UK Limps Back to Normalcy; Construction Output Grows 2.3%

Arthi Gupta
12 Aug, 2011
New York City

The UK indexes rose led by banks. Normality returned in the UK after four days of arson and looting. France, Italy, Spain and Belgium banned short-selling of financial stocks. The UK construction output grew 2.3% in the second quarter, more than the initial estimate.

[R]3:30 PM London – The UK indexes rose led by banks. Normality returned in the UK after four days of arson and looting. France, Italy, Spain and Belgium banned short-selling of financial stocks. The UK construction output grew 2.3% in the second quarter, more than the initial estimate.[/R]

UK returned to normality after four days of violence and looting with official estimates of loss of at least £200 million.

The UK government established a new £20 million support scheme to help small businesses, homeowners or individuals affected by the recent rioting in London and other cities yesterday.

Prime Minister David Cameron yesterday promised “extra powers” to police to quell the violence. Cameron warned rioters that they will be tracked down, charged and punished for what they have done.

However, a group of juvenile delinquents have been allowed to return home despite David Cameron''s promises that they would face ""punishment.""

France, Italy, Spain and Belgium banned short-selling of financial stocks from today to prevent further declines in banking stocks’ share prices, the European Securities and Markets Authority said.

In London, FTSE 100 Index surged 123.45 or 2.5% to 5,287.97 and the pound edged higher to $1.6261.

For the week, the FTSE 100 Index gained 0.78%.

UK Construction Output Grows

U.K. construction output grew 2.3% sequentially in the second quarter, more than the initial estimate in the second quarter, the Office for National Statistics said on Friday.

Gainers & Losers

Anglo Pacific Group surged 4.54% to 292.70 pence after the natural resources royalties company announced the purchase of 7207565 Canada Inc. from KWG Resources Inc. for $18 million.

The company owns a 1% net smelter royalty interest in the Black Thor, Black Label and Big Daddy chromite deposits, owned and operated by Cliffs Natural Resources in Northern Ontario.

BP plc, the international oil and gas explorer gained 0.72% to 399.50 pence after a broker downgrade of its stock to “neutral” from “buy.”

EnQuest Plc soared 6.94% to 115.50 pence after the independent oil and gas producer and developer stated first-half revenue, on a reported basis, rose 128% to $511.42 million compared with $224.54 million in the year-ago period. Pre-tax profit for the period climbed 395% to $206.13 million from $41.66 million in the prior year.

Sports Direct International plc increased 6.07% to 218.40 pence after the sporting goods retailer welcomed the decision by the Office of Fair Trading to drop its investigation in the sports retail sector.

SVG Capital plc rose 3.35% to 250 pence after the private equity investor stated six-month profit attributable to equity holders of the parent surged 439% to £246.65 million or 78.3 pence per share compared to £45.77 million or 14.7 pence per share last year.