Sector movers: Investors turn away from beverages
Drinks firm SABMiller's trading update has depressed the beverages sector this morning. The shares have slipped lower, dragging Diageo and Scottish & Newcastle with them, after the group said its underlying financial performance has been in line with expectations.
On an organic basis, lager volumes for the third quarter grew by 4% and 9% for the year to date. It said revenue continues to benefit from price increases which have offset the impact of higher input costs.
Meanwhile, Magners cider group C&C's hangover still shows no sign of easing as it slumps further today following yesterday's profits warning.
Real estate stocks are in demand after Morgan Stanley released a generally upbeat review of the sector.
The US investment bank said it expects UK property stocks to climb by at least 20% in the first half of 2008, boosted by interest rate cuts, adding that they may then fall by as much as 50%.
British Land is the sector's best performer. Morgan Stanley upgraded the real estate company to 'overweight' from 'underweight' and lifted its price target to 390p from 270p.
Shares in British Land have already risen this week on news that investor Laxey plans to buy £1bn worth of property stocks followed by JP Morgan selecting British Land as one of its top picks in the European property sector.
Top performing sectors so far today
Technology Hardware & Equipment 234.60 +5.20%
Real Estate 3,624.10 +4.85%
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Industrial Transportation 3,252.40 +2.33%
Software & Computer Services 443.10 +2.14%
Travel & Leisure 4,841.70 +2.09%
Bottom performing sectors so far today
Mining 20,645.10 -2.60%
Beverages 6,518.80 -2.46%
Oil Equipment Services & Distribution 13,934.40 -1.18%
Oil & Gas Producers 7,815.50 -1.11%
Tobacco 24,982.70 -0.74%
