Shares in major contractors and housebuilders have been dented this morning as the UK has woken up to the uncertainty of a hung parliament.
Despite the overall FTSE100 being up, shares for firms across the construction industry all suffered an initial slide before recovering slightly. Infrastructure investment decisions are likely to face further delay, while question marks have been raised over any future government’s housing policy.
Balfour Beatty’s share price is down around 1 per cent after a sharp initial fall.
Balfour Beatty shares ge2017
Rival Carillion has also seen a 1.3 per cent fall since trading began at 8am.
Carillion shares ge2017
Galliford Try meanwhile is down 2.1 per cent and Kier’s share price has slid 2 per cent.
Galliford Try shares ge2017
Morgan Sindall has seen a slight fall, but Interserve’s share price is up slightly after also taking an initial hit.
Housebuilders have felt a similar impact following the election result, which has seen the Tories fail to gain a majority.
Barratt’s share price slid 2.9 per cent, Persimmon is down 3 per cent, Taylor Wimpey has fallen 3.2 per cent, while Bellway is down 3 per cent. Berkley’s share price also dived and is currently down
Liz Jenkins, a partner at law firm Clyde & Co, said: “The big concern for the infrastructure industry now is the ongoing economic uncertainty, which will cause further decision-making delays.”
However analysts at Peel Hunt said: ”We suspect housing activity will again dip slightly, but expect a short-lived pause with the fundamental housing shortage leading to a recovery in activity within a month or two.”
Sterling has also fallen as markets reacted badly to the political uncertainty.
However, the overall FTSE100 index was boosted as the majority of firms in the index have major overseas operations and a weaker pound means profits made abroad are worth more when converted back to sterling.