UK Service Sector Improves; Persimmons, Tullow in Focus

Arthi Gupta
05 Jul, 2011
New York City

The UK indexes edged higher after service sector activity improved marginally and Irish service sector grew in June. Tullow surged 3.1% after estimating revenue of about $1.05 billion for the first-half.

[R]3:45 PM London – The UK indexes edged higher after service sector activity improved marginally and Irish service sector grew in June. Tullow surged 3.1% after estimating revenue of about $1.05 billion for the first-half.[/R]

In London, FTSE 100 Index declined 1.12 to 6,016.49 and the pound edged higher to $1.6097.

UK Service Sector Activity Improves

The UK service sector activity growth sustained in June according to data released by Markit Economics.

The headline Markit/Chartered Institute of Purchasing & Supply Business Activity Index rose to 53.9 from 53.8 in May, data showed today.

Irish Service Sector Grows

Ireland''s service sector expanded at a faster pace in June, data from a survey conducted by NCB and Markit Economics showed on Tuesday.

The seasonally adjusted NCB/Markit purchasing managers'' index increased to 52.4 in June from 50.5 in May.

Gainers & Losers

Interserve Plc gained 1.82% to 336.25 pence after the support services and construction companies said first-half trading is in line with expectations.

N Brown Group Plc rose 0.65% to 263.50 pence after the home shopping retailer said its total group revenue for the 18-week period ended July 2 increased 5.1%. Revenue growth on a like-for-like basis was 1.6%, adjusting for the sales of Figleaves acquired in June 2010.

Persimmon Plc fell 1% to 486.90 pence after the homebuilder said first-half sales was around £715 million and completed 4,439 homes with sales improving from the lower sales order book at the start of the year.

St. Modwen Properties plc increased 2.1% to 194.60 pence after the regeneration specialist reported first-half revenue rose 5.1% to £61.3 million from £58.3 million in the comparable period. Profit for the period increased 9.1% to £28.7 million or 14.3 pence per share compared to £26.3 million or 13.1 pence a share in the prior year period.

Tullow Oil Plc surged 3.11% to 1,292 pence after the independent oil and gas explorer estimates first-half total revenue at around $1.05 billion, compared with $486 million for the same period in 2010. The sales increase was driven by higher commodities prices and a one-time event.