FTSE Soars 2.3%; Manufacturing Plunges

Arthi Gupta
01 Sep, 2010
New York City

The UK indexes traded higher after positive global economic data. The UK manufacturing growth plunged to nine-month low in August. Irish live register of total unemployment rose for the sixth month in a row to August, manufacturing slackened in August and retail sales fell in July.

[R]4:30 PM London – The UK indexes traded higher after positive global economic data. The UK manufacturing growth plunged to nine-month low in August. Irish live register of total unemployment rose for the sixth month in a row to August, manufacturing slackened in August and retail sales fell in July.[/R]

Alterian purchased Intrepid Consultants for $11.5 million.

In London, FTSE 100 Index traded higher 121.96 or 2.33% to 5,347.18 and the pound edged higher to close at $1.5457.

British manufacturing sector logged the weakest growth in nine months with the increase in new orders losing momentum.

The seasonally adjusted Markit/CIPS Purchasing Managers Index fell to 54.3 in August from 56.9 in July, according to a survey data from Markit Economics released today.

Ireland’s live register of total full time and part time unemployed rose for the sixth month in a row to August, official data showed today.

The Central Statistics Office said seasonally adjusted total rose to 455,000 in August from July''s 452,500. The year-on-year increase in the August was 30,300.

Irish retail sales volume dropped a seasonally adjusted month-to-month 0.2% in July compared to the 0.3% decline in June, according to a report published by the Central Statistics Office today. Sales declined for the third successive month.

Trade in non-specialized stores grew 0.6% on a monthly basis and rose 1.5% annually. Sales for clothing, footwear and textiles fell 1% month-on-month.

Year-on-year, retail sales volume fell a seasonally adjusted 0.1% in July, following a 1% growth in June. Retail sales dropped for the first time in six months.

The Republic of Ireland''s manufacturing activity continued to slow in August despite a faster rise in the rate of incoming business.

Markit Economics said the NCB manufacturing purchasing managers'' index declined to a seasonally adjusted 51.1 compared to 51.4 in July.

BP agreed to sell its interests in ethylene and polyethylene production in Malaysia to Petronas. The agreement for 15% interest in Ethylene Malaysia Sdn Bhd and 60% interest in Polyethylene Malaysia Sdn Bhd, both of which are operated by Petronas, and are located at Kertih, on the east coast of Malaysia.

Under the terms of the agreement, Petronas will pay $363 million in cash to BP, inclusive of a balance sheet adjustment of $13 million and the repayment of a shareholder loan of $53 million. BP will also receive an EMSB pre-closing dividend payment amounting to $48 million, subject to EMSB Board approval.

Alterian plc, the software developer purchased Intrepid Consultants Inc., an international social media analytics and market research consultancy, for a total consideration of up to $11.5 million.

The company said that the Initial consideration of $3.5 million will be paid as $2.5 million cash from Alterian''s existing cash resources, and the issue of 361,427 new ordinary shares in the capital of Alterian at a price of 179.4 pence each.

Additional potential consideration of up to $7.35 million in total is payable during the period up to March 31, 2013 subject to the attainment of specific revenue performance metrics with a further $0.65 million available for bonuses for certain individuals based on their contribution to the achievement of those performance metrics.

Gainers & Losers

Barclays Bank PLC gained 1.96% to $21.10 after the financial institution announced that it has completed the sale of HomEq Servicing to Ocwen Loan Servicing LLC, a subsidiary of Ocwen Financial Corp.

Green Dragon Gas Limited fell 0.81% to $6.10 after the investment holding company reported first-half revenue rose 15% to $21.46 million from $18.72 million in the previous year. Net loss for the period narrowed 26.3% to $5.46 million or $0.045 per share compared with a net loss of $7.41 million or $0.069 per share in the comparable period.

Hargreaves Lansdown plc. Increased 0.23% to 390.00 pence after the investment broker and advise firm announced fiscal 2010 revenue rose 20% to £159.0 million from £132.8 million in the prior year. Profit before tax for the year increased 18% to £86.30 million from £73.08 million in the prior year.

IQE plc soared 8.31% to 27.26 pence after the manufacturer of advanced semiconductor materials reported first-half revenues increased 54% to £33.02 million from £21.42 million in the comparable period. Net profit in the period was £2.2 million or 0.44 pence per share versus a loss of £1.36 million or 0.31 pence per share last year.

Johnson Service Group plc dropped 1.52% to 16.25 pence after the dry-cleaning and specialist textile aftercare services provider reported first-half revenue slipped 3.5% to £113.0 million from £117.1 million last year. Loss before taxation in the period was £2.2 million, compared to profit of £5.9 million last year.

Vertu Motors plc surged 5.28% to 27.11 pence after the motor retailer in its trading update, said the board expects the full-year performance to be “in line with market expectations.”

The group''s private new car sales volumes increased in the five months to July by 6.7% on a like-for-like basis and by 35.2% overall as the number of sales outlets increased over the prior year.