UK Indexes Higher; Construction Activity Drops

Arthi Gupta
04 Jul, 2011
New York City

The UK indexes gained after financial services sector growth eased in the second quarter. The UK construction activity fell in June and individuals injected

[R]3:30 PM London – The UK indexes gained after financial services sector growth eased in the second quarter. The UK construction activity fell in June and individuals injected £5.83 billion in housing equity in the first quarter.[/R]

In London, FTSE 100 Index gained 38.55 or 0.65% to 6,028.21 and the pound edged higher to $1.6083.

UK Construction Activity Falls, Financial Services Growth Eases

UK construction activity eased marginally in June mainly due to slower expansion of new orders, survey results from Markit Economics showed today.

The seasonally adjusted Markit/Chartered Institute of Purchasing & Supply construction purchasing managers'' index fell to 53.6 in June from 54 in May.

Separately, individuals injected £5.83 billion in housing equity in the first quarter compared to £7.13 billion in the fourth quarter, the Bank of England said. The data for the fourth quarter was revised from £7 billion.

Volumes of business across the UK financial services sector grew at a slower pace during three months to June, a survey carried out by Confederation of British Industry/Pricewaterhouse Coopers showed today.

Around 44% of the respondents said that their business volumes rose and 28% said they fell. The resulting rounded balance of +17% was slower than expected (+30%) and below the balances recorded in the preceding three quarters.

Gainers & Losers

Best of the Best Plc gained 2.28% to 16.88 pence after the luxury goods competition company stated fiscal year 2011 revenue from combined operations declined 10% to £6.57 million from £7.3 million in the previous year. Profit for the year surged 288% to £132,000 or 1.11 pence per share compared to £34,000 or 2.6 pence per share a year ago.

Cyril Sweett Group Plc fell 4.44% to 43 pence after the construction and property consultancy reported fiscal year 2011 revenues climbed 11% to £72.83 million from £65.62 million a year ago. Profit for the year from continuing operations rose 14.5% to £1.66 million or 2.6 pence per share from £1.45 million or 2.5 pence per share in the prior year.

Psion Plc plunged 14.1% to 77 pence after the mobile computing solutions company estimates a loss in the first-half compared to last year''s profit, mainly reflecting product development expenses and an anticipated decline in revenues, despite higher unit shipments.

Ultra Electronics Holdings Plc rose 0.4% to 1,710 pence after the aerospace and defense company received a ''letter of award'' relating to an airport IT and systems integration contract in the Sultanate of Oman worth 127.5 million Omani Rials or about £207 million.