UK Stocks Advance on Miners, Brent Crude at 30-month Peak

Marcus Jacob
08 Apr, 2011
New York City

UK stocks advanced following a steady rise in commodities Resource linked stocks led the gainers after gold and silver reached a new high in three decades and crude oil gained to 30-month record above $125. Producer price increased more than estimated in March.

[R]4:30 PM London – UK stocks advanced following a steady rise in commodities Resource linked stocks led the gainers after gold and silver reached a new high in three decades and crude oil gained to 30-month record above $125. Producer price increased more than estimated in March.[/R]

Stocks in London rose after resource linked stocks lifted indexes. Commodities closed higher after gold and silver traded at 31-year highs and crude oil closed above $125.

FTSE 100 index increased 48.38 or 0.8% to 6,055.75 and FTSE All Share index rose 0.8% or 23.70 to 3,138.23. Brent crude oil futures of immediate month increased 1.9% to $125.05 a barrel, highest since August 2008.

UK producer prices index or wholesale annual inflation for all manufactured products rose 5.4% in March, according to the latest data released by the Office for National Statistics.

Between February and March output price rose 0.9% mainly reflecting price rises in petroleum, food and alcohol products.

Stock Movers

Bwin.Party Digital Entertainment declined 6.40 pence to 135.60 pence after Germany proposed 17% tax on gambling turnover.

BHP Billiton increased 2.5% to 2,585.50 pence and Rio Tinto increased 3.2% to 4,525 pence. Fresnillo Plc, one of the leading silver miner increased 2.4% to 1,646 pence.

Games Workshop Group Plc soared 13% to 417.30 pence after the company announced 20 pence dividend and said pre-tax profit for the year ending in May will surpass analysts’ estimates.

Great Portland Estates increased 0.30 pence to 384.30 pence after a broker lifted stock price target.

Henderson Group gained 1.40 pence to 169.90 pence and the company completed the acquisition Gartmore. The company stock was upgraded by two brokers.

Kenmare Resources increased 3.50 pence to 49 pence after commodities prices advanced for the third week in a row.

Lamprell added 19.40 pence to 360.30 pence on the rumors that the company is in discussion to acquire Norway based Maritime Industrial Services.

Scottish & Southern increased 2.3% to 1,312 pence after Credit Suisse made positive comments.

Unite Group declined 3 pence to 210.90 pence and the student accommodation provider said net asset value of the fund in the first quarter.