With the bulls still in the ascendency even the beleaguered housebuilders are in demand.
Bovis Homes has climbed 23.25p to 440.25p after analysts at UBS raised their rating from neutral to buy. They said:
"We upgrade Bovis, given its 20% discount to tangible net asset value. Given recent signs of price stability and a balance sheet which puts Bovis in a position to buy land, we see attraction in the shares.
"A continued improvement in UK mortgage availability is key for a continued improvement in the housing market. Mortgage approvals are running at 43,000 per month (up 50% from its lows), but still significantly below historical averages. We anticipate a rise to 55-60,000 by 2009 year end. This should cement price stability and support volumes in 2010, giving us increasing comfort in tangible net asset values."
This positive tone has helped lift the rest of the sector, with Taylor Wimpey up 2.5p at 37.25p and Barratt Developments 10.25p better at 175p.
Overall the market it holding onto its gains, following a bright start on Wall Street. The futures were right on the US market opening - something that is not always the case - and the Dow Jones Industrial Average is currently up around 60 points. So the FTSE 100 has moved 55.07 points higher at 4443.82, on course for its sixth successive daily rise.
Both Goldman Sachs and Morgan Stanley have made bullish noises today, with the former predicting a "sustained rally" in the US market for the rest of the year. Morgan Stanley's well respected strategist Teun Draaisma said the likelihood of a better-than-expected recovery into 2010 had improved with recent newsflow. although he remains neutral on equities for the moment.
But Draaisma has upgraded the insurance sector from neutral to overweight and is particularly keen on Legal and General, up 4.44p to 61.5p.
