UK PPI Rises 5.7%; BP Surges 7%

Arthi Gupta, Mayank Mehta and Sanjay Barot
11 Jun, 2010
New York City

UK indexes rose on positive economic data in China and India. UK wholesale inflation increased 5.7% in May and total production output gained 2.1% in April. Hammerson agrees to buy Leadenhall Court office building in London for

[R]4:30 PM London – UK indexes rose on positive economic data in China and India. UK wholesale inflation increased 5.7% in May and total production output gained 2.1% in April. Hammerson agrees to buy Leadenhall Court office building in London for £65 million.[/R]

BP Plc announces second block grant of $25 million to the State of Mississippi. The British government came to the defense of the battered oil giant, talking up the economic value of BP on both sides of the Atlantic.

Fuller, Smith & Turner Plc net surges 116%.

In London trading, FTSE 100 Index closed higher 26.57 or 0.52% to 5,159.07 and the pound edged lower to close at $1.462 and close at €1.206.

UK producer prices index or wholesale annual inflation for all manufactured products rose 5.7% in May. Input price annual inflation rose 11.2% largely on the price increases in petroleum and alcohol products.

Total production output in April rose 2.1% from a year ago. Output in mining declined 3.9% and energy fell 0.2%. Manufacturing output increased 3.4% in April from a year-ago month.

Hammerson plc, the real estate investment trust said on Friday it has agreed to buy a long leasehold interest in Leadenhall Court office building in London for a total consideration of £65 million, including transaction costs.

The 10,126 square meters property is located in City of London, at the corner of Gracechurch Street and Leadenhall Street, between Bank and Liverpool Street stations. Passing rents are £7.16 million a year payment, reflecting an initial yield of 11%.

Hammerson plc rose 0.60 pence or 0.17% and is currently trading at 359.10 pence on a volume of 0.3 million shares on the London Stock Exchange.

Gainers & Losers

BHP Billiton plc, the diversified natural resources company rose 0.1% to 1,879.00 pence.

BP Plc rose 7.0% to 391.25 pence after the international oil and gas company announced it is providing the State of Mississippi with an additional $25 million grant to continue implementation of the State''s Area Contingency Plan.

Fuller, Smith & Turner Plc rose 5.4% to 580.00 pence after the pubs operator and brewer said fiscal year 2010 revenues rose 8% to £227.7 million from £210.0 million a year ago. Net profit for the year rose 116% to £19.2 million or 33.82 pence per diluted share compared to net profit of £8.9 million or 15.83 pence per share a year ago.

Hammerson Plc fell 0.3% to 357.40 pence after the real estate investment trust has exchanged conditional contracts for the acquisition of a long leasehold interest in Leadenhall Court, a City of London office building.

Polar Capital Technology Trust PLC rose 0.3% to 278.00 pence after the investment trust said fiscal year 2010 net profit was £124.4 million or 98.38 pence per diluted share compared to net loss of £17.3 million or 13.28 pence per share a year ago.

Prudential plc, the international financial services company rose 0.09% to 550.00 pence.

Punch Taverns plc, the pub company rose 8.0% to 66.90 pence.

Talvivaara Mining Company Plc rose 4.3% to 375.70 pence.