FTSE 100 Live: Index Opens Lower at 10,439 as Keir Starmer’s Resignation and Tech Sell-off Hit UK Stocks

The FTSE 100 opened 14 points lower at 10,439 amid easing tensions in the Strait of Hormuz, squeezed by a sharp global selloff in tech and chip stocks, while investors also weighed fresh UK political developments following Keir Starmer’s resignation. Meanwhile, Brent crude futures fell 1.65% to $75.81 a barrel. US West Texas Intermediate (WTI) declined 1.61% to $72.03 ‌a barrel.

Gainers & Losers 

SEGRO surged 15.18% to £854.60, making it the top gainer on the FTSE 100, while Tritax Big Box REIT advanced 5.47% to £160.10. British Land climbed 3.93% to £417.40, and Land Securities gained 3.44% to £647. LondonMetric Property moved higher by 3.17% to £188.80, while Persimmon added 2.76% to £1,061.

On the downside, London Stock Exchange Group declined 2.68% to £8,146, while Halma fell 1.54% to £3,842. Experian slipped 1.47% to £2,483, and Lion Finance Group dropped 1.39% to £11,350. Spirax Group eased 0.74% to £6,750, while Diploma edged lower by 0.56% to £7,050.

Segro Rejects £12.6 billion Deal from Prologis

Prologis has gone public with a possible offer for Segro after the logistics property group rejected a £12.6 billion all-share takeover proposal.

Stifel analyst John Cahill said Segro's current market cap of £10 billion represents just under 20% of the entire UK REIT index. 

"If Segro were to be taken over, it would represent a serious challenge to the long-term viability of the UK Listed property sector," he says. 

"Given Prologis's size (market cap $139 billion) and financial resources at its disposal, an improved offer is clearly possible (though we have no knowledge of any such intentions)." Cahill says the Segro board and management team "would need to consider the best interests of shareholders given the UK REIT sector has traded at a significant discount to NTA for some years, impacting even companies such as Segro that benefit from fully liquid equity, a portfolio in a structurally supported sector, a strong balance sheet and a management team with a proven track record for excellence". 

Liontrust’s Outflow Continues

Liontrust Asset Management witnessed another year of outflows as clients continued to pull funds from the investment firm. 

Average assets under management have dropped from £25.7 billion to £21.8 billion, resulting in a net outflow of £276 million. Profit before tax fell 35% to £14.4 million for the year to the end of March, with earnings per share also tumbling to £36.7 per share compared to £56.8 in the previous year. 

Chief executive John Ions said: “RGH will add to our investment talent and styles, which will enable us to broaden distribution, meeting client demand that we could not do so before.”

Cavendish Witnessed Slight Revenue Growth

Investment bank Cavendish saw just a marginal uptick in revenue in the last financial year. The firm’s pre-tax profit declined to £3.5 million, from £3.7 million, on the back of “deliberate investment in regional expansion”. 

Revenue managed a slight 2.2% gain to £56.9 million from £55.6 million the prior year, but was held back by an absence of larger deal fees. 

Private market transactions were broadly unchanged at 34, but revenue fell 15.6% in response to the absence of big-ticket fees in the sector and Cavendish losing “two very sizeable deals” over the financial year. 

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Global Market View

In the US, Wall Street ended lower, with the Nasdaq tumbling 2.2% and the S&P 500 fell 1.4%. The Dow Jones proved more resilient, slipping just 0.1%.

In Asia, the Kospi rose 3.26% to 8,471.02. Tokyo’s Nikkei 225 dropped 0.88% to 69,788 points, while Taiwan’s TAIEX fell 2.24% to 46,043. In India, the Nifty 50 and the Sensex gained 0.91% and 1.07%, respectively.