UK Home Prices Flat; Ryanair Swings to Profit

Arthi Gupta
30 Jan, 2012
New York City

The UK indexes declined as banks and miners fell today and home prices were flat in January. Centrica agreed to acquire non-operated interests in the Statfjord energy field for

[R]2:45 PM London – The UK indexes declined as banks and miners fell today and home prices were flat in January. Centrica agreed to acquire non-operated interests in the Statfjord energy field for £142 million.[/R]

The UK indexes declined led by banks and miners and European leaders gather for the seventeenth time in two years to discuss debt crisis. Commodities edged lower and Iran threatened to cut off oil supply to Europe.

Lloyds plunged 4.8%, Standard Chartered slumped 3.1% and Royal Bank of Scotland declined 4%.

RBS Chief Executive Stephen Hester declined his bonus share award worth £963,000 after public outcry and political row against large bonuses at bailed out banks.

Resources stocks declined on the ongoing worries in the euro zone. Anglo American fell 2.7%, Antofagasta slumped 3%, Evraz plunged nearly 5% and Rio Tinto dipped 0.7%.

European Union leaders are scheduled to meet in Brussels later today to discuss measures to spur growth and finalize the rescue fund. The meeting is scheduled to finalize a fiscal pact and the endorsement of the European Financial Stabilization Mechanism that may have a capital of as much as €500 billion.

Greek leaders appear to agree on broad terms of the debt structuring with international lenders. However, Greek Prime Minister Lucas Papademos urged three party leaders to finalize the accord with lenders but leaders are resisting the calls to cut private sector pay and calls from Germany to audit government budgets.

In London trading FTSE 100 Index declined 63.82 or 1.1% to 5,669.73 and the pound edged higher to $1.573.

UK Home Prices Flat

Home prices in the UK remained flat in January, the latest survey by Hometrack showed today.

Property prices saw no change this month after a 0.2% decline in December. Prices in London rose moderately during the month, offsetting price falls in other regions.

Separately, home prices in England and Wales decreased at a slower pace in December, data from a survey by Land Registry showed today.

The home price index fell 1.3% on an annual basis in December compared to the 2.1% decrease in November.

On a monthly basis, home prices remained flat in December, after rising 0.1% in November. However, the average price of a house in England and Wales rose modestly to £160,384 in December from £160,374 in November.

Centrica Increases Stake in Statfjord Field

Centrica plc reached an agreement with ConocoPhillips to acquire its non-operated interests in the gas and oil producing Statfjord field and associated satellites for a total cash consideration of $223 million or £142 million, including $103 million or £66 million attributable to historic tax allowances.

Gainers & Losers

Aviva plc plunged 3.8% to 342.60 pence after the insurance group is to sell Aviva Czech Life, Aviva Hungary Life and Aviva Romania Life & Pensions to U.S. life assurance firm MetLife.

The company, however, has not divulged the financial details of the proposed transaction.

BTG PLC soared 2.6% to 332 pence after the healthcare firm successfully completed the first phase of the U.S.-based trial of Varisolve, a varicose vein treatment.

Rank Group PLC climbed 2.3% to 129.90 pence after the casinos group confirmed speculation that it is in talks with Gala Coral about the potential acquisition of Gala''s casino business.

Ryanair Holdings PLC fell 1.2% to €4.10 after the low cost airline stated third quarter total operating revenues rose 13.1% to €844.4 million from €746.3 million in the comparable period last year. Net profit generated in the quarter was €14.9 million or €1.02 a share compared to a loss of €10.3 million or 69 cents a share a year ago.

SDL plc gained 0.1% to 691 pence after the translation software firm completed the acquisition of marketing analytics firm Alterian plc for £69.7 million.