UK Indexes Trade Sideways on Confidence Index at 2-year Low

Arthi Gupta
28 Apr, 2011
New York City

The UK indexes traded sideways after consumer confidence declined to its lowest level since February 2009. Irish retail sales deteriorated in March. AstraZeneca net rose on UK and U.S. tax settlements.

[R]4:00 PM London – The UK indexes traded sideways after consumer confidence declined to its lowest level since February 2009. Irish retail sales deteriorated in March. AstraZeneca net rose on UK and U.S. tax settlements.[/R]

In London, FTSE 100 Index declined 1.49 to 6,066.67 and the pound edged higher to close at $1.6690.

UK Consumer Confidence Falls

Confidence among consumers in the UK declined to its lowest level since February 2009, according to a leading survey report.

An index measuring consumer confidence in the UK plunged to minus 31 in April from minus 28 in March, market research group GfK said on Thursday.

Irish Retail Sales Slump

Ireland''s retail sales declined 1.7% annually in March, faster than February''s upwardly-revised 0.6% decline, preliminary data released by the Central Statistics Office showed on Thursday. Sales declined for a second straight month.

Excluding automobiles, sales volume dropped 3.5% in March, following the downwardly-revised 3.6% decline in February.

On a monthly basis, retail sales volume edged up a seasonally-adjusted 0.1% in March, markedly slower than the downwardly-revised 3.1% increase recorded in February.

Gainers & Losers

AstraZeneca Plc slumped 3.58% to $49.77 after the biopharmaceutical company reported first quarter revenue declined 3.4% to $8.29 billion from $8.58 billion in the comparable period, reflecting the loss of more than $550 million of revenue from generic competition as well as the impact from government price interventions.

Profit in the quarter increased 4.7% to $2.91 billion from $2.78 billion a year ago. On a per share basis, reported earnings per $0.25 ordinary share improved to $2.07 from $1.90 last year.

British Sky Broadcasting Group plc gained 0.78% to 841.00 pence after the satellite broadcasting company said third quarter revenue grew 13% to £1.65 billion from £1.46 billion in the comparable period last year. Profit in the quarter declined 39.2% to £174 million or 9.9 pence per share from £286 million or 16.4 pence per share last year.

Royal Dutch Shell plc rose 0.45% to 2,319.00 pence after the independent oil and gas explorer reported first quarter revenue increased 27.7% to $109.92 billion from $86.06 billion in the comparable period. Net income in the quarter climbed 60.2% to $8.78 billion from $5.48 billion a year earlier. Earnings per share also improved to $1.42 from $0.89 in the same period last year.

Standard Life Plc surged 4.02% to 227.90 pence after the long-term savings and investments business reported for the three months to March 31 long-term savings new business sales increased 25% to £5.8 billion pounds from last year''s £4.6 billion pounds.

Unilever plc fell 2.51% to 1,940.00 pence after the supplier of consumer goods said first quarter turnover grew 7% to €10.86 billion from prior year''s €10.14 billion.

The company also reported underlying sales growth of 4.3% with all categories growing, driven by emerging markets up 9.9%.

WPP Plc climbed 2.76% to 780.50 pence after the communications and marketing services company’s first quarter revenues increased 7% to £2.22 billion.