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09 Sep, 2020 17:27 09 Sep, 2020 17:27

Sector movers: Telecommunications catches a bid as investors overhear M&A talk

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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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Important Legal Notice about News Sources

 

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.