London: BP, Lloyds, Imperial Tobacco

Arthi Gupta
27 Apr, 2010
New York City

UK stocks closed lower tracking weakness in the euro zone markets. Weak metals and commodities also dragged the sentiment. Lloyds Banking Group estimated 2010 net income. BP Plc first quarter revenues surged 55% and net more than doubled. Imperial Tobacco Group PLC lifts dividend 16%.

[R]4:00 PM London, 11:00 AM New York – UK stocks closed lower tracking weakness in the euro zone markets. Weak metals and commodities also dragged the sentiment. Lloyds Banking Group estimated 2010 net income. BP Plc first quarter revenues surged 55% and net more than doubled. Imperial Tobacco Group PLC lifts dividend 16%.[/R]

Fears of a Greek default and contagion within the euro zone prompted a sell-off in Greek and Portuguese bonds. German Chancellor Angela Merkel said she won’t release funds until the nation has a “sustainable” plan to reduce its budget deficit.

Greece is hoping that the €45 billion ($60 billion) aid package from the EU and the IMF for the financial debt roll-over on May 19 will come in time, but Merkel''s comments has raised serious doubt about the speed of the bailout.

Merkel, addressing a campaign rally late yesterday in North Rhine-Westphalia, Germany’s most populous state, said her government is ready to release funds for Greece only after Prime Minister George Papandreou’s government agrees to a multi-year deficit-reduction program with the IMF and ECB.

Declining metal and oil prices dragged U.K stocks lower.

Lloyds Banking Group plc, the financial services group expects to deliver a profit in 2010 as losses on bad debts fall. The recovery was quicker than expected for the bailed-out lender, and improved the chances the government will start selling down its 41% stake. Lloyds rose 0.8% to 70.77 pence.

BP plc, an international oil and gas company said first quarter revenues rose 54.5% to $73.1 billion to $47.3 billion a year ago. Net profit for the quarter rose 135% to $6.1 billion or 31.99 cents per diluted share compared to net profit of $2.6 billion or 13.54 cents per share a year ago.

Imperial Tobacco Group PLC, an international tobacco company said first half revenues rose 8% to £13.37 billion to £12.42 billion a year ago. Net profit for the first half was £689 million or 67.8 pence per diluted share compared to net loss of £149 million or 14.7 pence per share a year ago

In London FTSE 100 Index closed lower 84.83 or 1.47% to 5,669.02 and the pound edged lower to close at $1.532 and to close at €1.153.

Gainers & Losers

ARM Holdings plc fell 0.7% to 256.70 pence after the microchip designer said first quarter revenues rose 16% to £92.3 million to £79.9 million a year ago. Net profit for the first quarter rose 100% to £19.6 million or 1.5 pence per diluted share compared to net profit of £9.8 million or 0.8 pence per share a year ago.

AstraZeneca PLC fell 0.6% to 2,881.00 pence.

BP Plc fell 0.8% to 621.50 pence after quarterly net surged 135%.

The Character Group plc surged 9.9% to 122.00 pence after the toy maker said first half revenues rose 14% to £43.1 million to £37.8 million a year ago. Net profit for the first half was £3.45 million or 9.98 pence per diluted share compared to net loss of £3.48 million or 8.44 pence per share a year ago.

Connaught plc surged 10.0% to 304.80 pence. The integrated service provider first half revenues rose 17% to £354.6 million to £303.8 million a year ago. Net profit for the first half fell 19% to £7.8 million or 5.6 pence per diluted share compared to net profit of £9.6 million or 7.6 pence per share a year ago.

Dunelm Group plc fell 4.4% to 412.90 pence.

Imperial Tobacco Group PLC rose 2.2% to 1,990.00 pence after first half net rose 8% and swung to profit in the first half.

Laird PLC rose 1.7% to 127.10 pence.

Lloyds Banking Group plc added 1.5% to 71.40 pence after the group is delivering good income growth on a combined businesses basis excluding last year’s impact from liability management transactions. Banking net interest margins are running in line with recent guidance of circa 2% for the full year.

N Brown Group plc rose 3.2% to 260.70 pence. The internet and catalog home shopping company said 2009 revenues rose 4.2% to £690.0 million to £662.5 million a year ago. Net profit for the year rose 0.6% to £62.5 million or 22.79 pence per diluted share compared to net profit of £62.1 million or 22.82 pence per share a year ago.

Premier Foods plc fell 7.7% to 27.80 pence.

Segro plc rose 1.0% to 322.10 pence after the industrial property group said the UK business secured £7.6 million of annualized rental income from new lettings in first quarter 2010 including £2.8 million in respect of pre-lets taken up in the quarter but signed in earlier periods.

Xchanging plc fell 1.4% to 212.00 pence.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 6 increased, 94 declined and 2 were unchanged.

Man Group Plc decliners in the FTSE 100 index with a loss of 5.19% followed by losses in Kazakhmys Plc of 4.80%, in Rio Tinto Plc of 4.26%, in Home Retail Group Plc of 4.07%, and in Old Mutual Plc of 3.95%.

Imperial Tobacco Group Plc led gainers in the FTSE 100 index with a rise of 1.49% followed by increase in Royal Dutch Shell Plc of 1.20%, in Royal Dutch Shell Plc of 1.06%, in Shire Plc of 0.48%, and in Scottish and Southern Energy Plc of 0.18%.