UK Index Down 1%, Amlin Sales Up 14%, Supergroup Plunges 22%

Arjun Dave
12 May, 2011
New York City

UK stocks traded lower after commodities accelerated the decline for the second day in a row. Crude oil fell 2.5% and silver plunged 7% in London trading. For the month, oil is down 15% and silver has fallen 32%. Miners closed lower. Amlin reported sales increase of 14%.

[R]4:00 PM London – UK stocks traded lower after commodities accelerated the decline for the second day in a row. Crude oil fell 2.5% and silver plunged 7% in London trading. For the month, oil is down 15% and silver has fallen 32%. Miners closed lower. Amlin reported sales increase of 14% and Supergroup sales growth declined to 61%.[/R]

Total UK production output in March rose 0.7% from a year ago. Output in mining decreased 10.7% and energy increased 1.6%. Manufacturing output surged 2.7% in February from a year ago month.

The International Energy Agency today cut its 2011 outlook for oil demand helping the crude oil futures by 2.8% to $95.47 a barrel.

European markets traded lower after resources and commodities linked companies led the decliners. Miners, and energy related companies fell in London, Frankfurt and Paris. Industrial output in the euro-zone fell in March.

Industrial output in 17-nations euro zone fell 0.2% and 0.3% in the wider zone of EU 27 from previous month and rose 5.3% in the euro area and 4.6% in the EU 27 from a year ago.

FTSE 100 index declined 51.62 or 0.9% to 5,924.38 and FTSE All Share index dropped 24.98 to 3,088.22. Market index in Paris, Germany, Spain and Italy dropped more than 1%.

Stock Movers

Fresnillo Plc plunged 7.4% after July delivery of silver dropped 7% to $32.85 an ounce. In London, Kazakhmys Plc declined 3.7% and Anglo American Plc fell 3.1%.

Energy complex companies also traded lower. Total SA declined 2% but airlines traded higher. BP Plc and Royal Dutch Shell declined nearly 2%.

Deutsche Lufthansa AG gained 2.4% and Air France KLM added 0.6%.

Separately, International Consolidated Airlines Group, the parent of British Air and Iberia gained 0.3% after the media reports suggested that the union members are expected to meet on Thursday to bring to an end to long running series of strikes.

Amlin declined 1.5 pence to 423.50 pence after the biggest Lloyd’s of London insurer said sales increased 14% in the four months ended April to £1.1 billion. The company also set aside £260 million to cover claims for the New Zealand and Japanese earthquakes.

Sales rose largely on the business in UK.

Supergroup fell 349 pence to 1,225 pence after the apparel retailer reported sales in the quarter to May 1 increased 61% form a year ago to £66 million. Wholesale sales increased 89% to £34 million and retail sales increased 39% to £32 million.

Sales in the quarter was lower than 71% surge in the year to May 1 after it slowed the new store opening to one from six in the previous year quarter.