FOXT, CLI, PCA: Stocks to watchlist as housing market starts cooling

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FOXT, CLI, PCA: Stocks to watchlist as housing market starts cooling

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 FOXT, CLI, PCA: Stocks to watchlist as housing market starts cooling
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Highlights

  • The housing market showed signs of a slowdown in May due to the increase in the cost of mortgage finance and the growing fear of a recession.
  • According to the latest report from OECD, UK’s economy will expand by 3.6% this year before seeing zero growth next year.

The housing market showed signs of a slowdown in May due to the surge in the basic cost of mortgage finance alongside growing concern over a recession. The economic conditions are impacting the country’s growth, which is also bothering the households, according to a survey by RICS published on Thursday.

UK’s housing market showed signs of slowdown in May.

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According to a survey from The Royal Institution of Chartered Surveyors (RICS), its new buyers’ gauge turned negative for the first time in nine months from +8 in April to -7 in May.

Since December, the Bank of England (BoE) has raised interest rates four times to address the rising inflationary pressure. It has also warned that inflation might reach 10% within months, as the Russia and Ukraine war has magnified the slowdown in the global economy with energy and food prices toughing their record highs. The BoE is expecting a revision of interest rates again next week.

According to the latest report from the Organization for Economic Co-Operation and Development (OECD), the UK economy is expected to expand by 3.6% this year, before seeing zero growth next year. This clearly indicates that the UK economy will be the worst performer among all countries in the G20, besides Russia.

Let’s look at 3 FTSE-listed real estate managers and developers that investors can keep an eye on.

  1. Foxtons Group Plc (LON: FOXT)

The shares of the British real estate agency company, Foxtons Group plc, were trading at GBX 41.80, as the market opened at 8:00 AM (GMT+1) on 9 June 2022. The company has given its shareholders a year-to-date return of 4.65% and its market cap stands at £132.62 million as of 9 June 2022.

Related Read: AZN, STAN, BATS, BA.: Stocks to focus on as World Bank warns of recession

  1. CLS Holdings Plc (LON: CLI)

With a market cap of £132.62 million as of 9 June 2022, the share of the FTSE 250-listed British commercial property investment business was trading at GBX 225.00 as the market opened at around 8:00 AM (GMT+1) on 9 June 2022. The company has given its shareholders a year-to-date return of 1.83%.

Related Read: PSN, TW., VTY: Real estate stocks to eye amid rising house prices

  1. Palace Capital Plc (LON: PCA)

The shares of the UK-based real estate investment trust company that primarily invests in commercial real estate, Palace Capital Plc, trading at GBX 275.50 as the market opened at around 8:00 AM (GMT+1) on 9 June 2022, at GBX 165.00. The company has given its shareholders a year-to-date return of 1.83% and its market cap stands at £916.64 million as of 9 June 2022.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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