FTSE Soars 1.7%, Legal & General Net Down, Premier Farnell Net Up

Arthi Gupta
17 Mar, 2011
New York City

The UK indexes rebounded ahead of the Group of Seven finance ministers meeting. UK inflation estimated to rise to the highest level since August 2008. The OECD forecasted subdued economic growth for UK in 2011. Legal & General fiscal year 2010 revenue and net declined.

[R]4:00 PM London – The UK indexes rebounded ahead of the Group of Seven finance ministers meeting. UK inflation estimated to rise to the highest level since August 2008. The OECD forecasted subdued economic growth for UK in 2011. Legal & General fiscal year 2010 revenue and net declined.[/R]

World indexes advanced after investors are hoping that a meeting of Group of Seven finance ministers tomorrow morning Japan local time may provide easier monetary stance around world while Japan battles multiple crisis.

Oil prices rebounded above $100 a barrel in New York on fresh reports of turmoil in the Arab world. Intense fighting is reported in Libya with pro-Gaddafi forces taking a stronghold.

The UN’s human rights chief called the crackdown on anti-government protestors “shocking and illegal” but failed to denounce the occupation of Iraq and abuses in Afghanistan.

The violence in the Arab world overshadowed the impact of the earthquake that struck Japan last Friday.

Financial loss incurred due to the earthquake and the subsequent catastrophe has reached £134 billion. Different insurance industry associations in the U.S. and Europe have ranked the latest Japan disaster as one of the five costliest in the past thirty years.

Barclays Capital revised its earlier estimates of over 15 trillion yen of costs from the earthquake and tsunami to be anywhere between 12 trillion yen and 17 trillion yen now or 2.4% to 3.4% of GDP.

In London, FTSE 100 Index surged 100.44 or 1.79% to 5,697.84 and the pound edged higher to close at $1.6143.

Survey Estimates UK Inflation to Rise

Britons inflation expectations for the year ahead rose to the highest level since August 2008, a survey from the Bank of England and GfK NOP showed on Thursday.

Consumers'' one-year ahead inflation expectations rose to 4% from 3.9% in November, the February inflation attitudes survey showed. Respondents forecast inflation to slow to 3.4% during twelve months after next year.

OECD Forecasts Subdued Growth for UK

UK is likely to see subdued economic growth this year and next, the Organization for Economic Co-operation and Development said Wednesday.

Spending cuts will curb government consumption, investment and household income growth over the 2011-12 period, but will bring long-term gain,” the OECD said.

OECD expects the British economy to expand by 1.5% this year, down from 1.7% growth it had predicted in November. At the same time, it retained 2% growth outlook for 2012.

Logicalis Buys Inca Software

Datatec Ltd. said its subsidiary Logicalis agreed to acquire Inca Software Ltd. from its parent company, Avisen Plc for a total equity value consideration of £7.3 million pounds.

Logicalis would pay a maximum of £7.3 million in cash, of which £6.0 million would be paid on completion and £1.3 million one year later. In addition, Logicalis would assume £0.7 million of debt.

Gainers & Losers

Aegis Group plc gained 2.76% to 134.00 pence after the investment holding company reported fiscal year 2010 revenue climbed 8.4% to £1,459.4 million compared to £1,346.5 million in the prior year.

Profit in the period declined 34.3% to £41.2 million or 3.6 pence per share from £62.7 million or 5.5 pence per a year ago.

Legal & General Group Plc fell 0.81% to 110.20 pence after the insurer said full-year 2010 total revenue decreased 12.2% to £38.44 billion from £43.79 billion in the comparable period.

The profit according to IFRS accounting for the year slid 5% to £820 million or 13.88 pence per share from £863 million or 14.73 pence per share a year earlier.

Premier Farnell plc climbed 1.19% to 279.90 pence after the distributor of electronic components said fourth quarter sales climbed 17% to £242.5 million compared with £207.5 million in the comparable period a year ago.

Profit for the period increased 34.4% to £16.8 million or 4.5 pence per share versus £12.5 million or 3.4 pence per share in the prior-year quarter.

Savills plc dropped 1.58% to 368.10 pence after the property advisory company stated fiscal year 2010 revenue grew 21% to £677.0 million from £560.7 million a year ago.

Net income during the period gained 181% to £25.0 million or 19.8 pence per share versus £8.9 million or 6.9 pence per share last year.

SIG plc surged 7.60% to 130.30 pence after the supplier of insulation, roofing, commercial interiors and specialist construction products reported fiscal year 2010 revenues fell 1.8% to £2.67 billion from £2.72 billion in the prior year.

Loss for the year widened 69% to £77.1 million or 13 pence per share versus loss of £45.6 million or 9.7 pence per share last year.

Statpro Group Plc climbed 0.64% to 118.00 pence after the provider of asset valuation services and portfolio analysis solutions signed a multi-year contract with RBC Dexia Investor Services, or RBCD, for the supply of StatPro Revolution to RBCD''s clients.

TT electronics Plc advanced 2.52% to 163.00 pence after the sensor and electronic component technology reported fiscal year 2010 revenue improved 23.3% to £571.3 million from £463.5 million last year. Profit generated in the year was £25.9 million or 16.7 pence per share versus a loss of £19.6 million or 12.6 pence per share in the prior year.