FTSE Up 1%; KNOC Affirmed Dana Offer

Arthi Gupta
24 Sep, 2010
New York City

The UK indexes climbed after positive U.S. economic data. Irish trade surplus widened in July. KNOC affirmed 64% shareholders of Dana Petroleum accepted its offer. The FDA restricted sale of GSK''s diabetes drug Avandia and the EMA suspended it.

[R]4:00 PM London – The UK indexes climbed after positive U.S. economic data. Irish trade surplus widened in July. KNOC affirmed 64% shareholders of Dana Petroleum accepted its offer. The FDA restricted sale of GSK''s diabetes drug Avandia and the EMA suspended it.[/R]

In London trading, FTSE 100 Index gained 58.41 or 1.07% to 5,605.49 and the pound edged higher to close at $1.5785.

Irish trade surplus widened to €4.20 billion in July from €3.25 billion surplus in June, the Central Statistics Office said today.

Exports value increased 12% on an annual basis to €7.89 billion in July, while the value of imports grew 1% to €3.69 billion. On a monthly basis, exports increased a seasonally adjusted 8% in July, while imports decreased 9%.

HSBC Holdings plc''s Chief Executive Michael Geoghegan is set to step down at the year end. Geoghegan is expected to be succeeded by Stuart Gulliver, the Head of HSBC''s investment bank.

GlaxoSmithKline plc confirmed on Thursday that following a review of its diabetes drug Avandia or rosiglitazone maleate by the U.S. Food and Drug Administration and the European Medicines Agency, each agency announced their individual regulatory decisions and the resulting actions.

In the wake of elevated cardiovascular risk, the U.S. FDA said that Avandia will be restricted to patients with Type 2 diabetes who cannot control their diabetes on other medications. In the U.S., all rosiglitazone-containing medicines such as Avandia, Avandamet and Avandaryl will remain available with additional safety labeling and restrictions for use, the company said.

The European Medicines Agency suspended the marketing authorization for the rosiglitazone-containing anti-diabetes medicines Avandia, Avandamet and Avaglim. These medicines will stop being available in Europe within the next few months.

The European Medicines Agency have stated that the suspension will remain in place unless convincing data are provided that identify a group of patients in whom the benefits of the medicine outweigh its risks.

AstraZeneca plc said that the Committee for Medicinal Products for Human Use issued a positive opinion on the marketing authorization application for BRILIQUE for the prevention of atherothrombotic events in adult patients with Acute Coronary Syndromes.

BRILIQUE, or ticagrelor, is an oral antiplatelet treatment for ACS.

Korea National Oil Corp. said that its 1,800 pence per share offer for Scotland-based Dana Petroleum plc has become wholly unconditional, as it received valid acceptances from 64.3% of Dana shareholders.

The company further said it has received valid acceptances to the convertible bond offer from Dana bondholders representing around 79.97%.

The boards of CSG Systems International Inc. and Intec Telecom Systems plc announced that they have reached agreement on the terms of a recommended cash offer, to be made by a wholly-owned unit undertaking of CSG, for the entire issued and to be issued share capital of Intec. The acquisition values Intec''s entire issued and to be issued share capital at around £236.7 million.

Kazakhmys plc announced the approval of $400 million of capital expenditure at the Ekibastuz GRES-1 power station. The company added that this significant expenditure accelerates the investment program by 12 months from the schedule planned in May 2008, when the business was purchased.

Ekibastuz GRES-1 now has 5 active turbines with a capacity of 2,500 MW, from an original nameplate capacity of 8 turbines and 4,000 MW. Rehabilitation work began on one of the three non-operational turbines at the end of 2009.

Gainers & Losers

Cove Energy PLC dropped 2.85% to 68.25 pence after the oil and gas explorer stated first-half pre-tax loss widened 1432% to $2.91 million from $0.19 million a year earlier and revenue for the first-half totaled $0.197 million.

Dillistone Group Plc soared 6.90% to 155.00 pence after the recruitment software provider first-half revenues increased 8% to £1.97 million from £1.82 million in the past year. Profit in the period rose 7.4% to £378,000 or 6.63 pence per share from £352,000 or 6.17 pence per share in 2009.

Filtronic plc gained 1.96% to 39.00 pence after the telecommunications equipment maker said trading in the first quarter improved from the weak final quarter of last year, though “conditions remain difficult overall.”

In an interim management statement for the period from June 1, the company said sales are around £1.0 million per month.

Mercury Recycling Group Plc declined 1.71% to 10.32 pence after the recycling company reported first-half revenues declined 9.5% to £1.33 million, from £1.47 million a year earlier. Profit for the period fell 37% to £114 thousand or 0.33 pence per share, compared to profit of £181 thousand or 0.53 pence per share in the prior-year period.

Metric Property Investments plc climbed 0.48% to 105.50 pence after the retail property investment company exchanged contracts on the acquisition of Nottingham Road Retail Park, Mansfield from private clients of CBRE Investors for £7.25 million.

Pinnacle Telecom Group Plc plunged 7.08% to 0.302 pence after the telecommunications services provider said it obtained a contract to provide temporary voice and data networks, which will be used to broadcast the sound, for BBC Radio 1Xtra Live from Wembley Arena on September 25.

The Mission Marketing Group plc slumped 12.59% to 11.80 pence after the marketing communications and advertising company first-half turnover increased 1.9% to £43.4 million from £42.6 million a year ago. Loss for the period was £0.11 million or 0.27 pence per share versus a profit of £1.22 million or 3.72 pence per share in the prior year period.