Slough Estates helps lift property sector .
LONDON 1996-08-29
A strong set of interim results and an upbeat outlook from Slough Estates Plc helped to boost the property sector on Thursday .
Shares in Slough , which earlier announced a 14 percent rise in first-half pretax profit to 37.4 million stg , climbed nearly six percent , or 14p to 250 pence at 1009 GMT , while British Land added 12-1 / 2p to 468p , Land Securities rose 5-1 / 2p to 691p and Hammerson was 8p higher at 390 .
Traders said positive comment from investment banks Merrill Lynch and SBC Warburg also fueled the gains .
One dealer said positive stances from Merrill Lynch and SBC Warburg were the key factors behind the gains .
A spokesman for Merrill Lynch said the bank was preparing to issue a note on the sector . "
We have been very positive ( on property ) , " he said , adding : " On a technical basis it is our most favoured sector . "
SBC Warburg issued an update on the property sector on Thursday , saying that most of the predictions it made at the start of the year were being realised .
" In the property market it is a case of so far , so good , " a member of SBC Warburg 's property team said .
SBC Warburg said it is maintaining its forecast for five percent growth in rental incomes during 1996 , but it has shaved its forecast for capital growth to five percent from six .
The spokesman said SBC Warburg has also put an " add " recommendation on Slough Estates ' shares , but added that this " is a general move , not because of the results . "
Slough 's chairman Sir Nigel Mobbs added to the bullish mood in the sector , saying in a statement that " with the prospect of a period of steady economic growth and low inflation ahead , there is good reason to believe that the property sector should continue its improvement . "
-- Jonathan Birt , London Newsroom +44 171 542 7717