The FTSE 100 finished higher on Wednesday as strong gains in property stocks and housebuilders offset weakness in miners and energy companies, with falling UK gilt yields adding further support to rate-sensitive parts of the market.
The index rose 32.78 points, or 0.3%, to 10,461.63, while the FTSE 250 advanced 0.8% to 23,101.52.
Segro was the standout mover after rejecting a £12.6 billion takeover proposal from US logistics group Prologis. The warehouse landlord said the offer was “opportunistically timed” and “a long way short” of its valuation, sending shares up 17% and triggering a wider lift across the property sector.
Tritax Big Box REIT rose 6.4%, while British Land and Land Securities each gained 4.1% as investors rotated into real estate names.
Housebuilders also advanced, with Barratt Redrow up 6.6% and Persimmon rising 5.8%. Berkeley Group added further support after reporting full-year profit slightly ahead of guidance.
A steady decline in UK government bond yields reinforced the move. The 10-year gilt yield fell to 4.69% from 4.75%, extending a recent pullback from levels above 5% seen during earlier geopolitical tension. Lower yields supported sectors sensitive to borrowing costs, particularly property and housing.
Energy and mining stocks moved lower as commodity prices fell across both oil and metals. Brent crude dropped to $73.45 a barrel from $77.10, falling below $75 for the first time since the start of the Middle East conflict. That decline weighed on BP, which fell 3.7%, and Shell, down 1.9%.
Mining stocks also came under pressure as metals weakened, with Glencore down 2.5%, Anglo American 2.6% lower, and Fresnillo off 2.8%.
Gold slipped to $4,014.40 an ounce from $4,134.67 as expectations of further US interest rate rises and a firmer dollar continued to weigh on bullion.
Gamma Communications fell 5.4% after Providence Equity Partners withdrew from a consortium considering a bid for the company. Epiris said it was still assessing options, while earlier participants had already stepped back.
B&M European Value Retail surged 13% after appointing Asda executive Atheeq Akbar as its new chief financial officer.
In Europe, the CAC 40 in Paris closed 0.5% higher, while Germany’s DAX 40 fell 0.6%.
In New York, stocks struggled to hold direction after an early rebound from Tuesday’s tech-led sell-off. The Nasdaq fell 0.4% and the S&P 500 lost 0.2% as AI-linked stocks remained under pressure, while the Dow Jones rose 0.2% thanks to lighter exposure to the technology sector.