Fears over coronavirus outbreak prompt another mass sell-off with FTSE’s biggest one-day fall for 30 years

Share prices in major listed housebuilders have crashed for the second time this week on fears over the impact of the coronavirus outbreak, knocking as much as one-quarter off their value in less than a week.

stock market

All the UK’s listed housebuilders recorded share price falls of more than 11%, wiping nearly £5bn off the value of the sector amid turmoil on global stock markets. Barratt was the hardest hit, with a fall of more than 14% recorded in late trading.

The falls came with the FTSE 100 Index on course to record a 10% drop, which would be its largest one-day fall since 1987 and its second major fall in less than a week.

However today, the share price falls experienced by listed housebuilders today outpaced that of the stock market generall, unlike with the falls seen on Monday. The drop followed the announcement by Berkeley Group this morning that it was postponing payment of a £500m special dividend to shareholders in light of the increasing uncertainty caused by Covid-19.

In the statement, Berkeley Group said it had seen “no noticeable impact” on trading due to the virus.

Aside from Barratt, the housebuilder worst affected today was Vistry, formerly Bovis Homes, which was trading nearly 14% down in late trading. Since close of trading on Friday, Vistry’s valuation has fallen by 23%, and Barratt’s by almost 25%.

Tyalor Wimpey was today down by 13%, and Persimmon just over 12%.

The falls came as the US announced plans to ban European flights and the UK recorded its biggest daily increase in confirmed cases of Covid-19.

Topics