* FTSE 100 up 0.7 pct
* Set to snap longest losing streak since 2011
* Construction groups get Help to Buy boost
* Ukraine crisis keeps investors wary
By Simon Jessop and Francesco Canepa
LONDON, March 17 Britain's top share index
looked set to snap its longest losing streak in 2-1/2 years on
Monday after the building sector surged on a government plan to
pump more cash into a scheme to boost construction.
The threat of profit-sapping sanctions between Russia and
the West over Crimea rose after voters there opted to quit
Ukraine, capping index moves. It meant intraday highs hit soon
after strong U.S. manufacturing data failed to
Persimmon led FTSE 100 gainers, rising 4
percent after British finance minister George Osborne said on
Sunday he would extend a scheme to encourage housebuilding and
develop a new town close to London.
"It is mainly being used outside London by first-time
buyers, so I think it's going to be positive for names like
Taylor Wimpey, Persimmon and Barratt," Ian Osburn, an analyst at
Cantor Fitzgerald, said.
Among other housebuilders, Barratt Developments,
Taylor Wimpey, Berkeley Group and Crest
Nicholson gained between 3 percent and 5 percent.
"If anything I would have expected the reaction to be even
more positive," a second sector analyst said, as it kicked
uncertainty about how the government will exit its support to
the sector "into the long grass".
Average share price upside for housebuilders was now around
35 percent, he added.
The promise of better profits in the sector, one of the
best-performing this year, helped the FTSE 100 add 0.7
percent to 6,575.76 points, bouncing off Friday's one-month low
after a week in which it fell 2.8 percent.
In spite of Monday's gains, it remains down 4.3 percent on
the year, with much of that drop coming in the last two weeks.
The UK blue-chip index had fallen for six straight sessions,
its longest losing streak since November 2011, leaving it
"oversold" on its seven-day Relative Strength Index, a technical
Qualified relief at the lack of any upsurge in violence
linked to the referendum in Crimea underpinned the FTSE's
bounce, said Markus Huber, senior trader at Peregrine & Black,
although near-term gains would depend on the scale of
In a sign of that relief, the cost of insuring against
future swings on the FTSE, as measured by the FTSE 100
Volatility index, fell about 10 percent - though it
remains more than 50 percent higher than at the start of the
Colin McLean, fund manager at SVM Asset Management, said he
considered the recent market falls "a dip to buy on".
"I think Europe, at least, and probably the U.S., are still
in a bull market and will make new highs this year.
The FTSE 100's year to date high is 6,867.42 points.