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UK stock markets closed higher after strong gains in real estate stocks, led by Segro, which rejected a USD 16.6 billion takeover approach from U.S.-based logistics property company Prologis. The FTSE 100 and FTSE 250 both ended in positive territory, with real estate emerging as the top-performing sector. Investors also tracked expectations around future interest rate decisions by the Bank of England. Meanwhile, fund manager Liontrust posted strong gains after reporting slower fund outflows, while mining and energy stocks declined due to weaker commodity prices.
UK equities ended higher in the latest trading session, with real estate stocks driving gains after warehouse developer and landlord Segro rejected a USD 16.6 billion takeover proposal from U.S.-based logistics real estate company Prologis.
The benchmark FTSE 100 index closed 0.3% higher, while the domestically focused FTSE 250 index rose 0.8%, ending a four-session losing streak.
Real estate stocks were the strongest performers of the day. The FTSE 350 Real Estate Investment Trusts Index surged 6.9%, while the broader real estate sector gained 6.3%.
Segro was the top performer on the FTSE 100, jumping 17.4% after Prologis called on shareholders to encourage the company's board to engage in discussions regarding the proposed acquisition. Prologis argued that Segro's valuation did not fully reflect the company's underlying potential.
The development comes amid continued investor interest in logistics and warehouse assets, a sector that has benefited from the growth of e-commerce and supply chain infrastructure demand across Europe.
Political developments also remained in focus following Prime Minister Keir Starmer's resignation earlier this week, which has triggered a leadership contest expected to conclude between July and September.
On the economic front, market participants are increasingly expecting the Bank of England to raise borrowing costs by at least 25 basis points before the end of the year as policymakers monitor inflationary pressures linked to recent Middle East tensions.
However, some policymakers have signalled a more cautious approach. Bank of England policymaker Alan Taylor recently suggested that maintaining current interest rates for an extended period could be more appropriate as labour market data points to slowing economic momentum.
Among individual stocks, fund manager Liontrust gained 12.6% after reporting that net fund outflows had slowed during the current quarter, supported by international expansion efforts and stronger institutional investor inflows.
In contrast, commodity-linked sectors came under pressure as prices weakened. Industrial metal mining stocks fell 2.1%, precious metal miners declined 4.3%, and energy shares dropped 2.5%.
Healthcare-focused real estate investment trust Primary Health Properties rose 4.5% after announcing advanced discussions with an investor regarding a new joint venture involving its private hospital property portfolio.
Source Reuters
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