyer confidence in the short term, the downward trend on rates is showing signs of fading.
"Even with growing wages and inflation falling back, raising a deposit and affording a sizeable mortgage remains challenging, especially for those looking to join the property ladder, so it remains a possibility that there could be a slowdown in the housing market this year."
In corporate news, broadcaster ITV reported a 41% fall in annual profits as weak ad revenues offset a record performance from its studios unit.
Pre-tax profit for the year to December 31 came in at £396m from £672m a year earlier.
Virgin Money said it has agreed to be taken over by Nationwide Building Society in a £2.9bn deal.
Virgin shareholders will receive 220p per share, which is a 38% premium to the closing share price on Wednesday.
Elsewhere, GSK announced positive results from the phase three trial comparing Blenrep plus PomDex to standard care in relapsed or refractory multiple myeloma.
The pharma giant said the trial, unblinded early based on a monitoring committee recommendation, showed statistically significant and clinically meaningful progression-free survival benefits for the Blenrep combination compared to bortezomib plus PomDex.
It said the results were consistent with another phase three trial, indicating promising efficacy for Blenrep combinations in multiple myeloma treatment, with detailed findings to be shared at upcoming medical congresses.
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