UK Stocks Defensive, Miners Rebound; BP, Shell Down

Nigel Thomas
16 May, 2011
New York City

UK stocks edged lower on global economic worries following a weakness in European markets. Miners closed higher on a slight rebound in base metal prices but energy linked companies declined on a weakness in crude oil prices.

[R]4:00 PM London – UK stocks edged lower on global economic worries following a weakness in European markets. Miners closed higher on a slight rebound in base metal prices but energy linked companies declined on a weakness in crude oil prices.[/R]

FTSE 100 index declined 15.79 or 5,910.08 and FTSE All Share index decreased 9.7 to 3,080.79.

Across the Atlantic, European markets traded lower and the euro gained as finance ministers in the region gathered in Brussels to finalize the 78 billion euros bailout terms for Portugal. Ministers are also expected to discuss the conditions and steps for the additional funds for Greece.

European markets closed lower. The benchmark index in Paris declined 1%, in Spain fell 0.3%, in Germany dropped 0.6% and in Milan edged lower 0.5%.

Annual inflation in the euro area rose to 2.8% in April and increased from 2.7% in March. Monthly inflation was 0.6% in April. Compared to a year ago inflation rose to 3.2%.

First estimate of the Euro zone trade deficit in March with rest of the world was €2.8 billion compared to €2.7 billion a year ago month. First estimate for the wider EU27 trade deficit in March was €9.6 billion.

Stock Movers

Miners closed higher on the rebound in base metal prices. Antofagasta gained 4% to 1,185 pence, Kazakhmys added 2.1% to 1,239 pence, Fresnillo added 2% to 1,350 pence and BHP Billiton gained 1.9% to 2,384 pence.

Aggreko led the decliners with a loss of 3.1% to 1,745 pence followed by a loss of 2.5% in Invensys to 318 pence. ITV dropped 2.4% to 67.75 pence and Kingfisher declined 2.2% to 276 pence.

Cranswick increased 17 pence to 785 pence after it reported fiscal year to March sales volume increased 6% to £758 million. However, sales in the fourth quarter were flat.

Pre-tax profit increased 8% to £47.1 million and earnings per share increased 7% to 74.5 pence. The pork and sausage maker announced a final dividend of 18.7 pence, a 10% increase from a year ago and full year dividend of 27.5 pence, an increase of 10%.

Oil companies closed lower. Royal Dutch Shell Plc dropped 0.4% and BP Plc declined 1.1% as the deadline looms for its deal with Russia based Rosneft.