Sector movers: Real estate stocks tumble

Defensive sectors had the edge on Thursday even as investors continued to bid the market higher, with tobacco stocks enjoying the strongest gains alongside the likes of Unilever, with the latter standing to gain from recent improved sentiment towards emerging markets.

Heading the other way, fixed line telecommunications were to be found at the bottom of the pile, after BT Group went ex-dividend.

Possibly also weighing on BT shares, Anna Soubry, the former business minister, said that the telecoms giant should split and Openreach should became a separate company.

In remarks to the BBC’s Radio 4’s Today programme, Soubry said she was surprised by Ofcom’s decision on the 26 July not to recommend they be separated.

Real estate shares following poor data on the sector’s health.

A survey by the Royal Institution of Charted Surveyors (Rics) showed British house price growth slowed in the month following the UK’s vote to leave the European Union.

Its headline price balance - a leading indicator of other house price indexes - fell to +5 in July from +15 in June, its lowest level since April 2013. Analysts had forecast a reading of +6.

Housebuilders and real estate investment stocks were also under pressure following the report with shares in Berkeley Group, Travis Perkins, British Land and Land Securities lower.

Travis Perkins was dragged down by a Barclays downgrade. The bank lowered its rating on the stock to ‘underweight’ from 'equalweight’ and cut its target price to 1,400p from 1,950p, saying Brexit will have a larger impact on the business than the market expects, which will hit the valuation.

Top performing sectors so far today
Tobacco 58,043.67 +1.94%
Personal Goods 31,216.81 +1.63%
Mobile Telecommunications 5,336.11 +1.30%
Chemicals 12,275.69 +1.27%
Gas, Water & Multiutilities 6,685.52 +1.04%

Bottom performing sectors so far today
Fixed Line Telecommunications 4,546.55 -2.27%
Real Estate Investment Trusts 2,932.74 -1.15%
Food & Drug Retailers 2,581.55 -1.08%
Real Estate Investment & Services 2,385.52 -0.55%
Life Insurance 7,081.96 -0.52%