Housebuilder crisis: Firms battle wild share price swing

Speculators, short-sellers and market rumours were responsible for wild fluctuations in housebuilders’ share prices yesterday.

Shares in Barratt Developments gained ground for only the second time in four weeks, falling 17% in morning trading.

They later bounced back as short-sellers banked their positions, which helped shares rise more than 50% from yesterday’s low, reported the Financial Times.

Will Duff Gordon from Data Explorers told the newspaper the moves came from short-sellers taking profits while they could.

Taylor Wimpey also rose 16% while Redrow shares increased by 5%.