UK Indexes Gain; BHP Billiton Record Net

Arthi Gupta
24 Aug, 2011
New York City

The UK indexes gained after mixed global economic data. Glencore offered A$0.87 a share in cash for remaining stake in Australia-based Minara Resources. BHP fiscal year net surged to record high on the revenues gain of 36% and a strong demand from China.

[R]3:15 PM London – The UK indexes gained after mixed global economic data. Glencore offered A$0.87 a share in cash for remaining stake in Australia-based Minara Resources. BHP fiscal year net surged to record high on the revenues gain of 36% and a strong demand from China.[/R]

U.S. indexes traded higher after better-than-estimated durable goods orders. European indexes gained but German business sentiment deteriorated in August.

The French government proposed to reduce spending by €10 billion or $14.4 billion in 2012 to meet its deficit targets.

In London, FTSE 100 Index gained 47.55 or 0.94% to 5,173.56 and the pound edged lower to $1.6457.

Glencore Bid for Remaining Stake in Minara

Glencore International Plc, the Swiss mining and commodities trader proposed to take over the remaining 27% stake, which it does not already own in Minara Resources Limited, the Australian cobalt and nickel producer.

The company offered A$0.87 a share in cash to Minara shareholders valuing Minara at A$1.02 billion.

Glencore International AG currently holds approximately 73% of the shares in Minara.

Gainers & Losers

BHP Billiton PLC gained 1.93% to 1,926.50 pence after the diversified natural resources company reported fiscal year 2011 revenue grew 35.9% to $71.74 billion compared to $52.8 billion a year ago. Profit for the year increased 85.9% to $23.65 billion or 426.9 cents per share versus $12.72 billion or 227.8 cents per share a year ago.

Filtrona plc surged 6.35% to 334.90 pence after the plastic and fibre products supplier reported first-half revenue grew 8.5% to £268.6 million from £247.6 million in the same period a year ago. Profit during the period declined 5.5% to £25.6 million or 12.1 pence per share from £27.1 million or 13.0 pence per share in the prior year.

ROK Global PLC plunged 14.09% to €0.50 after the mobile and web technology developer announced the acquisition of corporate intelligence provider RAM for £2.4 million, or €2.77 million.

Serco Group Plc slumped 6.56% to 497.10 pence after the outsourcing and support services provider reported first-half revenues grew 4.9% to £2.25 billion from £2.14 billion. Profit before tax increased 10.3% to £111.8 million pounds from £101.4 million pounds a year ago.

WPP plc soared 7.07% to 621 pence after the global media communications services company said first-half revenue rose 6.1% to £4.71 billion from £4.44 billion in the same period a year ago. Profit during the period surged 53% to £230.7 million or 18.1 pence per share versus £150.8 million or 12.0 pence per share last year.