UK Indexes Drop 1.8%; Consumer Confidence Improves

Arthi Gupta
30 Sep, 2011
New York City

The UK indexes declined on weak global economic data. UK consumer confidence rose in September. Ingersoll-Rand plunged 14.5% on weak third quarter and fiscal year 2011 outlook.

[R]3:00 PM London – The UK indexes declined on weak global economic data. UK consumer confidence rose in September. Ingersoll-Rand plunged 14.5% on weak third quarter and fiscal year 2011 outlook.[/R]

UK stocks declined following the sell-off in European markets and a weak opening in the U.S. Global markets were on the decline after China’s manufacturing contracted for the third month in a row.

China''s manufacturing activity contracted for the third straight month in September and German retail sales declined the most since 2007.

Personal income in the U.S. slid 0.1% but spending rose 0.2% in August.

In London, FTSE 100 Index dropped 92.15 or 1.8% to 5,104.80 and the pound edged lower to $1.5579. For the week, the FTSE 100 Index gained 0.7%.

UK Consumer Confidence Rises

Confidence among the UK consumers improved unexpectedly in September, according to latest survey results from research firm GfK NOP.

The consumer confidence index rose to minus 30 in September from the four-month low of minus 31 in August.

The indicator measuring consumers'' assessment of the general economic situation in the past 12 months fell one point this month to minus 58 in August. The one-year ahead outlook for the economy rose to minus 27 from minus 31 in August.

Gainers & Losers

AstraZeneca PLC gained 0.1% to 2,876 pence after the global pharmaceutical and biologics company entered into a settlement agreement in its U.S. Seroquel Xr patent infringement litigation against Handa Pharmaceuticals, LLC regarding Handa''s proposed generic version of AstraZeneca''s Seroquel Xr or quetiapine fumarate extended-release tablets.

Conexion Media Group Plc rose 1.1% to 0.48 pence after the entertainment and media group stated first-half revenue declined 26% to £1.07 million from £1.44 million in the year-ago period. Loss in the period widened 37% to £553,000 or 0.71 pence per share versus loss of £405,000 or 0.55 pence per share in the prior-year period.

Hyder Consulting plc fell 2.9% to 330 pence after the engineering and designing firm said its performance for the six months ending September 30 was in line with the management''s expectations.

Ingersoll-Rand Plc plunged 14.5% to $27.50 after the diversified industrial manufacturer estimates third quarter revenue in the range of $3.70 to $3.75 billion, down from the company''s prior forecast between $3.85 billion and $3.95 billion.

Earnings from continuing operations for the third quarter, excluding impairment charges and including $0.04 per share earnings from Hussmann operations, is now anticipated in a range of $0.77 to $0.80 per share, down from the prior estimate in the range of $0.85 to $0.95 per share.

Fiscal year 2011 revenues are projected in the range of $14.25 to $14.40 billion, down from the company''s prior forecast between $14.70 billion and $14.90 billion.

The company lowered its earnings from continuing operations guidance, excluding impairment charges and including $0.07 per share earnings from Hussmann operations, to a range of $2.70 to $2.80 per share from the prior outlook between $2.90 and $3.10 per share.

Scottish and Southern Energy Plc dropped 1.9% to 1,281pence after the utility company said it continues to expect adjusted pre-tax profit for the first-half of the year to decline from last year, but expects this to not have any implications on the full financial year.