Rodamco’s agreed £153m bid for Scottish Metropolitan last Thursday triggered a welcome burst of strength in property shares at the end of the week.

Hammerson, Great Portland and Land Securities were the main beneficiaries of the ScotMet takeover, ending the week up 5%, 7% and 3.5% respectively.

British Land also had a good week, thanks to a bullish note from ABN Amro on its City holdings, gaining 4% to 427.75p. The analysts’ report also helped City specialist Wates City, which rose 4.5% to 75p after a recent poor run. MEPC, up 5%, and Canary Wharf, which rose 4%, completed a good week for the majors.

Only Liberty International, Capital Shopping Centres and Slough underperformed the 3% rise in the Real Estate Index to 1818. This was double the 1.4% rise in the All-Share to 3002, which was helped by a strong performance from the stock market’s biggest stock, Vodafone AirTouch.

Among the smaller property stocks there were good performances from Mucklow. Quintain and Safeland – which all rose 8% – and Frogmore, Bourne End, and Tops Estates, all up 7%.

Topics