Stocks of UK Property Firms Fall

According to the latest BBC report, British stocks have been witnessing declines for 2 days in a row with major financial and property companies at the top of the list. The decreases might well have been caused by the fact that the American list of problem banks has expanded significantly. On Thursday, British stocks continued their decline as it has been reported that a US-based company, Federal Deposit Insurance Corp., put 111 lenders (an increase of 36%) on its “problem banks” list. ICAP – a British money brokerage company – and its experts are determined that stocks are falling due to the pattern, which is now characteristic of the UK market: increased enthusiasm for stocks in the morning and decreased enthusiasm in the daytime. The stocks of RBS (Royal Bank of Scotland) and Lloyds Banking Group Plc declined by a min. of 1.9% while the stocks of the UK’s largest warehouse and business park owner – Segro – fell by as much as 3.8%. At the moment, the stocks of Lloyds, which, by the way, considers the sale of its fund management business, are priced at 104.7 pence, which is 3.5% lower than earlier. The stocks of Royal Bank of Scotland fell to 55.5 pence, a 1.9% decline. As for Sergo, its stocks saw the most significant decrease of 3.8%, probably due to the company’s report, which suggested that the company’s loss for the first 2 quarters of 2009 amounted to £480.1 million as a result of property depreciation. Also, Sergo was heavily influenced by a 20% decrease in the number of UK inquiries as well as by an increased rate of vacancy (11% vs. 9.8% in the beginning of the year). Another important player on the UK property market – the Land Securities Group Plc, one of largest British property investment trusts, - saw its stocks falling 2.4% to 619 pence.

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