Ignis' Ormiston adds to construction ahead of next leg of Europe rally

Ian Ormiston has added to European construction stocks in his Ignis European Smaller Companies fund in the expectation this area of the market is in line to benefit from a economic recovery.

The manager has invested in toilet maker Sanitec and flooring company Tarkett, both plays on increasing housing transactions; he also added French housebuilder and estate agent Nexity and insulation producer Kingspan to the portfolio. "Construction is a theme in the portfolio, but it has not taken hold across Europe," Ormiston (pictured) said. "I see it spreading in line with the recovering economies." "Most of Europe - certainly Italy, Spain, Holland and Denmark - are all at a very low build rate, but have growing populations. These countries have undersupplied the housing market for...