London's FTSE indexes buoyed by real estate stocks as Segro rejects takeover bid

Prologis

Today 09:05

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    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 .FTSE was flat by 0755 GMT, while the midcap FTSE 250 .FTMC edged up 0.1%.
The FTSE 350 real-estate investment trusts index .FTNMX351020 jumped 6% and the real-estate sector .FTUB3510 gained 5.3%, with Harworth HWG.L and Tritax BBOXT.L up 5.6% each.
Segro SGRO.L jumped 15.6% and was the top gainer on the FTSE 100 as Prologis PLD.N 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.
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.
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.
Among others, British fund manager Liontrust's LIO.L 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 BKGH.L rose 5.1% after announcing a strong demand outlook
Primary Health Properties PHP.L 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 by Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee)
 ((johann.mcherian@thomsonreuters.com;))