UK Indexes Close Higher; Q1 GDP Estimate 0.4%

Mayank Mehta
09 Apr, 2010
New York City

The private estimate of UK gross domestic product showed an expansion of 0.4%. Producer prices increased 0.9% in March and core index gained 0.7% from the previous month. Stocks closed higher in anticipation of final details of Greek bailout.

[R]4:00 PM London, 11:00 AM New York – The private estimate of UK gross domestic product showed an expansion of 0.4%. Producer prices increased 0.9% in March and core index gained 0.7% from the previous month. Stocks closed higher in anticipation of final details of Greek bailout.[/R]

UK gross domestic product increased 0.4% in the first quarter ending in March according to the National Institute of Economic and Social Research. The economic growth in the first quarter matched the expansion in the last quarter of 2009.

The official estimate of the gross domestic product will be released by the Office for National Statistics on April 23.

The estimate from the private research organization based in London noted that the output is 5.4% lower than two years in the same quarter and still lower than the “trend rate of growth rate.’

UK producer prices index or wholesale annual inflation for all manufactured products rose 5.0% in March from a year ago and 0.9% from the previous month according to the ONS.

Core producer prices, excluding food and tobacco and energy increased 0.7% from the previous month. Input price annual inflation rose by 10.1% on price increases in crude oil, and other imported materials equipment.

In London FTSE 100 Index closed higher 51.94 or 0.91% to 5,764.64 and the pound edged higher to close at $1.535 and edged lower to close at €1.142.

Gainers & Losers

Galliford Try plc rose 0.9% to 335.50 pence after the construction group with its joint venture partner has been appointed as contractor by Thames Water initially for over £100 million worth of work and potentially up to £500 million for the next five years.

Healthcare Locums plc surged 19.6% to 238.00 pence after the healthcare staff supplier indicated that the company will delay publishing its accounts and changes to its revenue recognition policy.

Michael Page International plc rose 2.1% to 432.60 pence after the specialist recruitment consultancy first quarter gross profit rose 2.9% to £97.8 million compared to £95.0 million a year ago. Group gross profit from permanent recruitment rose 13% to £74.9 million compared to £66.3 million a year ago.

Rio Tinto plc added 1.5% to 3,965.00 pence after the mining giant is currently negotiating contracts with its customers to supply iron ore priced on a quarterly basis.

RWS Holdings plc closed unchanged at 335.00 pence after the intellectual property group said in its first-half trading statement that profit for the period was impacted by reduced volatility in currency market and revenues are estimated to meet previous forecasts.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 84 increased, 18 declined and none were unchanged.

Schroders Plc decliners in the FTSE 100 index with a loss of 1.20% followed by losses in Autonomy Corporation Plc of 0.91%, in Wolseley Plc of 0.70%, in Rolls-Royce Group Plc of 0.65%, and in Investec Plc of 0.64%.

Fresnillo Plc led gainers in the FTSE 100 index with a rise of 3.10% followed by increase in Compass Group Plc of 2.86%, in Xstrata Plc of 2.73%, in Scottish and Southern Energy Plc of 2.66%, and in The British Land Company Plc of 2.63%.