UK Orders, Mortgage Lending Rise; G4S, John Wood Up

Arthi Gupta
23 Aug, 2011
New York City

The UK indexes edged higher after manufacturing orders rose in August and mortgage approvals increased in July. Antofagasta first-half profit soared on higher commodity prices and strong growth in copper and gold output.

[R]4:30 PM London – The UK indexes edged higher after manufacturing orders rose in August and mortgage approvals increased in July. Antofagasta first-half profit soared on higher commodity prices and strong growth in copper and gold output.[/R]

Stocks in London traded higher and oil and metals gained. The indexes in European and the U.S. markets gained in light trading. UK manufacturing orders increased in July.

U.S. President Barack Obama held talks with British Prime Minister David Cameron to discuss the Libyan situation, reports said.

Libyan rebels led by the NATO aggression tightened their grip on Tripoli with the capture of Muammar Gaddafi''s three sons and fighting was still raging around Gaddafi''s compound in Tripoli but the whereabouts of the Libyan leader were still unknown.

In London, FTSE 100 Index gained 12.64 or 0.21% to 5,106.28 and the pound edged higher to $1.6508.

UK Orders Rise

UK manufacturing orders improved in August, according to the Confederation of British Industry.

The CBI industrial trends survey showed that the total orders balance improved to +1 in August from -10 in July.

Of the 510 firms surveyed, 31% expect production levels will rise in the next three months while 17% are expecting a decline.

UK Mortgage Lending Static

The number of mortgage approvals for home purchases in the UK rose to 33,417 in July from 32,123 in June, the British Bankers'' Association said today. The total value of approvals increased to £8.7 billion in July from £8.3 billion in June.

The number of home loans approved rose 4% from June''s level to 74,950 and was higher than in July 2010.

Gross mortgage lending remained unchanged at £7.6 billion in July.

Gainers & Losers

Antofagasta plc fell 0.74% to 1,203 pence after the Chile-based copper mining company reported first-half group turnover soared 73.4% to $3.05 billion from $1.76 billion in the previous year. Net profit attributable to equity holders surged 54.3% to $696.2 million or 70.6 cents per share.

Cairn Energy Plc declined 0.79% to 287.40 pence after the oil and gas explorer reported first-half profit attributable to equity holders was $371.5 million or 26.37 cents per share versus a loss of $12.6 million or 0.93 cents per share in the prior year.

Charter International Plc surged 19.4% to 742.50 pence after the Irish engineering business firm confirmed the press speculation of its takeover talks with a potential bidders other than Melrose Plc.

G4S Plc soared 6.16% to 258.60 pence after the security solutions provider reported first-half revenue grew 3.6% to £3.76 billion from £3.63 billion in the same period last year. Profit before tax increased 5% to £149 million from £142 million in the previous year.

John Wood Group Plc gained 4.92% to 544 pence after the energy services company said first-half total revenue rose 17% to $2.83 billion from $2.41 billion in the comparable period a year ago. Profit for the period before exceptional items increased 34% to $108.9 million or 20.6 cents from $81.2 million or 15.3 cents in the year-ago period.