UK Mortgage Approvals Drop, Man Group Slips to Loss

Arthi Gupta
24 Jul, 2012
New York City

The UK indexes slid after debt pressures intensified in the euro zone. The UK mortgage approvals declined unexpectedly in June. Anglo American agreed to acquire a 58.9% interest in a metallurgical coal project in Mozambique.

[R]3:15 PM London – The UK indexes slid after debt pressures intensified in the euro zone. The UK mortgage approvals declined unexpectedly in June. Anglo American agreed to acquire a 58.9% interest in a metallurgical coal project in Mozambique.[/R]

The UK indexes slid after debt pressures intensified in the euro zone, Greece is facing another tortuous negotiation with troika and three most advanced nations in the euro zone debt rating views were cut to negative.

Moody''s Investors Service downgraded its rating outlook on Germany, the Netherlands and Luxembourg to “negative” from “stable.” The debt rating agency cited rising cost of additional bailouts and the possible exit of Greece from the currency union.

In London, the benchmark index FTSE 100 declined 7.79 or 0.1% to 5,526.15 and the pound edged higher to $1.5530.

UK Mortgage Approvals Drop

The UK mortgage approvals declined unexpectedly in June, the latest data from the British Bankers'' Association showed today.

The number of approvals fell to 26,269 in June from a revised 29,567 in May. The average hoe purchase approval was £166,600.

Total mortgage approvals that include house purchases, re-mortgages and other secured lending, declined to 51,610 in June from 59,923 in May. Home purchase approvals were 20.5% lower than a year ago.

Gainers & Losers

Anglo American plc rose 0.5% to 1,957 pence after the miner agreed to acquire a 58.9% interest in the Revuboè metallurgical coal project in Mozambique from the Talbot Estate for A$540 million cash or around $555 million.

CSR plc slumped 3.4% to 291.50 pence after the chipmaker reported second quarter profit revenue climbed 37% to $266.5 million from the prior year. Profit for quarter plunged 56% to $5 million or 3 cents per share from $11.4 million or 7 cents per share last year.

Dialog Semiconductor plc plunged 9.1% to €14.06 after the semiconductor manufacturer said second quarter revenue climbed 37.4% to $159.5 million from the prior year. Net profit fell 31% to $8.5 million or 12 cents per share from $12.3 million or 18 cents per share in the prior year.

Imperial Tobacco Group Plc gained 0.9% to 2,471 pence after the tobacco maker stated net revenue increased 3% for nine months ended June 30.

Man Group Plc soared 4.3% to 72 pence after the hedge fund manager said first-half-statutory pre-tax loss was $164 million compared with a profit of $70 million last year.

Rolls-Royce Holdings PLC gained 1.1% to 844.50 pence after the power systems provider signed a contract with shipowner Fjord Line A/S to install liquefied natural gas based power and propulsion systems in two cruise ferries being built at the Bergen Group Fosen AS yard in Norway.

WPP PLC fell 0.4% to $61.69 after the advertising company said Commarco GmbH, the German-based marketing services network acquired a majority interest in KKLD* GmbH.