Sector movers: REITS, electricity stocks drop
Tobacco stocks rose to the top of the leaderboard after analysts at Citi sung the praises of British American.
Big Yellow Group
1,068.00p
16:40 19/04/24
British American Tobacco
2,310.00p
17:15 19/04/24
Derwent London
2,032.00p
16:40 19/04/24
Electricity
9,964.26
17:10 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 250
19,391.30
17:09 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
Great Portland Estates
391.00p
16:40 19/04/24
Hammerson
26.68p
17:05 19/04/24
LondonMetric Property
194.50p
16:45 19/04/24
Real Estate Investment Trusts
2,211.73
17:09 19/04/24
SSE
1,660.50p
17:05 19/04/24
Tobacco
26,231.59
17:10 19/04/24
Workspace Group
492.00p
16:34 19/04/24
In a research note sent to clients, analysts Adam Spielman, Jemima Benstead and Ravi Sharma said the firm was producing "some of the best" organic sales growth in the European staples space and its acquisition of Reynolds American would only serve to make it stronger.
Indeed, the strengthening Russian ruble and Brazilian real meant the transaction would become a 'tailwind' in the second half of 2017.
It would also help lower the combined company´s exchange rate risk and enhance its ability to generate cash.
On the flip side, shares of Royal Mail were to be found at the bottom of the pile after the company reported flat revenues for the nine-month stretch to 25 December.
Following close behind, Real Estate Investment Trusts were lower after Jefferies downgraded its recommendation on Hammerson, Derwent London, Great Portland Estates and Workspace from 'hold' to 'underfperform'.
In parallel, Big Yellow and Londonmetric were downgraded from 'hold' to 'buy'.
"The last prop for asset values is the state sponsored coupon clipping by Local Authorities. When foreign capital flows reverse, property faces a toxic combination of falling rents and rising cap rates and REITs risk NAV deflation and earnings degradation," analysts at Jefferies said in a research note sent to clients.
Electricity stocks were also lower as SSE went ex-dividend and despite supportive comments from Credit Suisse.
Top performing sectors so far today
Tobacco 53,718.34 +1.30%
Automobiles & Parts 7,970.47 +0.41%
Food & Drug Retailers 3,116.68 +0.21%
Aerospace and Defence 4,677.64 +0.16%
Bottom performing sectors so far today
Industrial Transportation 2,943.30 -2.69%
Real Estate Investment Trusts 2,780.61 -2.43%
Electricity 9,042.35 -2.29%
Oil & Gas Producers 8,301.26 -1.94%
Oil Equipment, Services & Distribution 16,262.23 -1.41%