UK Indexes Rise; Jobless Claims Fall

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

The UK indexes rose led by banks and miners. UK jobless claims fall by 30,900 in May. Jupiter Fund prices IPO at 165 pence per share.

[R]4:30 PM London – The UK indexes rose led by banks and miners. UK jobless claims fall by 30,900 in May. Jupiter Fund prices IPO at 165 pence per share.[/R]

Intertek buys Expertises Technologies & Services Analyses. Gulf Coast revises oil leak estimate between 35,000 and 60,000 barrels per day.

In London FTSE 100 Index traded higher 3.99 or 0.08% to 5,221.81 and the pound edged lower to close at $1.477 and edged higher to close at €1.203.

The number of people claiming jobseeker''s allowance in the UK decreased 30,900 to reach 1.48 million in May, the Office for National Statistics said today. This was the first time the claimant count has been below 1.5 million since March 2009. The claimant count rate fell to 4.6% in May from 4.7% in April.

The unemployment rate for the three months to April 2010 was 7.9%, up 0.1 percentage point on the quarter. The number of unemployed people increased by 23,000 over the quarter to reach 2.47 million.

The outflow of oil from the ruptured well at the bottom of the Gulf of Mexico has increased voluminously, according to the latest estimates by U.S. government scientists.

Scientists led by Energy Secretary Steven Chu said that anywhere from 35,000 to 60,000 barrels of oil per day was flowing from the leaking riser pipe after the Deepwater Horizon oil rig sank into the sea bed while drilling for BP Plc in Mississippi Canyon Block 252 on April 20.

The British firm believes it can raise the capture rate to 53,000 barrels by the end of the month and could handle a flow of 60,000-80,000 barrels per day by mid-July.

President Barack Obama vowed to ""fight this spill with everything we''ve got for as long as it takes."" He also said that the government ""will make BP pay for the damage their company has caused, and do whatever is necessary to help the Gulf Coast and its people recover from this tragedy.""

Intertek Group plc announced the signing of an agreement to acquire Expertises Technologies & Services Analyses S.A or ETSA, an oil inspection and testing company in France. ETSA would enhance Intertek''s market position, providing a platform for the outsourcing of laboratory R&D on new-fuels development and refining support services in France, the company added.

Wolfhart Hauser, chief executive of Intertek, commented, ""ETSA will expand Intertek''s share of the French oil and gas testing and inspection market and increase our ability to support more outsourcing of new-fuels R&D and refinery support by local and global clients. The acquisition also adds new laboratory testing capabilities and will bring operational synergies to our European oil and gas laboratory network.""

Jupiter Fund Management Plc set the pricing of its initial public offering at 165 pence per share today. The company issued 133.50 million new ordinary shares and sold 20.30 million existing shares, representing in aggregate 34% of the enlarged issued ordinary share capital, at admission to trading on the London Stock Exchange, of 457.70 million, assuming no exercise of the over-allotment option.

Jupiter said the primary proceeds of the IPO and the capital restructuring, which will take effect on admission, will strengthen its balance sheet to a level the Directors believe will be beneficial to the business, clients and shareholders over the long-term.

Jupiter shares have started conditional dealings on the London Stock Exchange today under the ticker symbol JUP. Admission to the premium listing segment of the official list of the FSA and to trading on the main market for listed securities of the LSE and the commencement of unconditional dealings are expected to take place on June 21, 2010.

Gainers & Losers

BP Plc, the oil and gas company rose 1.1% to 345.90 pence.

Cairn Energy PLC, the oil and gas exploration firm rose 0.9% to 430.10 pence.

Filtrona plc, the plastic and fiber products supplier surges 16.1% to 227.70 pence.

GKN plc, the automotive and aerospace engineer rose 0.1% to 129.70 pence.

Intertek Group plc rose 0.2% to 1,452.00 pence after the provider of quality checking and safety services has signed an agreement to acquire Expertises Technologies & Services Analyses S.A, an oil inspection and testing company in France.

J Sainsbury plc rose 0.7% to 326.90 pence after the supermarket reported total sales for the first quarter rose 7.6% and like-for-like sales rose 4.6%.

Kea Petroleum Plc, the oil and gas explorer was unchanged at 21.50 pence.

Meggitt PLC, the aerospace and defense group fell 0.1% to 318.00 pence.

Mouchel Group plc, the consulting and business services company fell 6.3% to 147.00 pence.

RIT Capital Partners plc rose 1.9% to 1,136.00 pence after the investment trust said fiscal year 2010 total income rose 220% to £127.5 million from £39.8 million a year ago. Net profit for the year was £472.6 million or 306.3 pence per diluted share compared to net loss of £315.4 million or 203.7 pence per share a year ago.

The Royal Bank of Scotland Group plc rose 2.7% to 45.43 pence.

Safestore Holdings plc rose 5.8% to 117.50 pence after the self-storage company said first half revenues rose 2.8% to £42.4 million from £41.3 million a year ago. Net profit for the first half was £4.8 million or 2.51 pence per diluted share compared to net loss of £6.8 million or 3.60 pence per share a year ago.

United Utilities Group PLC, the water company fell 3.8% to 538.00 pence.