UK Mortgage Approvals Fall to 19-Month Low; Indexes Slide

Arthi Gupta
23 Nov, 2010
New York City

The UK indexes slid on escalating tensions between North and South Korea and ongoing worries revolving around Ireland, Greece and Portugal. Traders focused on the bailout package for Ireland and on fears on a contagion in the euro region. The UK mortgage approvals declined in October.

[R]4:00 PM London – The UK indexes slid on escalating tensions between North and South Korea and ongoing worries revolving around Ireland, Greece and Portugal. Traders focused on the bailout package for Ireland and on fears on a contagion in the euro region. The UK mortgage approvals declined in October.[/R]

In London, FTSE 100 Index fell 65.07 or 1.14% to 5,615.68 and the pound edged lower to close at $1.5872.

UK Mortgage Approvals Dip

The UK banks approved 30,766 mortgages for home purchase in October, as against a downwardly revised 31,058 in September, the British Bankers'' Association said today. In terms of value, mortgage approvals for home purchase eased to £4.5 billion from £4.6 billion.

The BBA said the total number of mortgage approvals climbed to 73,026 in October from 72,734 in September.

Irish PPI Drops

Ireland''s factory gate prices decreased 2.5% on a monthly basis in October after stagnating in September, according to figures released by the Central Statistics Office today. On an annual basis, prices fell 0.7% in October following a 0.3% increase in September.

Producer prices for goods made for exports decreased 2.9% on a monthly basis and that for goods made for domestic sales fell 0.7% in October.

KCom Group Signs Revolving Credit Facility

KCOM Group Plc signed a committed £200 million, revolving credit facility, with maturity to July 2015, replacing the company''s existing £250 million facility, which was due to expire in March 2012.

KCOM Group noted that the facility is provided by a group of six banks comprising existing syndicate members, RBS, Barclays and Lloyds, who are joined by Yorkshire Bank, HSBC and Santander.

Gainers & Losers

Armour Group PLC plunged 6.05% to 9.63 pence after the consumer electronics group stated fiscal year 2010 revenues grew 10% to £56.6 million from £51.61 million a year ago. Full year net profit dropped 1% to £879,000, from £886,000 last year, hurt by higher expenses. However, earnings were 1.4 pence per share, flat with the prior year.

Centrica PLC fell 1.82% to 323.50 pence after the integrated energy company said that it is inviting holders of its outstanding £400 million 5.875% notes due 2012, €750 million 7.125% notes due 2013 and £350 million 5.125% notes due 2014 to tender their notes for purchase by the company, for cash.

De La Rue Plc plunged 10.11% to 560.00 pence after the security printer and papermaker reported first-half revenues fell 17% to £209.2 million, from £252.2 million last year. Profit in the period surged 113% to £66.1 million or 66.5 pence per share, from £31.1 million or 31.4 pence per share a year ago.

Goldplat plc surged 4.00% to 13.00 pence after the gold producer said it entered into a Memorandum of Agreement with Gulf Coast Resources Inc., a Canadian mining company for the acquisition of Gulf''s wholly-owned subsidiary company, Gulf Coast Resources Ltd.

HomeServe plc dipped 0.21% to 425.10 pence after the home insurance provider reported first-half total revenue advanced 11.3% to £171.05 million from £153.65 million in the comparable period a year ago. Profit for the period was £12.78 million, compared with a loss of £2.33 million last year.