UK Production Up 1.2%; Marks & Spencer, Misys, easyJet Rise

Marcus Jacob
06 Apr, 2011
New York City

UK stocks advanced as commodities rose and mining sector stocks gained. UK industrial production increased 1.2% in February but manufacturing was flat on a monthly basis. Marks & Spencer rose after it reported lower than expected same store sales decline.

[R]4:00 PM London – UK stocks advanced tracking the gains in commodities and mining sector stocks. UK industrial production increased 1.2% in February but manufacturing was flat on a monthly basis. Marks & Spencer rose after it reported lower than expected same store sales decline.[/R]

UK stocks traded higher tracking the gains in the commodities and resource linked sectors. UK manufacturing declined 1.2% in February from January.

The FTSE 100 index increased 44.50 to 6,051.56 and FTSE All-Share Index increased 21.30 to 3,138.01.

Markets in France and Germany gained a fraction and in Milan soared 1.3% after Intesa SpA planned a 5 billion euros public offering ahead of bank stress test.

The manufacturing index tracked by the Office of National Statistics increased 1.2% in February from January and rose 2.4% from a year ago.

On a monthly basis, energy supply decreased 2.1% and manufacturing was flat but rose 4.9% from a year ago. Mining output soared 7.3% on monthly basis.

Stock Movers

Ashtead Group declined 3.4 pence to 204.50 pence after Panmure Gordon lifted target price by 22 pence to 235 pence. Panmure Gordon lifted earnings target for fiscal year ending in April 2012 by 14.1%.

Carillon increased 7.4 pence to 387.30 pence.

Debenhams gained 2.20 pence to 63.05 pence after Marks & Spencer reported better than expected results.

easyJet increased 11.70 pence to 337.50 pence after the budget airlines said in March flew 4.4 million passengers, 11% more than a year ago moth.

Misys soared 11.20 pence to 337.20 pence after the personal finance software vendor reported third quarter sales increase of 7%.

Marks & Spencer soared 6.4% to 361.50 pence after the retailer reported same store general merchandise sales declined 3.9% in the quarter to April 2, lower than the company guidance between 4% and 8%.

General Merchandise total sales decline 3.4% and same store food sales increased 3.4% and overall same store sales increased 0.1%.

Overall sales increased 4.2% in the quarter and UK sales increased 3.2% and overseas sales rose 12.6%.

The retailer also guided gross margin to increase between zero and 25 basis points in the current fiscal year and operating costs are expected to rise 5%.

Of the stocks in the FTSE 250 index, Centamin Egypt Ltd led the gainers with a rise of 6.6% to 147 pence followed by Dunelm Group increased 5.4% to 430 pence and Pace Group gained 4.6% to 158.50 pence.

Of the stocks in the index, Taylor Wimpey led the decliners with a loss of 3% to 39.02 pence and Barratt Developments dropped 2.3% to 109.70 pence and Avis Europe dropped 2.3% to 191 pence.