Owners of shopping centers have become the newest links in the retail chain to take a hit, as an investment bank published a cruel review of their prospects.
In a note Morgan Stanley said it would continue to scare & # 39; of investing in real estate stocks that seemed surprisingly cheap. These often include companies focused on the British retail sector.
Hammerson, owner of 22 shopping centers and 15 retail parks in Europe, saw £ 193.3m wipe out its market value when Morgan Stanley lowered its target price from 565p to 510p. His shares fell by 5 percent, or 24.6p, to 467.8p.
Intu, which has 17 British shopping centers, with 35 million customers a year through the doors, dropped by 3.4 percent or 5.5p to 156.25p because the bank recommended a lower target price of 150p. Intu and Hammerson recently flew the idea of a merger before Hammerson got cold feet.
Even luxury operators were not spared. Capital & Counties, which manages more than 1m square foot space in the Covent Garden in London and has brought brands such as Chanel and Mulberry to the district, scored 2.7 percent because the shares fell by 7.1p to 256.9 p.
Property values start to decline in the UK, warned Morgan Stanley – the Landingc managed Bluewater shopping center in Kent was valued at 11 percent in the six months to March. In addition, retailers from large shopping centers have been squeezed because rents are rising, business rates are rising and online shoppers are online.
The FTSE 100 was also heavily pressurized and ended the day 0.6 percent lower at 7516.03 points during renewed tensions between the US and China. Vodafone pushed 3.1 st, or 5.42p, to 167.52p, while Bank of America Merrill Lynch said the short headwind was on the rise.
Pressures such as competition in Spain and Italy, depreciation in the Turkish lira and higher costs could take their toll, analysts said.
Drug giants Astrazeneca and Glaxosmithkline did not succeed in increasing the index, despite the fact that each of their medicines has been approved for use in Europe.
Patients with type 2 diabetes can now control their blood sugar levels with a weekly injection, instead of having to breathe in several times a day with insulin, using an Astra device. The shares gained 0.4 percent or 21 pence and closed at 5910 p.
But Glaxo fell, with 0.6 percent or 9.2p to 1590.8p, although the EU gave the thumbs up for a drug for the treatment of children with severe asthma.
But one pharmaceutical company focused on the junior market in London managed to pull investors out of the way.
Duke Royalty, who invests substantial amounts in research laboratories in exchange for the future royalties they pay through drug giants using that research, climbed 3.2 percent or 1.4p to 45.9p.
The company announced that it has contracted its largest royalty financing agreement with £ 10 million with Interhealth Canada, which is developing for healthcare and healthcare facilities.
In the FTSE 250, the international energy company Hunting has been on its way and has restored its dividend, as rising raw materials prices and a recovering oil market have improved performance.
Investment Manager at AJ Bell, Russ Mold, said: & # 39; There is a very strong demand from the US for Hunting's perforating gun, a device used to penetrate oil and gas wells in preparation for production. & # 39; The shares rose by 11.9 percent or from 90.5p to 849p.
Inkjet company Xaar pressed little to impress investors in his latest trade update. The shares plummeted by 29.6 per cent or 72.75 pence to 173 p because the trade was disappointing. The board said that it & # 39; strategic options & # 39; was watching.