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FTSE reclassifies house builders

FINANCE

THE FTSE has had no complaints after it revamped its share classification system and moved house builders out of construction to a personal and household goods index.

Brought in last week, this index ranks housing titan Persimmon with cooker maker Aga but also includes a home construction sub-index for all quoted house builders.

FTSE head of index design Gareth Parker said: 'House builders perform more in line with household goods manufacturers than construction.

'We've got an appeals process for any companies concerned about where they are placed but the only concerns we've had about house builders have been from a few investors that don't like change.

'If you look elsewhere, like the USA, house builders have been included with household goods for a long time.' The construction and materials sector is split into two subindices: building materials for material producers and heavy construction for contractors and consultants.

Support services also includes a new sub-index called Business Support Services for contractors including Amec, Jarvis and Interserve.