Sector movers: Telecommunications catches a bid as investors overhear M&A talk
BT shares rallied on Wednesday, pushing its sector to the fore on the back of M&A speculation.
Bloomberg cited people familiar with the matter as saying that private equity firms, including CVC Capital Partners, have looked into the feasibility of a takeover of BT.
"I think there an absolute tonne of private equity money sniffing all around lots of UK equities - so expect more deals this autumn," said Markets.com chief market analyst Neil Wilson.
"And BT has a lot of valued tied up in OpenReach that is not fully realised so there is value in there that is not reflected in the share price."
In the mobile space, Vodafone caught a bid on the back of the reports around BT as did TalkTalk.
Tobacco stocks were also sought, helped by recent positive comments on the sector from various brokers.
Travel-related issues continued to be a drag however after the government announced a lower limit on gatherings from 30 to 6, with some analysts concerned that might be just the tip the iceberg.
Top performing sectors so far today
Fixed Line Telecommunications 1,346.13 +5.00%
Tobacco 27,819.35 +3.44%
Personal Goods 38,977.60 +3.18%
Automobiles & Parts 2,749.60 +2.64%
Mobile Telecommunications 2,503.13 +2.01%
Bottom performing sectors so far today
Travel & Leisure 6,644.74 -1.42%
Industrial Transportation 2,057.41 -1.14%
Aerospace and Defence 3,247.20 -0.66%
Food Producers & Processors 6,552.63 -0.30%
Life Insurance 6,085.18 -0.13%
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