UK Indexes Decline, Irish Retail Sales Rise

Arthi Gupta
28 Aug, 2012
New York City

The UK indexes declined and caught up with the gloomy world market outlook as Japan joined China and the euro zone in lowering economic outlook. Irish retail sales increased in July. G4S planned to cut 1,100 jobs as part of a restructuring.

[R]3:45 PM London – The UK indexes declined and caught up with the gloomy world market outlook as Japan joined China and the euro zone in lowering economic outlook. Irish retail sales increased in July. G4S planned to cut 1,100 jobs as part of a restructuring.[/R]

The UK indexes traded lower after a long holiday weekend and investors focused on the slowing world economies. Japan offered the latest evidence and lowered its economic assessment and blamed weakening exports.

In London, the benchmark index FTSE 100 declined 23.80 or 0.4% to 5,753.76 and the pound edged lower to $1.5791.

Commodities prices traded near the recent highs and freight rate index for ocean shipment declined and traded near the low of the year.

Irish Retail Sales Rise

Ireland''s retail sales including automobiles, increased a seasonally adjusted 0.7% from a month ago in July, following the 1% fall in June, data released by the Central Statistics Office showed.

Sales of food, beverages and tobacco rose 2.3% on a monthly basis in July.

Annually, sales volume declined 1.5% in July, from the 6% drop in June, data showed.

Gainers & Losers

AstraZeneca plc fell 0.5% to 2,966.50 pence after the drug maker appointed Pascal Soriot as its chief executive officer.

Bunzl plc declined 2.3% to 1,086 pence after the outsourcing services provider reported first-half revenue rose to £2.61 billion, from £2.44 billion last year. Pre-tax profit gained 8% to £121.2 million, from £112.1 million last year.

G4S plc dropped 2.4% to 258.70 pence after the security services company said revenue rose 5.8% to £3.9 billion, with a strong performance in developing markets. Pre-tax profit for the period plunged to £61 million from £151 million last year.

United Drug plc rose 1.2% to €2.60 after the healthcare services provider of agreed to acquire the entire issued share capital of Synopia RX LLC for a total consideration of up to $12 million.