UK Indexes Higher; Inflation Surges 3.3%

Arthi Gupta
14 Dec, 2010
New York City

The UK indexes edged higher tracking rising commodities prices. The UK inflation soared and home price index improved in November. BP agreed to sell Pakistan assets to China based United Energy Group for $775 million. Imagination Technologies net surges 93%.

[R]4:00 PM London – The UK indexes edged higher tracking rising commodities prices. The UK inflation soared and home price index improved in November. BP agreed to sell Pakistan assets to China based United Energy Group for $775 million. Imagination Technologies net surges 93%.[/R]

In London, FTSE 100 Index gained 10.30 or 0.18% to 5,870.93 and the pound edged lower to close at $1.5834.

UK Home Price Index Improves; Inflation Soars

The British house price balance continued to stay in negative territory in November, according to a survey conducted by the Royal Institution of Chartered Surveyors.

The Royal Institute of Chartered Surveyors House Price Balance moved to minus-44 in November from the October reading of minus-49.

New buyer inquiries declined to a net balance of minus-18 in November from minus-12 in October and minus-2 in September.

In another report, the UK home prices grew 5.5% annually in October compared to a 6.1% increase in September, the Department of Communities and Local Government said on Tuesday.

On a monthly basis home prices fell 0.1% in October after adjusting to seasonal variations, following a 0.8% decrease in September. The mix-adjusted average house price in the UK was £209,466 in October.

The UK annual inflation rose for the twelfth consecutive month to 3.3% in November, following a 3.2% increase in October, the Office for National Statistics said. This was above the Bank of England''s 2% target.

On a monthly basis, the CPI climbed 0.4% in November after rising 0.3% in October.

BP Sells Pakistan Assets to United Energy Group

BP announced today that it entered to sell almost all of its exploration and production assets in Pakistan to United Energy Group Limited. UEG will pay BP a total of $775 million in cash for these assets which consist of nine producing and exploration blocks in Sindh province and four offshore exploration blocks in the Arabian Sea.

The sale is part of BP''s plan to divest up to $30 billion of assets by the end of 2011.

Under the deal terms, China-based UEG would pay BP a cash deposit of $100 million with the balance of the proceeds due on the sale closure.

Capita Acquires iSoft Business Solutions

The Capita Group Plc acquired McKeown Software Limited, trading as iSoft Business Solutions, for a consideration of £23 million on a cash-free, debt-free basis.

Beazley Withdraws Bid for Hardy Underwriting

Beazley plc announced the withdrawal of a possible offer of up to 350 pence per share for Hardy Underwriting Bermuda Ltd. The acquisition interest was withdrawn following a meeting between the two companies yesterday, when Hardy''s advisers confirmed that its board would only be prepared to recommend a price substantially in excess of the final proposal.

Gainers & Losers

Bunzl plc gained 0.99% to 714.50 pence after the distribution and outsourcing company said in its trading statement relating to the twelve months ending December 31, 2010 that group revenue growth for the year is estimated to be between 3% and 4% due to underlying revenue growth and the positive impact from acquisitions and exchange.

Idox Plc fell 1.75% to 14.00 pence after the information and knowledge management company said it acquired McLaren Software Group Ltd. or McLaren for £1.0 million in cash.

Imagination Technologies Group plc surged 4.87% to 377.00 pence after the chip designer reported first-half revenue grew 16% to £44.1 million from £38.2 million last year. Profit during the period surged 93% to £11.66 million or 4.5 pence per share, from £6.04 million or 2.4 pence per share last year.

Travis Perkins Plc increased 2.98% to 1,001.00 pence after the builder merchant and home improvement retailer said its Group turnover for the eleven months to the end of November increased 6.5% compared with last year.

For the first eleven months of 2010, total turnover in merchant division grew 8.3% with like-for-like turnover per trading day up 7.8%. Like-for-like turnover per trading day for the last two months to November 30 improved 10.5%.

Whitbread Plc slumped 3.02% to 1,736.00 pence after the company engaged in the operation of hotels, restaurants and coffee shops said third quarter total sales grew 13.6% and like-for-like sales increased 6.8%. The Group added that in 2010/11 it would create over 1,500 new jobs.