Resources Heavy UK Indexes Rise; Vodafone Sells SFR Stake for

Nigel Thomas
04 Apr, 2011
New York City

UK stocks edged higher in a quiet trading as crude oil prices overshadowed the deal making. Crude oil in London jumped more than 1% to a 30-month high. Vodafone Group sold its stake in France based SFR for nearly

[R]5:30 PM London – UK stocks edged higher in a quiet trading as crude oil prices overshadowed the deal making. Crude oil in London jumped more than 1% to a 30-month high. Vodafone Group sold its stake in France based SFR for nearly €8 billion. Financial industry survey indicated higher activities.[/R]

UK benchmark index closed higher after commodities and oil gained. Copper and resource sensitive stocks led the gainers in trading.

FTSE 100 index increase 7.06 to 6,016.98 and FTSE All-Share index increased 5.32 to 3,122.15.

The rising tensions in Libya brought oil in focus in London and New York trading. Libyan rebels struggle to take hold of key oil producing cities. France and UK stepped rhetoric to ouster Libyan leader Mommar Gaddafi as Arab League and African Union question the motives of bombings.

The index edged up after crude oil price in London and New York reached to a 30-month high. In New York oil traded as high as 0.4% to $108.56 a barrel and in London the price increased 1.1% to $120.04.

Confederation of British Industry survey indicated financial services sector increased in the third quarter ending in March and around 33% participants said business volume increased and 11% said declined.

The latest survey of construction industry indicated that Markit/CIPS Construction Purchasing Managers’ index slipped to 56.4 in March and declined from the eight month high of 56.5 in January.

Stock Movers

Vodafone fell 0.2% to 178.85 pence.

Vivendi increased 0.8% to 20.67 euros after it agreed to acquire 44% stake in the second largest mobile company in France, SFR for 7.9 billion euros from the UK based Vodafone.

Banks in Ireland increased for the second week after the release of the stress tests that will see the injection in banks of as much as $34 billion. Bank of Ireland increase 11% to 35 euro cents and Allied Irish Banks PLC increased 9.5%.

Cranswick declined nearly 5% or 41 pence or 790 pence after the company guided fiscal year ending in March earnings in line with expectations.

Close Brothers edged lower after it agreed to acquire independent financial advisor Cavanagh Group for £26.2 million. Cavanagh increase 2.2% or 45.50 pence to 215 pence.

Premier Oil increased 48 pence to 2,054 pence after the company exercised its option to drill a well in the Central North Sea.

Aggreko increased 84 pence to 1,678 pence after the company won an order for 200 megawatts of temporary power supply. The deal is for a minimum of one year and half of electricity is generated from diesel and the other half from natural gas.

The temporary power plant located in Tokyo bay area is expected to ready in June in Tokyo.

Rockhopper Exploration Plc soared 16% to 276.25 pence after the Falkland Islands based oil explorer said its oil field Sea Lion may cover wider area than previously estimated.

Of the FTSE 100 index stocks, Fresnillo increased 2.9% to 1,611 pence, Antofagasta increased 1.9% to 1,424 pence and Xstrata gained 1.6% to 1,511 pence.

Of the FTSE 100 index, Man Group led the decliners with a loss of 3.7% to 243.70 pence followed by Essar Energy fell 2.4% to 461.60 pence and Randgold Resources Ltd fell 1.8%.