UK Indexes Climb; Prudential Net Gains

Arthi Gupta
12 Aug, 2010
New York City

The UK indexes gained after GlaxoSmithKline won regulatory approval for ezogabine. UK mortgage possession claims eased in the second quarter. Irish CPI slackened in July. Centrica agrees to acquire Suncor gas assets for

[R]4:30 PM London – The UK indexes gained after GlaxoSmithKline won regulatory approval for ezogabine. UK mortgage possession claims eased in the second quarter. Irish CPI slackened in July. Centrica agrees to acquire Suncor gas assets for £229 million.[/R]

Apache Corp. completed the acquisition of BP Plc''s assets in the Permian Basin of West Texas and New Mexico for $3.1 billion.

In London, FTSE 100 Index traded higher 14.44 or 0.3% to 5,259.65 and the pound edged lower to close at $1.5591.

The number of mortgage possession claims issued and claims leading to orders made in the county courts of England and Wales dropped since the first quarter of 2008, according to the Ministry of Justice report released today.

Data showed that 17,774 mortgage possession claims were issued in the second quarter, which was 30% lower than in the second quarter of 2009 and 5% lower than in the first quarter of 2010. There were 13,389 orders for home repossession, down 29% annually and 7% lower than in the first quarter of 2010.

In another report, the number of properties taken into possession by first-charge mortgage lenders continued to fall in the UK, according to the latest data from the Council of Mortgage Lenders released today.

There were 9,400 repossessions in the second quarter, down from 9,800 in the first quarter. At the end of June, there were 178,200 loans with arrears equivalent to 2.5% or more of their mortgage balance. This was 5% lower than at the end of March and 17% lower than a year earlier.

The CML forecasts a total of 39,000 repossessions for 2010 as a whole, compared with the previous forecast of 53,000.

Ireland''s consumer prices decreased at a slower pace in July, according to a report published by the Central Statistics Office today.

The consumer price index dropped 0.1% year-on-year in July, compared to a 0.9% fall in June. It was the smallest decline since February 2009. Food and non-alcoholic beverages prices fell 3.8% annually in July, while clothing and footwear prices dropped 8.5%.

Month-on-month, the CPI remained unchanged July, compared to a 0.1% fall in the previous month. Food and non-alcoholic beverages prices rose 0.3%, while clothing and footwear prices fell 7.1%.

GlaxoSmithKline, the British drug manufacturer and California-based Valeant Pharmaceuticals International said that a U.S. Food and Drug Administration advisory committee voted unanimously on the safety and effectiveness of ezogabine to treat epilepsy.

After a review of the safety data, including urinary retention, infection and kidney stones, the majority of the committee members voted that urinary retention could be mitigated by patient monitoring.

The Peripheral and Central Nervous System Drugs Advisory Committee reviewed efficacy data from three pivotal studies of ezogabine and an integrated safety database including all patients. It was noted that the clinical test reduced the median number of partial-onset seizures in adults with epilepsy not adequately controlled on one to three concomitant anti-epileptic drugs compared with placebo.

Centrica PLC said its North American subsidiary; Direct Energy reached an agreement with Suncor Energy to acquire its natural gas assets in the Wildcat Hills region of Alberta, for a cash consideration of C$375 million or £229 million.

The company stated that this acquisition would provide Direct Energy with 241 billion cubic feet equivalent of additional natural gas reserves, an increase of about 60%, and an incremental 80 million cubic feet per day of natural gas production, thereby enabling Direct Energy to achieve significant economies of scale and operational efficiencies, resulting in lower unit costs of production and greater returns across its combined gas portfolio.

Centrica added that the transaction would enable Direct Energy to meet around 35% of its customers'' gas demand through its own sources of production.

The deal is expected to close during the fourth quarter of 2010, subject to regulatory approval and pre-emption rights on some of the assets.

Apache Corp., the oil and gas explorer completed the acquisition of BP Plc''s assets in the Permian Basin of West Texas and New Mexico for $3.1 billion.

Apache stated that it acquired 10 Permian field areas with estimated proved reserves of 141 million boe or 65% liquids, first-half 2010 net production of 15,110 barrels of liquids and 81 MMcf of gas per day, and two operated gas processing plants. The transaction also included 1.7 million gross acres, including 405 thousand net mineral and fee acres.

The company further stated that it paid $3.1 billion for the Permian properties, including a $1.5 billion deposit paid July 30 and the balance paid on closing. BP will continue to operate the properties on Apache''s behalf through Nov. 30.

Gainers & Losers

Brit Insurance Holdings N.V. rose 0.35% to 990.00 pence after the insurer announced the nomination of Scott Egan as Group Chief Financial Officer subject to regulatory approvals.

Cyprotex plc plummeted 15.6% to 4.01 pence after the drug discovery technology and information company stated first half revenues rose 1.2% to £2.48 million from £2.45 million in the previous year. Net profit for the first half slumped 67.8% to £50,481 or 0.03 pence per diluted share compared to net income of £156,597 or 0.09 pence per share in the previous year.

Dana Petroleum plc slumped 4% to 1,625 pence after the independent oil explorer provided an update relating to the unsolicited indicative conditional approach from Korea National Oil Corp. Dana''s chairman and chief executive met with the senior executive vice president of KNOC on August 6 in Calgary, Canada.

In the meeting, Dana requested clarity as to how, or if, KNOC would reflect recent and future developments within Dana in its indicative, conditional proposal of 1800 pence per Dana share.

De La Rue plc tumbled 8.82% to 724.00 pence after the commercial security printer announced that James Hussey resigned from the board as Chief Executive Officer. Nicholas Brookes, non-executive chairman, has been named executive chairman and Colin Child, Group finance director, has taken on the additional role of chief operating officer, both positions to be effective until a new CEO has been identified, the company added.

Lincat Group PLC surged 9.76% to 562.50 pence after the catering appliances and bar equipment maker reported first half revenue grew 6% to £15.84 million from £14.95 million in the year-ago period. Net income in the period soared 47% to £1.91 million from £1.30 million in the year-ago period. Pre-tax profit for the first-half surged 30.2% to £2.67 million from £2.05 million in the comparable period of last year.

Prudential PLC dropped 1.07% to 556.00 pence after the insurer reported first-half total revenue increased 24.2% to £17.04 billion from £13.72 billion a year ago. Net income was £442 million or 17.5 pence per share, compared to a loss of £254 million or 10.2 pence per share last year.

The company further stated that the 2010 interim dividend of 6.61 pence per ordinary share will be paid on September 23, 2010.

Wood Group (John) Plc declined 3.09% to 342.10 pence after the international energy services company after its joint venture, SKSWood, has got a two-year extension by Brunei Shell Petroleum for integrated service contracts in Asia Pacific.

The contract has the capacity to execute over one million productive man-hours of offshore work and to employ 1,200 people.