There are few people who thought Donald Trump could ever directly damage the UK property industry, but in one way he did yesterday after his £141 billion threatened trade war with China helped wipe millions off property PLC share prices.
China imports approximately half a trillion dollars’ worth of goods into the US every year, while American manufacturers only export $100 billion worth of goods to China, it is claimed.
Although the FTSE 250 index dipped by just 1% yesterday, but more elsewhere around the world’s markets, the trade war jitters dragged down stocks in the UK’s main property industry PLCs disproportionately.
Unusually, all except Belvoir and the Property Franchise Group experienced dropping share prices yesterday including, significantly, Purplebricks.
Its share price reduced the second most at -3.38% during yesterday’s trading, reflecting the company’s exposure to both the UK and the US.
Countrywide’s share price dropped by 2.56% while OnTheMarket took the biggest hit with a 3.38% reduction.
Donald Trump’s mounting war of words with China over its trade deficit with the US also helped drive Foxtons share price down to another all-time low of 60.6p, even less than its 12th June rock bottom price of 62p.
But the biggest loser today on the London stock exchange was retirement home builder McCarthy & Stone, whose share price dipped by 17.24% yesterday, helped by plummeting profits at the company.
This, departing boss Clive Fenton says, has been created by economic uncertainty and weaker property prices the South East.
Read more about other recent share price plunges for the industry’s big PLC hitters.