The FTSE 100 closed higher on Wednesday, gaining 32.78 points (0.3%) to 10,461.63, as property stocks and housebuilders offset a slump in mining shares driven by falling metals prices. The FTSE 250 rose 175.05 points (0.8%) to 23,101.52, while the AIM All-Share fell 5.22 points (0.7%) to 777.37.
Segro Rejects £12.6bn Prologis Bid
UK warehouse landlord Segro surged 17% after rejecting a £12.6 billion takeover proposal from US logistics property giant Prologis. The FTSE 100-listed company described the offer as “opportunistically timed” and said it “falls a long way short” of its own valuation. Shore Capital analyst Andrew Saunders called the bid “underwhelming” and “highly inadequate,” adding that shareholders “should demand a far better offer from Prologis for it to be taken seriously and control to be ceded.”
Property Stocks Rally on Lower Bond Yields
The proposed bid sparked gains across property-exposed stocks, with Tritax Big Box REIT up 6.4%, and British Land and Land Securities both rising 4.1%. A further decline in UK bond yields also supported property and housebuilding stocks. The yield on 10-year gilts fell to 4.69% from 4.75% on Tuesday, continuing its recent decline from 4.84% at Friday's close and above 5.0% during the Middle East war. Progress in US-Iran talks, which helped cool oil prices and inflation worries, along with hopes for a quick UK political transition, have boosted sentiment and diminished expectations for a UK rate hike this year.
Housebuilders Barratt Redrow and Persimmon rose 6.6% and 5.8% respectively, with additional support from Berkeley Group, which reported full-year profit slightly ahead of guidance.
European Markets Mixed; Rheinmetall Plunges
In Europe, the CAC 40 in Paris ended up 0.5%, while the DAX 40 in Frankfurt fell 0.6%. Rheinmetall plunged 19% after the German defence ministry scrapped a multibillion-euro order for six F126 anti-submarine frigates originally placed with Dutch group Damen Naval. The ministry said it “decided not to proceed with the construction of a total of six F126-class frigates. This is in reaction to the significant delays affecting the project.” Instead, it will order eight smaller ships from German contractor TKMS. JPMorgan analyst David Perry said the news is a major setback for Rheinmetall, likely preventing the firm from meeting its order intake target in the second quarter of 2026 or for the full year.
Wall Street Rises; Currency and Bond Markets
In New York, the Dow Jones Industrial Average was up 1.0%, the S&P 500 rose 0.7%, and the Nasdaq Composite gained 0.6%. The pound traded at $1.3167, down from $1.3198 on Tuesday, while sterling eased to €1.1591 from €1.1595. The euro fell to $1.1358 from $1.1382, and the dollar strengthened to 161.76 yen from 161.54 yen. The US 10-year Treasury yield narrowed to 4.41% from 4.49%, and the 30-year yield trimmed to 4.86% from 4.93%.
Oil and Gold Prices Decline
Oil prices fell further as shipping traffic through the Strait of Hormuz picked up. Brent crude for August delivery traded at $73.45 a barrel, down from $77.10 on Tuesday, dipping below $75 for the first time since the start of the Middle East war. JPMorgan analyst Natesha Kaneva noted: “While the magnitude and duration of the oil shock evolved broadly as expected, the market has rebalanced through a meaningfully different mix of demand losses and inventory withdrawals than we initially assumed.”
Gold prices also declined, trading at $4,014.40 an ounce, down from $4,134.67, as expectations of tighter US monetary policy weighed on bullion. Tony Sage of Critical Metals Corp said the US Federal Reserve is expected to raise interest rates twice this year, reinforcing downward pressure on gold. Silver dipped 4.1% and copper fell 2.8%. The declines hit mining stocks: BP and Shell fell 3.7% and 1.9%, while Glencore, Anglo American, and Fresnillo slid 2.5%, 2.6%, and 2.8% respectively.
FTSE 250 Movers: Gamma Falls, B&M Rises
On the FTSE 250, Gamma Communications fell 5.4% after a potential suitor withdrew. Providence Equity Partners disclosed it was no longer part of the consortium bidding for Gamma and did not intend to make an offer. Epiris said it is continuing to consider its options. Earlier in June, Oakley Capital also backed down from making an offer. Conversely, B&M European Value Retail soared 13% after naming Atheeq Akbar, currently vice president of commercial finance at Asda, as its new chief financial officer. Mr Akbar will not join until February next year, which broker Peel Hunt said “is not ideal, although good people usually come with a decent wait,” adding that it is “a solid appointment, forming part of a broader overhaul of the finance function.”
FTSE 100 and FTSE 250 Leaders and Laggards
The biggest risers on the FTSE 100 were Segro (up 129.40p to 871.40p), Games Workshop (up 1,460.00p to 21,800.00p), Barratt Redrow (up 17.50p to 281.00p), Tritax Big Box REIT (up 9.70p to 161.50p), and Howden Joinery (up 47.50p to 846.50p). The biggest fallers were Endeavour Mining (down 150.00p to 3,754.00p), BP (down 18.60p to 480.05p), Metlen Energy & Metals (down 1.34p to 41.32p), Fresnillo (down 80.00p to 2,773.00p), and Anglo American (down 98.00p to 3,612.00p).
Looking Ahead
Thursday’s global economic calendar includes Australian unemployment figures and US inflation and GDP data. The local corporate calendar features full-year results from Halfords, Moonpig, and Wise.
