UK Home Prices Fall, BP Sells Stake in Sean Gas Field

Arthi Gupta
17 Dec, 2012
New York City

The UK indexes dropped after home prices fell in December. BP plc agreed to sell its interest in the Sean gas field to SSE for $288 million. AVEVA acquired Global Majic

[R]3:30 PM London – The UK indexes dropped after home prices fell in December. BP plc agreed to sell its interest in the Sean gas field to SSE for $288 million. AVEVA acquired Global Majic’s simulation software suite. Aggreko plunged 20% despite upbeat fiscal year outlook.[/R]

The UK indexes declined and home price fell in December and BP agreed to sell more assets to raise $38 billion to repay the cost of Gulf of Mexico disaster.

A private survey report showed that home prices in the UK are forecasted to increase 2% over the course of next year. However, the monthly fall in home prices continued their decline in December.

In London, the benchmark index FTSE 100 declined 19.56 or 0.3% to 5,902.09 and the pound edged higher to $1.6197.

UK Home Prices Drop

Home asking prices in the UK fell 3.3% from a month ago in December to £228,989, following a 2.6% decline in November, a survey by Rightmove showed.

Home prices in London declined 4% on a monthly basis to £464,398 in December.

In another report, home prices in the UK are estimated to rise 2% over the course of next year while the cost of renting a home is expected to increase 4%, the Royal Institute of Chartered Surveyors'' said in a report on Friday.

In addition to rising prices, the number of transactions is expected to increase 3% to 960,000 in 2013 from 930,000 this year.

BP Agrees To Sell Stake in Sean Gas Field

BP plc said that as part of its decision to market its stakes in non-operated North Sea assets, it has agreed to sell its interest in the Sean gas field in the UK North Sea to SSE plc for $288 million in cash.

The sale comprises BP’s non-operated 50% stake in Sean and the deal is anticipated to close during the first half of 2013.

Gainers & Losers

Aggreko plc plunged 20.1% to 1,701 pence after the temporary power provider reported group revenues for the year are expected to be in the region of £1.6 billion, up 13%, and profit before tax and amortization is expected to be around £365 million, up 12%, in line with previous guidance; earnings per share are expected to grow at least 15%.

AVEVA Group Plc rose 0.2% to 2,093 pence after the computer software and services marketer acquires Global Majic’s simulation software suite.

GlaxoSmithKline Plc climbed 0.1% to 44.15 pence after the healthcare group said that the U.S. Food and Drug Administration approved FLUARIX QUADRIVALENT for the immunization of children and adults to help prevent disease caused by seasonal influenza virus.

Oxford Instruments plc climbed 0.4% to 1,386 pence after the tools and systems provider said it acquired Asylum Research Corporation, a provider of Scanning Probe Microscopes, for an initial debt-free cash-free $32 million, with a performance based deferred element of up to $48 million payable over three years.

The British Land Company Plc fell 0.5% to 558.50 pence after the real estate investment trust and Oxford Properties announce that their 50:50 joint venture has entered into a agreed non-binding agreement with the insurer Amlin plc for a 111,000 sq ft pre-let at The Leadenhall Building.

WPP plc dipped 0.4% to 870.50 pence after the advertising company announced that its wholly-owned operating company GroupM agreed to acquire Filmworks China.