Miners, Energy Complex Stocks Lift UK Indexes; M&S Net Up

Devan Biswas
24 May, 2011
New York City

UK stocks inched higher after oil and energy prices advanced and base and precious metals closed higher. Miners and resource linked stocks led the gainers in London. Marks & Spencer

[R]4:00 PM London – UK stocks inched higher after oil and energy prices advanced and base and precious metals closed higher. Miners and resource linked stocks led the gainers in London. Marks & Spencer’s annual net and revenues increased. Cable & Wireless Worldwide annual sales eased.[/R]

Stocks in London traded higher after commodities and energy prices increased. The rebound in the commodities complex lifted the resource sector stocks and miners.

FTSE 100 index increased 35.30 or 0.6% to 5,871.19 and All-Share index gained 0.45% or 17.17 to 3,059.83.

The benchmark indexes in Paris increased 0.3%, in Germany added 0.6%, Spain advanced 0.3% and in Milan inched up 0.2%.

In Europe, Germany left its estimate of first quarter economic growth at 1.5% matching its first estimate and the business climate index tracked by Ifo was flat in May at 114.2 matching the level in April.

Industrial new orders for EU17 area decreased 1.8% in March, after rising 0.5% in February and for the wider region of EU27 new orders fell 1.9% in March following an increase of 1.0% in February.

Spain completed the sale of 2.3 billion euros of 3- and 6-month treasury bills. The demand at the auction was healthy despite the recent losses suffered by the ruling party in local elections.

Marks & Spencer Net Rises

Marks & Spencer said revenues in the year to March increased to £9.7 billion from £9.5 billion and pre-tax profit increased to £714.3 million from £694.6 million a year ago.

The high end goods retailer also declared final dividend of 10.8 pence and full year dividend of 17 pence.

International sales increased 6.1% to a total of 10.3% of revenues. The retailer plans to increased retail space in the UK for each of the next three years by 3%

Stock Movers

Of the most active stocks, Cairn Energy increased 4.3% to 437.20 pence, Fresnillo added 4.1% to 1,355 pence, Antofagasta gained 3.6% to 1,202 pence and Aggreko closed up 3.3% to 1,768 pence.

Of the most active stocks, Marks & Spencer Group declined 2.3% to 387.70 pence, Lloyd Banking Group decreased 2.3% to 49.70 pence, International Consolidated Airlines Group SA fell 1.7% to 230.90 pence and Associated British Foods lost 1.5% to 1,062 pence.

Cable & Wireless Worldwide increased 2.24 pence to 51.90 pence after the telecom operator reported revenues for the year to March declined 0.4% to £2.26 billion and pre-tax net profit soared to £143 million from £16 million a year ago.

The company reported its first annual results as an independent entity after a spin-off from its parent Cable a& Wireless and said the demand for traditional land line will continue to decline but the demand for complex telecom products and networks will offset the fall.

Holidaybreak increased 27 pence to 267 pence after the travel group reported first half to March sales declined to £139.6 million from £150.2 million a year ago.

The education and activity travel group reported first half pre-tax loss of £16.8 million compared to a loss of £20 million a year ago. The company also declared half-year dividend of 3.35 pence, up 5% from a year ago.

The operating profit at its hotel division declined to £3.9 million from 4.2 million a year ago and sales at its camping division was 5% lower from a year ago.