Yahoo Finance Market report: Capital & Counties slips over cash fears
Capital & Counties Properties took a tumble after it shaved £131m off the value of its Earls Court “master plan” as London’s housing market plummets and the local council ramps up the pressure on developers to provide more affordable housing.
The FTSE 250 company slashed the value of its huge Earls Court portfolio, worth around £1bn, as priced-out house-hunters shun London’s property market. The company also acknowledged that it is facing political difficulties as residents attempt to block parts of the development in west London.
Concerns are also rising that far-left activist group Momentum will seize more control of the council in forthcoming local elections and bolster demands for additional affordable housing.
The company has been trying to entice investment for years but is “running out of rope” by marking up its Covent Garden assets to offset the decline of its other project, broker Jefferies warned. With fears that it is starting to run out of cash, Capital & Counties slipped 6.7p to 272.2p.
Elsewhere, private healthcare provider Spire soared to the top of London’s leaderboard in intraday trade as market rumours swirled that it is in the crosshairs of US giant HCA. Biggest shareholder Mediclinic attempted to snap up the firm in a £1.2bn swoop last October and City chatter speculated that Spire’s larger portfolio outside London would help fill HCA’s blind spot beyond the capital. Thin trading volumes indicated that the rumours were yet to win credence with investors and Spire’s shares pulled back from a 9.3pc surge to finish 5.8pc, or 13.6p, higher at 246.6p.
The City was even less convinced by broker Investec speculating that China National Tobacco could be in the frame to snap up tobacco giant Imperial Brands. Despite its analysts insisting that bid interest “looks more likely now than at any time in the past” and continued speculation that Japan Tobacco is poised to swoop, the FTSE 100 company inched down 9.5p to £26.66.
Troubled telecoms company TalkTalk slumped 6.2p to 94.5p, a fresh all-time low, amid market speculation that the bookrunners on its controversial £200m cash injection earlier this month have dumped shares left over from the placing. Demand may have been tepid, according to City sources.
Mining giant Anglo American gained 56.8p to £17.97 ahead of its full-year figures today while ITV nudged up 0.9p to 172.3p after Morgan Stanley told clients that new boss Dame Carolyn McCall will opt to “refresh rather than transform”.
Investors piling into Glencore and Lloyds after their bumper payouts helped the FTSE 100’s rebound get back on track. As traders nervously awaited key Federal Reserve meeting minutes, the blue-chip index gained 34.80 points to 7,281.57.
