UK Mortgage Approvals Rise, M4 Money Supply Falls

Arthi Gupta
04 Jan, 2012
New York City

The UK indexes traded sideways. The UK M4 money supply fell and mortgage approvals rose to a 23-month high in November but construction activity improved in December. Domino''s Pizza UK & IRL surged 6% but Next slumped 4%.

[R]2:30 PM London – The UK indexes traded sideways. The UK M4 money supply fell and mortgage approvals rose to a 23-month high in November but construction activity improved in December. Domino''s Pizza UK & IRL surged 6% but Next slumped 4%.[/R]

In London, FTSE 100 Index declined 8.88 or 0.2% to 5,691.10 and the pound edged higher to $1.5581.

UK M4 Money Supply Drops

M4, a measure of the quantity of UK money supply, dropped a seasonally adjusted 2.6% annually in November, after declining 2.7% in October, data from Bank of England showed today. Money supply fell for the fourteenth month in a row.

On a monthly basis, M4 money supply decreased 0.6% in November, after a 0.3% fall in October.

UK Construction Activity Improves, Mortgage Approvals Rise

Construction activity in the UK improved in December. The seasonally adjusted Markit/Chartered Institute of Purchasing & Supply (CIPS) Purchasing Managers'' Index rose to 53.2 in December, from 52.3 in November.

New business received by UK construction companies increased for a third consecutive month in December, Markit said.

Separately, the number of mortgages approved in November edged higher to 52,854, from 52,786 a month ago, the Bank of England said today.

Total lending to individuals rose by £1 billion in November. The annual growth rate was unchanged at 0.9%.

Gainers & Losers

Accenture Plc fell 0.5% to $52.95 after the management consulting, technology services and outsourcing company said Shell recently completed the transition of human resources and payroll application management services to the company.

BBA Aviation plc dipped 0.4% to 179.90 pence after the global aviation support and aftermarket services provider said its Signature Flight Support Corporation recently acquired assets of Azalea Aviation in Mobile, Alabama and 95% of Arrindell Aviation Services in St Maarten, Caribbean.

Domino''s Pizza UK & IRL Plc surged 6.2% to 439.45 pence after the pizza delivery firm said system sales for the 13-week period ended December 25 increased 9.5% to £145 million from £132.5 million reported in the prior year.

During the period, like-for-like sales in 604 mature stores rose 3.6% compared to 10.3% growth in its 553 mature stores in the preceding year.

Next Plc declined 3.9% to 2,633 pence after the retailer reported NEXT Brand sales increased 3.1% during the period between August 1 and December 24, with a 16.9% growth in NEXT Directory sales, although NEXT Retail sales dropped 2.7% excluding value added tax.

Smith & Nephew Plc climbed 0.6% to 630 pence after the medical technology firm agreed to form a joint venture to further develop its Biologics and Clinical Therapies division with specialist healthcare growth equity and venture capital firm Essex Woodlands.