STOCKS NEWS UK SMALL-Segro up after rights announcement

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Europe [STXNEWS/EU] Real-time Equity News [E] [GB/EQUITY]

UK [STXNEWS/UK] Stocks on the move [HOT-RTRS]

UK smallcaps [STX/UKSC]

12:28 GMT 04March2009-Segro up after rights announcement

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Shares in property company Segro Plc (SGRO.L) rise 7 percent after the company announces a larger-than-expected 524 million pound rights issue to pay down debt.

KBC Peel Hunt, which upgrades the stock to "buy" from "hold," says: "The low TERP (theoretical ex-rights price) following the issue (15.1 pence), versus our forecast low-point NAV 32 pence, suggests the stock is a fundamental buy."

The brokerage also points out that while "dilution of value is great at the issue price, Segro has managed to raise a substantial amount of capital and beaten its contemporary Brixton (BXTN.L) to the market".

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12:04GMT 04March2009-UK small caps gain 1.1 percent midday

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The FTSE Small Cap index .FTSC gains 1.1 percent in midday trade, faring worse than both the blue chips .FTSE and the midcaps .FTMC, up 1.9 percent and 2.2 percent, respectively.