FTSE 100 movers: British Land NAV disappoints

17th Nov 2009 10:57

The increase in net asset value per share reported by property group British Land was slightly less than the market was expecting, broker Killik reckons, while the broker still has concerns about the outlook for the UK commercial property market.'Valuation increases are currently being driven by a lack of transactions and those that are occurring are focussed on prime properties, of which there is limited supply,' claims Jonathan Jackson, head of Equities at Killik. Though the shares offer an attractive yield of 5.2%, the broker predicts the premium of the share price to reported net asset value per share, currently running at around 30%, is unsustainable. The proposed demerger announced Tuesday morning by Cable & Wireless (C&W) is unlikely to unlock value from the telecoms company, according to broker finnCap.The broker thinks that C&W International (C&WI), the legacy of C&W's old colonial telephone business in Panama, the Caribbean, Macau and Monaco & Islands, will remain a viable investment for income investors, as the businesses are expected to continue to pump out cash.In contrast, the UK focused Worldwide business (C&WW) is expected to face a tough challenge from a reinvigorated BT Global division 'and even a new player (KCOM, reselling BT's products and aiming further up towards C&WW's target customer base),' the broker reckons.FTSE 100 - RisersICAP (IAP) 438.50p +3.35%Cable & Wireless (CW.) 142.00p +2.68%Scottish & Southern Energy (SSE) 1,115.00p +1.83%Centrica (CNA) 252.00p +1.78%Inmarsat (ISAT) 676.00p +1.65%Morrison (Wm) Supermarkets (MRW) 296.70p +1.57%Schroders NV (SDRC) 1,026.00p +1.38%Reckitt Benckiser Group (RB.) 3,107.00p +1.37%FTSE 100 - FallersResolution (RSL) 88.55p -4.78%Intertek Group (ITRK) 1,268.00p -3.21%British Land Co (BLND) 489.50p -2.78%Lonmin (LMI) 1,697.00p -2.47%Man Group (EMG) 362.30p -2.40%HSBC Holdings (HSBA) 744.50p -2.19%British Airways (BAY) 210.70p -2.14%Barclays (BARC) 317.60p -1.98%