FTSE Indices Boosted by Real Estate Surge After Segro Turns Down Prologis Bid
Market Movements and Key Drivers
FTSE Index Performance
June 24 (Reuters) - London's domestically-focused midcap FTSE index rose on Wednesday as real-estate stocks rallied alongside Segro after the UK landlord rejected U.S-based Prologis' $16.6 billion bid.
The blue-chip FTSE 100 index was flat by 0755 GMT, while the midcap FTSE 250 edged up 0.1%.
Real Estate Sector Gains
• The FTSE 350 real-estate investment trusts index jumped 6% and the real-estate sector gained 5.3%, with Harworth and Tritax up 5.6% each.
Segro and Prologis Developments
• Segro jumped 15.6% and was the top gainer on the FTSE 100 as Prologis urged the UK company's shareholders to press the lanlord's board to engage with the U.S. logistics firm. Prologis argued the FTSE 100 company is undervalued.
Political and Economic Context
Political Landscape
• Local politics is also in focus after prime minister Keir Starmer's resignation earlier this week paved the way for a leadership contest that could potentially end in former Greater Manchester mayor Andy Burnham taking the role in July or September.
Bank of England and Monetary Policy
• On the macro front, traders are anticipating the Bank of England to lift borrowing costs by at least 25 basis points before the year ends, LSEG-compiled data showed, to combat inflation pressures following the Middle East conflict.
• Policymakers such as Alan Taylor have flagged the right response would instead be an "extended hold", in the face of data that suggests a cooling labour market.
Other Notable Movers
• Among others, British fund manager Liontrust's jumped 12.2% after saying net outflows- in the current quarter have slowed as it expands globally and institutional clients pour in more funds.
• Homebuilder Berkeley rose 5.1% after announcing a strong demand outlook
• Primary Health Properties gained 3% after saying it is in advanced discussions with an unnamed investor for a new joint venture involving the British healthcare REIT's private hospital assets.
Reporting Credits
(Reporting by Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee)
