Shares in UK housebuilders rose yesterday after Persimmon (PSY) said it thought conditions in the sector were beginning to stabilise. The data shows that the percentage of PSY's market cap on loan (%MCOL) has continued to rise, although this is as of c.o.b on Tuesday. The short position in this company is still significant with a %MCOL of of 29.03%, up from 27.85% on Tuesday 12th August (please see graph). It will be interesting to see what the data says next week and whether short sellers will cover their positions (this is likely).
Shares in other housebuilders were boosted by PSY's comments and there has been some suitable short covering in the stocks below. Barratt (BDEV) enjoyed the biggest improvement, with shares ending 13.75% stronger at 128.25p. BDEV still has 22.78% of its shares on loan, although as you can see from this graph, there has been a small amount of short covering in the stock.
Taylor Wimpey (TW) was also up 2.42% to 42.5p. 16.03% of TW's shares are on loan, and as you can see from this graph there has been some short covering in the stock.
Bovis Homes (BVS) rose 3.45% to 412.25p. 25.19% of its shares are on loan, but like TW there has been some short covering - please see graph.
Bellway (BWY) improved 7.6% improvement to 566p, and again, short covering has been prevalent.