UK Stocks Higher; BP Drops, African Barrick Gold Up 2%

Marcus Jacob
25 Mar, 2011
New York City

UK stocks edged higher and closed up 3.2% in the week. BP plc lost an arbitration ruling against its Russian partner in a venture TNK-BP. African Barrick Gold soared 2% after it discover more gold in Tanzania.

[R]5:00 PM London – UK stocks edged higher and closed up 3.2% in the week. BP plc lost an arbitration ruling against its Russian partner in a venture TNK-BP. African Barrick Gold soared 2% after it discover more gold in Tanzania.[/R]

FTSE 100 index increased 19.89 or 0.3% to 5,900.76 and the FTSE All-Share Index increased 0.3% to 3,065.83.

BP Plc edged 0.7% lower after it lost an arbitration claim with its partner in a Russian venture TNK-BP. The UK oil giant is in a deal with Russian state controlled oil company OAO Rosneft

BP’ partner represented by AAR group won a temporary stay against the deal with Rosneft which was extended by an arbitration tribunal last night and sought that TNK-BP is the only company that has right to pursue new opportunities in Russia.

BP in a deal with Rosneft plans to explore arctic region that represents one of the largest oil reserves in the world.

In a deal between the two companies that was widely publicized in Russia and lauded by Russian Prime Minister Vladimir Putin on March 14, BP agreed to swap 5% of its shared for a 9.5% stake in Rosneft.

BP plc declined 0.3% to 479.52 pence.

BHP Billiton Announces $13 billion Capital Expenses Plan

BHP Billiton detailed its $13 billion of the $80 billion investment plan.

The mining giant will spend $6 billion to expand its iron ore mining operation in Western Australia, spend $5.5 billion to increase metallurgical coal operation in Queensland and a coal handling terminal and $400 million resume a coal mine.

BHP Billiton plc declined 0.4% to 2,348.50 pence.

Stock Movers

African Barrick Gold surged 1.9% to 539 pence after the miner discovered additional gold at its mine in Nyanzaga project in Tanzania.

Betfair Group increased 2.5% to 966 pence.

Drax Group Plc increased 4.2% to 387.40 after the positive comments from an analyst at Evolution Securities.

EasyJet declined 1% to 324.50 pence after the target price at Credit Suisse was lowered 32% and cited higher fuel price and limited growth in the next year.

Euromoney Institutional Investor dropped 12.5% to 685 pence after the publisher and events organizer said half-year trading is “in-line with management expectations but expansion in training business has “struggled.”

Songbird Estates Plc increased 2.1% to 144 pence after the real estate developer in the Canary Wharf said net income soared to 277.8 million pounds in 2010 from 131 million pounds in 2009 on a one-time gain from the sale of building to JP Morgan Chase & Co.

Of the stocks in the FTSE 250 index, Party Gaming led the gainers with a rise of 4.9% followed by increase in Cetamin Egypt Ltd of 4.08% and SVG Capital of 4.02%.

Of the stocks in the index, Redrow led the decliners with a loss of 4.6% followed by losses in Cable & Wireless Communications of 2.9% and Taylor and Wimpey of 2.8%.