UK Retail Sales, Services Index Climbs; Tullow in $2.9 Billion Deal

Arthi Gupta
30 Mar, 2011
New York City

The UK indexes edged higher after retail sales rose in March and services index climbed in January. Tullow sold one-third interest in Uganda oil field for $2.9 billion. Dixons plunged after lowering its earnings estimate for fiscal 2011.

[R]4:00 PM London – The UK indexes edged higher after retail sales rose in March and services index climbed in January. Tullow sold one-third interest in Uganda oil field for $2.9 billion. Dixons plunged after lowering its earnings estimate for fiscal 2011.[/R]

Britain decided to expel five Libyan diplomats whom it deemed as persons who ""could pose a threat"" to national security if they remain in Britain.

The decision was widely expected after the UK led air strikes over Libya and faced criticism from the nations in the Middle East and Africa that killed hundreds of citizens.

Foreign Secretary William Hague said in the Parliament on Wednesday, ""To underline our grave concern at the [Qadhafi] regime''s behavior, I can announce to the House that we have today taken steps to expel five diplomats at the Libyan Embassy in London, including the military attache.""

In London, FTSE 100 Index gained 23.89 or 0.40% to 5,956.06 and the pound edged higher to close at $1.6036.

Britain''s Competition Commission, which ordered the British Airports Authority two years ago to sell two of its UK airports, asked BAA to press ahead with the sales.

The Competition Commission provisionally concluded on Wednesday that BBA, a Spanish-owned operator of six British airports, should still be required to sell Stansted airport and Edinburgh or Glasgow airport.

UK Retail Sales Rises

UK retail sales rose in the first-half of March compared with a year ago, survey results from the Confederation of British Industry showed on Wednesday.

The survey showed 42% of retailers reported an increase in sales volume in the year to March, while 27% said they fell. The resulting balance of 15% exceeded retailers'' expectations of zero growth.

UK Service Index Climbs

The UK services index climbed 1.3% on a monthly basis in January following a 1.1% fall in December, data released by the Office for National Statistics showed today. The service sector accounts for more than 70% of economic activity in the UK.

Annually, the index climbed 2.2% in January reversing a 0.4% fall in December.

Tullow Sells Oil Interest in Uganda for $2.9 Billion

Tullow Oil plc signed Sale and Purchase Agreements with CNOOC and Total in respect of the sale of a one-third interest to each party of the interests Tullow holds in Exploration Areas 1, 2 and 3A in Uganda. Tullow will retain a one-third interest.

The terms of the transactions include a total cash consideration payable to Tullow of $2.9 billion.

Gainers & Losers

Aminex Plc surged 3.08% to 8.38 pence after the Irish oil and gas explorer reported fiscal year 2010 revenue fell 0.9% to $6.92 million versus $6.98 million in the comparable period. Pre-tax loss widened 55.4% to $4.49 million compared with a $2.89 million loss last year.

Bellway Plc increased 2.42% to 698.50 pence after the home builder said first-half revenue increased 13.1% to £407.9 million from £360.8 million a year ago.

In the period, the company completed 2,332 homes, up 4% from last year, and average sales price grew 8.1% to £168,428.

BT Group plc gained 0.44% to 182.90 pence after the communications solutions provider brought forward the payment of its next pension deficit contribution from December to this month, and now paid £505 million to the Trustee of the BT Pension Scheme.

BT said it decided to accelerate the payment due to economical benefits and to utilize existing cash deposits.

Dixons Retail plc plunged 17.61% to 13.80 pence after the specialist electrical retailing and services group estimated underlying pre-tax profit for fiscal 2011 excluding its operations in Spain to be about £86 million from its previous forecast range for underlying profit before tax of between £100 million and £110 million.

GlaxoSmithKline Plc rose 0.68% to 1,192.00 pence after the drug giant, which has the marketing rights for Lovaza in the U.S. said a row over patent of the omega-3 supplementary drug in the U.S. has been settled.