FTSE 100 lower, pharma stocks hit by Trump’s RFK pick and Land Securities upgrades guidance as office and retail assets shine

“Pharmaceutical stocks left the FTSE 100 looking sickly on Friday morning as AstraZeneca and GSK shares came under pressure,” says AJ Bell Investment Director Russ Mould.

“The announcement of vaccine-sceptic Robert F. Kennedy Junior as health secretary pick for the incoming Trump administration has spooked investors in the sector, with US drug companies also seeing their shares come under significant pressure overnight. The impact on the sector is hard to judge fully at this stage but, at the very least, it will cause a good deal of uncertainty.

“The latest UK GDP figures offered evidence of the chilling effect of a Budget build-up filled with warnings about hard decisions. The government’s gloomy messaging proved to be a self-fulfilling prophecy as growth slowed significantly.”

Land Securities

“It feels like ages since a UK property outfit had something positive to say. Land Securities’ latest announcement is striking not just for the earnings upgrade contained within it but also the upbeat tone adopted by the company.

“A shift away from working from home has been beneficial to the real estate firm with upward inflation in rates for the best office assets, particularly in central London. The company is also seeing a strong recovery for its retail assets, with leading brands prioritising quality over quantity when it comes to outlets, supporting occupancy rates and rents in Land Securities’ prime locations.

“While there are promising signs, investors may want to see further evidence of improved performance before the wide discount to net asset value – the value of its properties minus any liabilities – narrows meaningfully.”

These articles are for information purposes only and are not a personal recommendation or advice.