UK's FTSE indexes buoyed by real estate stocks as Segro rejects takeover bid
UK's FTSE indexes buoyed by real estate stocks as Segro rejects takeover bid Updates after markets close
June 24 (Reuters) - London stocks advanced on Wednesday, with the domestically focused midcap FTSE index snapping a four-day losing streak as real-estate stocks rallied after Segro rejected U.S.-based Prologis' $16.6 billion bid.
The blue-chip FTSE 100 index .FTSE closed 0.3% higher, while the midcap FTSE 250 .FTMC advanced 0.8%.
FTSE 350 real-estate investment trusts index .FTNMX351020 jumped 6.9%; real-estate sector .FTUB3510 gained 6.3%, making them the top-performing FTSE 350 sectors.
Segro SGRO.L soared 17.4%, leading the FTSE 100, as Prologis PLD.N urged the UK company's shareholders to press the landlord's board to engage with the U.S. logistics firm. Prologis argued the FTSE 100 company is undervalued.
Prime Minister Keir Starmer's resignation 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.
British fund manager Liontrust's LIO.L shares gained 12.6% after it said net outflows in the current quarter have slowed as it expands globally and institutional clients pour in more funds.
Industrial metal miners .FTNMX551020 dropped 2.1%, precious metal miners .FTNMX551030 lost 4.3% and energy shares .FTNMX601010 shed 2.5% as commodity prices dropped.
Primary Health Properties PHP.L gained 4.5% 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 and Shashwat Chauhan in Bengaluru; Editing by Nivedita Bhattacharjee and Tasim Zahid)
((johann.mcherian@thomsonreuters.com;))
Recent news on Prologis
See all newsUK's FTSE indexes buoyed by real estate stocks as Segro rejects takeover bid
Warehouse giant’s UK raid is cheaper than it looks
Brief: Segro Rejects Prologis Proposal
Israel-based Ratio Petroleum to acquire Pharos Energy (updated)
London's FTSE indexes buoyed by real estate stocks as Segro rejects takeover bid