FTSE Rises; BP Acquired China Oil Block

Arthi Gupta
13 Sep, 2010
New York City

The UK indexes gained after mortgage lending rose modestly in July. BAE Systems contemplated sale of platform solutions business. BP acquired interest in South China Sea. PZ Cussons plc advanced 1.8% after it reaffirmed annual outlook.

[R]4:30 PM London – The UK indexes gained after mortgage lending rose modestly in July. BAE Systems contemplated sale of platform solutions business. BP acquired interest in South China Sea. PZ Cussons plc advanced 1.8% after it reaffirmed annual outlook.[/R]

Tullow Oil furnished update on Owo-1 sidetrack.

The National Bureau of Statistics in China said industrial production rose 13.9% from a year ago in August, stronger than the 13.4% rate in the previous month and compared to estimate of 13%.

In London, FTSE 100 Index traded higher 58.98 or 1.07% to 5,560.62 and the pound edged higher to close at $1.5404.

The Group of Governors and Heads of Supervision agreed to substantially raise the amount of capital that banks must set to aside against potential losses. Internationally active banks must now hold a minimum 7% of assets as common equity - significantly higher than the international standard of 2%.

The number of loans made for home purchases in the UK rose in July, according to latest data released today.

The Council of Mortgage Lenders said the number of loans taken for home purchases rose 7% in volume and 9% in value terms in July compared to June. On a yearly basis, home loans increased 6% in volume and 15% in value terms.

BAE Systems plc, the British defense, security and aerospace company stated that it is looking for strategic options in connection with its Platform Solutions business, including a possible sale. Wells Fargo and JP Morgan are advising BAE Systems.

Earlier, the Wall Street Journal reported BAE Systems'' plan to put parts of its North American commercial aerospace business up for a sale seeking between $1.6 billion and $2 billion for the business.

BP announced today that its acquisition of an interest in block 42/05 in the South China Sea’s Pearl River Mouth Basin has been approved by the Chinese Government.

BP has acquired a 40.82% interest in the block from Devon Energy China, Ltd. The block covers an area of 6,939 square kilometers. Chevron acquired the remaining 59.18% and will be the operator during the exploration phase under the amendment agreements to a production sharing contract with China National Offshore Oil Corporation.

In another report, the company stated the true cost of the Gulf of Mexico disaster could be less than the $20 billion in an escrow account to cover claims from victims of the oil spill.

Tullow Oil plc said that the Owo-1 exploration sidetrack in the Deepwater Tano license offshore Ghana significantly extended the column of high quality light oil discovered by the Owo-1 well. The Owo-1 well encountered 53 meters of net oil pay and the sidetrack, drilled 0.6 km east of the Owo discovery well, encountered an additional 16 meters of net oil pay in the lower part of the same channel system.

Gainers & Losers

AstraZeneca PLC gained 0.29% to $51.93 after the biopharmaceutical company said it received the U.S. Food and Drug Administration approval for the 500 mg dose of Faslodex injection, replacing the previously approved monthly dose of 250 mg, for the treatment of hormone receptor-positive metastatic breast cancer in postmenopausal women with disease progression following antiestrogen therapy.

BAE Systems plc rose 1.55% to 327.90 pence after the defense, security and aerospace company engaged Wells Fargo and JP Morgan to advise on strategic options with regard to the Platform Solutions business, including a possible sale.

DM plc fell 0.74% to 6.70 pence after the direct marketing company engaged in customer recruitment and database management stated first-half revenue increased 16% to £13.45 million from £11.60 million in the comparable period. Net profit for the period rose 26.4% to £2.20 million or 1.32 pence per share versus net profit of £1.74 million or 1.14 pence per share in the year earlier period.

K3 Business Technology Group plc surged 10.55% to 129.90 pence after the supplier of computer software and consultancy reported pre-tax profit for the 18-month period ended June 30 of £4.77 million, following the change of accounting year end, from December 31 to June 30.

Networkers International Plc declined 2.50% to 27.30 pence after the company engaged in the information technology and telecommunications recruitment and services reported revenue for the first-half rose 4% to £71.99 million from £69.19 million in the same period last year. Profit before taxation declined 4.1% to £2.1 million from £2.19 million in the prior-year period.

Norkom Group Plc plunged 32.35% to 74.75 pence after the provider of financial crime and compliance solutions said it expects first-half 2011 revenues to be in the range of €22 million to €22.5 million. The board expects a modest return to revenue growth in the second six months of fiscal year 2011 against the prior year.

PZ Cussons plc advanced 1.79% to 335.00 pence after the soap maker in its interim management statement for the period June 1 to September 12, said that the performance has been in line with management expectations during the period but remains cautiously optimistic for the full-year outturn.

Tullow Oil plc increased 0.89% to 1,245.00 pence after the oil and gas explorer stated that the results of drilling and samples of reservoir fluids confirm that Owo is a major new oil field.

WPP Plc climbed 0.65% to 699.00 pence after the global communications services company said its wholly-owned operating company G2, the global brand activation agency network and a Grey Group company agreed to purchase a majority stake in DPI, one of Greater China''s integrated shopper-marketing consultancies.