UK Extends World Markets Gains; Regus Soars 15%, Essar Energy Drops 6%

Nigel Thomas
21 Mar, 2011
New York City

UK stocks soared tracking the gains in the European markets. Crude oil increased after UK and France led military attacks in Libya. Regus soared more than 15% after it estimated higher income in the current year. Jupiter Fund Management said its annual net soared six-fold.

[R]5:00 PM London – UK stocks soared tracking the gains in the European markets. Crude oil increased after UK and France led military attacks in Libya. Regus soared more than 15% after it estimated higher income. Jupiter Fund Management’s annual net soared six-fold. Essar Energy faces delays in coal power plants.[/R]

UK markets surged after investors focused on deal news and Japan nuclear crisis eased. Crude oil rebounded after allied forces struck military installation in Libya.

Tokyo Electric Power said it has reconnected power to two of the failed reactors at Fukushima Daiichi power plant prompting Japanese Prime Minister Naoto Kan said at a press conference he can see “light at the end of the tunnel.”

The military strike on Libya lifted crude futures but investors bid up the stock after AT&T agreed to acquire T-Mobile for $39 billion and Charles Schwab agreed to buy online options trading firm for $1 billion.

Crude oil futures increased to $102.70 a barrel after France and UK led a military attack to Libyan military targets near Bengazi that killed as many as 150 civilians.

The FTSE 100 index increased 66.70 or 1.2% to 5,785.90 and FTSE All-Share Index increased 1.2%.

Stock Movers

Vodafone Plc increased 3.7% to 175.95 pence after AT&T agreed to acquire T-Mobile USA limiting the number of players in U.S. market. Vodafone acquire 49% stake in Verizon Wireless in the U.S.

Punch Taverns Plc gained nearly 5% to 72.10 pence after the company is looking to split its Spirits division according to a report in the Sunday Times.

Regus Plc soared more than 14% to 114.50 pence after the global offices operator reported earnings higher than expected. The annual profit in 2010 dropped from £86.9 million to £7.8 million but the company guided higher income in the current year.

Essar Energy Plc declined 6.5% to 443.30 after the oil refiner also said its annual net income in 2010 increased to $248.3 million from $206.8 million in 2009 and earned gross refining margins of $6.60 a barrel compared to $4.20 a barrel.

The company is also expected to finalize its purchase for $350 million UK based Stanlow refinery controlled by Royal Dutch Shell in the next ten day according to its vice-chairman Prashant Ruia.

Essar also confirmed that it is facing difficulties in acquiring stable domestic coal sources for its power plants and Salaya 1 and Mahan 1 coal-fired power plants start will be delayed to third and fourth quarter respectively. The company is also close to finishing its upgrade of a new refinery at Vadinar, Gujarat, India.

Of the stocks listed in the FTSE 250 index, Regus led the gainers with a surge of 15.3% followed by Redrow with a rise of 6.3% and Centamin Egypt Ltd with a gain of 5.4%.

Exillon Energy led the decliners with a loss of 3.9% to 379.50 pence followed by losses in CPP Group of 3.6% of 293.10 pence and in Jupiter Fund Management of 3% to 288.90 pence.

Jupiter said annual net in 2010 increased to £42.4 million from £7.2 million in 2009.